When you start a new business, it is doubtful that you would have enough money to purchase all the cars that you would need to carry on your business conveniently. What you would most likely do is purchase one or two vehicles and then add more vehicles to your fleet as your business grows with time.
What happens with this “grow-your-fleet-gradually” method is that as you have to purchase new insurance protection for each new vehicle you acquire and add to your fleet of vehicles. And eventually, you will end up with a whole bunch of insurance policies for the various vehicles you have purchased.
Vehicle fleet insurance saves you from this cumbersome kind of arrangement. Instead, it allows you to buy insurance policies jointly for all the vehicles in your fleet as one. All of the vehicles would therefore be under the same insurance coverage.
Vehicle fleet insurance is very useful for business owners. In fact, every business should have a vehicle fleet insurance policy, especially if the vehicles are very crucial to the business, as with a haulage/trucking business or any other business that requires using vehicles for delivering products or services.
Vehicle fleet insurance is not limited to commercial establishments alone, as individuals can also find it very useful. For instance, if you have a large family where almost everyone owns and drives their own car, you would find vehicle fleet insurance very useful for covering every vehicle owned by the family. Also, with vehicle fleet insurance, you can save some money on insurance for young vehicle drivers in the family.
Benefits of vehicle fleet insurance
- It helps to save money: When you choose a fleet insurance policy instead of and individual vehicle insurance policy, you would be able to save a lot of money through discounts and cheaper premiums.
- You can insure your drivers, too: Fleet insurance also allows you to add your drivers to the insurance policy, so that they are covered and can be taken care of or compensated should they sustain any bodily injuries in an accident.
Types of vehicle fleet insurance
There are three major types of vehicle fleet insurance-:
- Third party only: This type of policy covers only damages done to third parties. For instance, if one of your vehicles runs into another person’s vehicle and damages it badly or leaves the driver of that other vehicle with serious injuries, this kind of vehicle fleet insurance policy would cover only damages done to the other party, not to you.
- Fire and theft: This is type of vehicle fleet insurance covers for theft of any of the vehicles in your fleet as well as any damages caused by fire.
- Comprehensive insurance: This is an all-inclusive package and the most recommended for anyone who is really serious about getting insurance protection for their fleet of vehicles. However, many people shy away from it because it is costlier than the other forms of insurance mentioned above. Comprehensive insurance would cover for damages to your vehicles, your drivers as well as third parties.
Vehicle fleet insurance add-ons
Some insurance providers offer some additional services when you insure your vehicles with them. These added services are known as add-ons. However, the add-ons you would get depend on the premium you pay.
Whilst some people choose to reject add-ons in order to reduce their premiums, some others choose to embrace them for a more robust package. Some of the add-on’s you might get with your vehicle fleet insurance include:
- Vehicle breakdown cover: Should your vehicle break down at any time, the insurance company would assist you with either repairing the vehicle or towing it to a safe place where it can then be repaired. Essentially, they provide emergency response services for you in case of a break down.
- Legal expenses benefit: If there are any legal expenses to be incurred as a result of damages done, the insurance company would be responsible for offsetting such legal bills.
- Open drive-: Normally, when you undertake a vehicle fleet insurance policy, only the drivers included in the policy are permitted to drive the vehicles. Should a random driver outside the ones on file be behind the steering when an accident occurs, the insurance company won’t pay any compensation. However, with an open drive clause, the insurance policy holder can assign specific category of persons to drive the vehicles.
Cost of vehicle fleet insurance
How much you will spend on vehicle fleet insurance hinges on various factors. You should understand some of the things insurance companies consider when calculating your insurance premium for vehicle fleet insurance. They include-:
- Type of vehicles
- Cost/value of the vehicles
- Past record of the drivers
- Level of coverage
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