Fleet Insurance: 5 Factors to Consider
Are you responsible for managing a fleet of vehicles? If so, one of your top priorities should be ensuring that your vehicles and drivers are protected with the right insurance coverage. Although, choosing the best fleet insurance isn’t always an easy task, as there are various factors to consider.
Below, we will guide you through the important factors that you should consider which will help you make an informed decision on fleet insurance.
Why is fleet insurance important for businesses?
Fleet insurance is a great investment for businesses that rely on numerous vehicles in order to operate. Whether you have a small fleet of vans and cars, or a large fleet of lorries, having the right insurance coverage is essential when it comes to protecting your employees and your vehicles.
The main purpose of fleet insurance is to provide financial protection against risks and liabilities associated with operating a fleet of vehicles. Accidents, theft, and damage to vehicles can all be very expensive situations to deal with. If you have the right fleet insurance policy in place, you can have peace of mind knowing that your fleet is protected against these types of events.
Factors to consider when choosing fleet insurance
When selecting fleet insurance, it’s important to consider several factors to ensure that you choose the most suitable coverage for your specific needs. Here are some key factors to consider:
1. Fleet size:
The size of your fleet will play an important role in determining the type and level of coverage you require. A larger fleet may require more comprehensive coverage, with a wider age range of drivers, while a smaller fleet may have slightly different needs in terms of insurance with the ability to allocate certain drivers to specific vehicles to bring costs down.
2. Vehicles types and usage:
The types of vehicles in your fleet and their usage should also be taken into account. Different vehicles have different types of risks, and the insurance coverage should line up with the specific risks associated with each type of vehicle.
3. Drivers and training:
The qualifications and experience of your drivers can impact your insurance rates. Insurance providers may consider factors such as driver age, driving record, and training programs when determining the cost of your coverage. It is important to assess the risk profile of your drivers and ensure that they meet any minimum requirements set by insurance providers.
4. Coverage options:
Fleet insurance providers can offer various coverage options, such as comprehensive, third-party fire & theft, and even third party only or ‘laid-up’ cover for vehicles that are off the road for periods of time. It’s essential to understand the different coverage options available and choose the ones that best suit your fleet’s needs. Your business should consider factors such as the value of your vehicles, and the likelihood of accidents occurring.
5. Policy & claim limits:
Policy limits are important considerations when choosing any insurance type, including fleet insurance. Policy limits determine the maximum amount the insurance provider will pay out in the event of a claim, while deductibles are the amount you will need to pay yourself before the insurance coverage does. It’s crucial to strike the right balance between premiums you can afford as a business and appropriate coverage.
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