It is not easy to manage a fleet of business vehicles.

Apart from managing maintenance and your drivers, fleet managers also need to have the safety and protection of the vehicles on their list of priorities. To eliminate many risks lurking around your fleet, it is essential to have suitable fleet insurance.

Fleet insurance can protect all of your vehicles under the one policy. It can be more affordable than having individual covers for each vehicle. One renewal date van help minimise administration and management and allow different drivers to drive many different vehicles in your fleet.

When picking suitable coverage for your fleet, ponder over the risks associated with the types of vehicles in your fleet. You can use history of mileage and past accidents as a guide for your requirements.

However, not all businesses know when to move from an individual commercial vehicle insurance policy to fleet insurance. This is an important consideration.

Here are some scenarios when opting for fleet insurance can be beneficial.

When You Have More Than Two Vehicles In Your Fleet:

You can continue to use a single-vehicle policy unless you have at least two or more business vehicles. Once you have multiple commercial vehicles it is worth comparing individual policies vs a combined fleet policy. Typically, the more business vehicles the more attractive commercial fleet insurance can be. It can cover all vehicles under one policy and it also leads to several benefits.

For example, you will have more streamlined vehicle management and administration process as all your commercial vehicles will be under the same policy, with the same renewal date, provided by the same broker.

Apart from that, having all vehicles on one policy will remove the administration hassles when it comes to renewal, filing for a claim or updating details.

When You’re Looking For Affordable Insurance:

If you are looking to save on the cost of insuring several vehicles, evaluating Fleet insurance may be worthwhile. It can be cheaper per vehicle than opting for individual insurance policies per business vehicle.

When You Are Looking For Flexibility:

Fleet insurance can provide a greater degree of flexibility, especially when it comes to using the vehicles. For example, rather than appointing a specific driver for each vehicle, fleet cover generally allows you to pick any of your qualified drivers or employees to drive each insured vehicle.

How To Reduce The Cost Of Your Fleet Insurance

So you appreciate fleet insurance may be worthwhile if you have two or more vehicles in your fleet.

However, if you are like most small business owners, you are also looking to save your business insurance.

Here are some tips to do that with commercial fleet insurance.

Use Skilled, Trained Drivers:

First of all, hire trained and skilled drivers where possible. This is because the safety of your vehicles is largely determined by their driver. The less accidents, the lower your insurance rates can be.

If you and your drivers have a clean driving record, you can often obtain large discounts for fleet insurance.

On the other hand, unsafe and untrained drivers can force you to have to pay more for fleet cover.

Consider Raising Your Deductibles:

A deductible, or excess, is an amount you pay out of pocket if you claim. If you are prepared to pay more out of your pocket, your fleet premiums are typically lowered by the insurer.

Ask For Multiple Fleet Quotes:

Many insurers offer Fleet insurance, giving you many options to choose from. It also allows you to choose a reasonable rate among them, especially if you have not had many claims. Shop around for multiple quotes. Luckily, a good commercial insurance broker can help you compare price and cover benefits.

Consider Vehicle Mileage:

Lower mileage can mean lower rates. The more you drive, the more expensive your premiums can be. If possible, the routine routes of your fleet can be analysed to lower the premium costs.

See if you can reduce the driving distance by reorganising driver’s routes.

We hope we have helped explain when fleet insurance may be useful, and also, how to save on fleet cover.

What do you think? Let us know by commenting below!

Disclaimer:

*Important: Cover may be available subject to meeting insurers underwriting criteria. Some of the covers listed may or may not be available or may have limitations or exclusions. Cover inclusions vary significantly from insurer to insurer. DO NOT rely upon the above. Check your policy schedule carefully for inclusions and exclusions and limitations. Talk to a business insurance broker for more information.

Author Bio:

Romit Malhotra is the brand representative of Smart Business Insurance, a leading Australian insurance broker. A big foodie, he loves to travel the world. Also, a diligent businessman, Romit likes to pen down his thoughts on related topics whenever he finds some free time.