A motor fleet comprises three or more vehicles and, besides private drivers who own more than two cars, are distinguished as those cars belonging to companies which provide cars for their employees; trucking, car rental and bus companies; taxis, courier vehicles and limousines; and security firms.
A commercial fleet insurance policy is therefore vital for any company operating more than three vehicles. Special fleet insurance policies exist, which make insurance of multiple vehicles much easier to handle in terms of time saving – there is only one date to remember for renewal, thus saving on paperwork and administration costs – and all vehicles are covered in one policy. If you employ the services of an insurance broker – which is highly recommended – to advise you on every aspect of your motor fleet insurance, then he would send you a renewal reminder once a year, together with any updated information and offers of a better or cheaper fleet insurance quote.
As a fleet operator, you will need to have a policy which is flexible, thus allowing you to add in or remove vehicles during the term of the policy. Clearly, should you add a vehicle or vehicles, the premium (the cost of the insurance policy) will be raised; and likewise, should you take a vehicle off the policy, your premium will be lowered, as the premium is calculated on an individual vehicle basis. The amount of cover for each vehicle in your commercial fleet insurance policy will also be calculated separately, so that older vehicles may be insured only for third party cover, while newer vehicles will need to have comprehensive cover. The fleet owner has the right to decide on the level of cover for each of his vehicles. Note that there is no limit to the number of vehicles which can be covered in this type of policy – and one may even add one’s own personal car.
When taking out motor fleet insurance, there are various options and extras which may be added to the basic policy, such as coverage of legal fees and expenses, which may be huge if one of your vehicles is involved in an accident. Another recommended option is to have coverage which ensures that you will be given a replacement vehicle for a certain period of time, to use in place of one which may be damaged or written off, thereby allowing your business to carry on without interruption.
At the time of renewal of your policy, either your fleet insurance broker or your insurance company will send you a form stating the number of vehicles which are covered by the policy, the number of claims (if any) which were made during the preceding year and any amounts paid out (also, if any) under the policy as a result of claims having been made. All this information is used in the assessment of the risk your company may pose and is therefore a tool the insurance company uses to calculate the renewal costs of a new premium for the coming year.