Almost all businesses use commercial vehicles to run their business operations efficiently. Like any other physical business asset, these vehicles are very valuable and must be insured. When it comes to insuring commercial vehicles, business owners have two options. They can get an individual insurance policy for each vehicle or cover all vehicles in one comprehensive policy. In this article, we will discuss this topic in detail and see which one is better.
One thing is for sure, you must insure your commercial vehicle. In accordance with the Continuous Insurance Compliance Law (CIE), all registered vehicles must have valid insurance at all times. This law in the UK makes it an offense to keep vehicles without insurance and a huge penalty will be imposed on vehicle owners for not having insurance for their vehicles.
Although this law was not introduced in Northern Ireland, it is still mandatory to have adequate insurance cover for any motor vehicle used or left on public roads. So if your business uses vehicles, it is legally necessary to have vehicle insurance.
Vehicle fleet insurance policy
Now that we are clear about the importance of the insurance policy, we must look at the options. As discussed above, we can take individual insurance policies or opt for a single policy, where multiple vehicles of any type are covered. Also called vehicle fleet insurance, the latter is a good option for businesses that have four or more commercial vehicles. However, the first option (individual insurance policy) is suitable for businesses with one or two vehicles. If your business has more than three vehicles, consider choosing vehicle fleet insurance. Here are its benefits.
Benefits on individual policy
There are many benefits of a fleet insurance policy over individual vehicle insurance. This policy simply ensures that each and every company vehicle is described in a single policy.
Avoid the Hassle of Managing Different Insurance Policies – Fleet insurance not only provides the benefit of covering all vehicles under one policy, it also helps you stay away from the hassles that arise from managing multiple insurance policies. You do not have to worry about the renewals of each and every one of the individual policies of the different vehicles. Fleet insurance is easy to manage: all vehicles will have a single renewal date; single set of options and conditions; same process to claim, etc.
Provides Insurer/Driver Cover – Many fleet insurance policies also cover the insurer/driver, which is a must in today’s environment. There are also cost implications for fleet vehicles with younger drivers. Therefore, premium rates may depend on the extent of the movement restrictions requested.
Saving time and money: Vehicle fleet insurance provides great benefits in terms of money and time. Since many vehicles are covered on a single policy, the premium will likely be less than the sum of the premiums of the individual insurance policies. Since all vehicles are covered by one policy, you can save a lot of time tracking and maintaining multiple policies.
Get better deals from reputable brokerage firms
It is always better to approach reputable brokerage firms when planning to purchase auto fleet insurance. They will have contacts with many insurance companies that offer car fleet insurance. Remember, not all companies offer vehicle fleet insurance. These brokerage firms compare the quotes of various companies that offer this insurance and tailor the policy to the needs of your business.
Having understood the benefits, it is wise to choose a vehicle fleet insurance policy for your business. Depending on your business requirements, you need to ensure adequate coverage for your vehicles.