To reduce their insurance costs, many companies opt for flexible fleet insurance plans to insure all their vehicles. A fleet insurance policy enables the driver to drive any vehicle that you own, provided the requirements set by the fleet insurance company are met.
Some important criteria laid down by most insurance companies are:
a) If is advisable to have drivers who are over 25 years old because premiums charged by insurance companies on young and inexperienced are higher when compared to experienced driver.
b) The driver employed must hold a valid UK driving license. If the driver holds the UK license for a period of more than two years, then you get good discounts on your fleet insurance policy.
c) Most insurance companies will reduce your premiums if you use a limited number of drivers to drive your vehicles.
d) If the driver employed has a bad driving record, then insurance companies are likely to hike the premium amount. However, the amount of increase in the premium will be restricted to increased premium for that particular driver.
So find out the history of the driver before you hire the driver to drive your vehicle. Also, hiring an experienced driver can help in reduction of the premium that you need to pay.
Today, competition amongst insurance companies is high and most insurance companies are coming out with flexible fleet insurance policies to attract and retain their customers. The lowest premium on fleet insurance policies is for policies that offer Third Party Only cover. You can get a Third Party cover on your old vehicles that you rarely use.
When you opt for Third Party Fire and Theft cover in your fleet insurance policy, you will get Third Party Only cover and protection from loss due to fire or theft of your vehicle. You can opt for fire and theft coverage if you have business in high risk areas, where security is an issue.
I suggest you opt for comprehensive insurance if you have brought a new vehicle, or if the vehicle is expensive. Comprehensive insurance will provide complete insurance cover for your vehicle and is suitable for people who prefer peace of mind over money.
You can decrease or increase the amount of policy excess that you need to pay on your fleet insurance policy. When there is an increase in the policy excess then you have to pay lower premiums on your fleet insurance policy. However, if there is a decrease in the policy excess then you will have to pay higher premiums on your fleet insurance policy.
When all the vehicles are insured under a single insurance policy, the risk management of the fleet that you own becomes easier. A fleet insurance policy will also ensure that all vehicles are provided with adequate insurance cover. If the vehicle that you own is used for varied purposes, then a fleet insurance policy will ensure that your vehicle meets the guidelines set up by the law.
The best part about getting flexible fleet insurance for your vehicle is that you can opt for different types of coverage for each vehicle that you own. Therefore, I suggest you speak to your advisor before you get a fleet insurance policy.
By James Clapton