You need to do your due diligence as the owner of a fleet business. There are a lot of factors that you need to keep in mind.
One issue that you can’t overlook is the importance of getting fleet insurance. Fleet insurance is essential for making sure that you avoid future financial crises.
Why Every Fleet Business Needs Insurance
The global fleet management industry is growing rapidly. One study shows that it will reach $34.63 billion by 2022. However, there are certain risks involved that you must prepare for.
If you thought fleet insurance was only designed to cater to large enterprises or multinational corporations, think again. Because if your business owns more than one vehicle you could qualify for a fleet insurance policy, and could save money by opting for this type of cover instead of insuring each vehicle separately.
Fleet companies recognize the importance of insurance. The demand for fleet insurance will grow to $107 billion in the next five years.
With some insurers you only need to own more than one vehicle to qualify for fleet insurance, while some others might require three or more for this type of insurance cover. There are a few considerations to take to heart when taking out fleet insurance and we are focussing on a few of these now.
Who Needs Fleet Insurance?
If your business model involves delivering goods or transporting people you will probably need fleet insurance. Fleet insurance can cover motorcycles, bikes, passenger cars, lorries and vans – or a combination of those vehicles.
It is best business practice to get at least three comparable quotes on any type of insurance in order to ensure you are getting value for your money. Fortunately, you can compare quotes online, which makes the process fast and easy.
For example, instead of having to contact different insurers one at a time, Quotezone enables you to complete one short form in order to compare quotes from a wide range of insurance providers.
Besides saving time and effort online when searching for insurance quotes, you can save money by also choosing the cheaper option that covers your needs. There is no need to pay higher premiums if you are receiving the same cover at a more affordable cost.
Levels of Cover Provided
There are three types of cover provided in fleet insurance that you can choose from. The fullest cover you can choose is called comprehensive cover. This is normally a higher premium and allows you cover in accidents, third-party, theft and fire. Depending on the insurer, windscreen cover and covering the cost of damaged or stolen belongings up to a specified amount can be included. Always ask if there are other add-on cover options you may need at an additional cost.
The second type of cover is Third-party, Fire or Theft (TPFT) which is pretty self-explanatory. If your vehicle is involved in an incident that causes damage to other people’s vehicles or property, you will be covered in this event. Cover is also provided for if your vehicle is stolen or damaged due to fire. This cover does not cover your vehicle’s repair or replacement cost if it is in an accident.
The last type of cover is the lowest level of cover and is the minimum level required by law, namely Third-party. As explained above, this insurance only covers damage to people or property by your vehicle. If you have the means to cover the damage or replace a vehicle after an accident, then this cover will suit you. It is sometimes the cheapest premium, since it is the least comprehensive.
Fleet Insurance Cost
Fleet insurance cover is generally discounted with the addition of every vehicle to the policy. This can be an added cost-saving benefit if you have chosen the cheapest insurer to go with. The administration hassle with fleet insurance is also less, as the insurance cover will normally include all vehicles covered in one policy, saving you both time and money.
Businesses and enterprises cannot afford to be without insurance and should always read through their policies properly to understand that there are exclusions to every policy.
To maximise on saving costs when taking out fleet insurance, consider paying annual premiums instead of monthly – this way you are covered for the entire year and you will not have to fret about lapses of insurance.
Your Fleet Business Needs Insurance
You can’t take risks as a fleet company. You need insurance to protect yourself. The guidelines listed above should set you on the right path.