Fleet insurance can help you to comprehensively insure your fleet and offers you many different benefit packages. In the following article, you will learn about the advantages and disadvantages of fleet insurance, what additional insurance is available and what you should consider when choosing a suitable insurance policy.
Contents
What is fleet insurance?
Fleet insurance is a special form of car insurance that allows you to insure several of a company’s vehicles under a single policy. It is particularly beneficial for companies with a large fleet of vehicles, as it can simplify vehicle management and reduce costs.
What are the advantages of fleet insurance?
Fleet insurance offers numerous advantages, especially for large vehicle fleets. These include:
Cost efficiency
By bundling the insurance of several vehicles, companies can often benefit from lower premiums, as insurers often offer special discounts. In addition, administrative costs in the fleet are reduced if the fleet manager only has to manage one fleet insurance policy.
Flexibility
Fleet insurance policies can be flexibly adapted to a company’s changing requirements. Depending on your needs, you can easily add new vehicles to the existing policy . Vehicles that are no longer in use can also be removed. Insurance companies often reduce the amount of bureaucracy involved.
Scope of protection
Fleet insurance usually offers comprehensive cover, including third-party liability, partial and fully comprehensive insurance. Additional services such as breakdown assistance, replacement vehicles in the event of accidents or workshop service are often included in the insurance package. The vehicles in the fleet are thus comprehensively protected without major expense.
What are the disadvantages of fleet insurance?
Fleet insurance also has disadvantages that you should consider when making your decision:
High costs for small fleets
For very small fleets, the premiums for fleet insurance can be higher than the total cost of several individual insurance policies. The administrative effort and discounts granted for larger fleets often do not apply to the same extent here. This can increase the costs per vehicle. In addition, the selection of insurance policies for small fleets is often smaller. It can be more difficult to find good offers here.
Risk diversification
In the event of several claims within the fleet, the total premiums could increase as the risk is spread across the entire fleet. This can be particularly problematic if there are several accidents within a short period of time. In this case, the no-claims bonus of the entire fleet is affected. The insurance premiums can increase significantly as a result.
Limited individualization
Fleet insurance policies often offer standardized coverages that do not always fully cover the specific needs of individual vehicles or company requirements. While fleet insurance policies offer flexibility in adding or removing vehicles, the customization of individual insurance terms within the policy may be limited. This can be particularly relevant when specific cover is required for certain vehicles.
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What additional benefits are available for fleet insurance?
In addition to basic third-party liability, partial and fully comprehensive insurance, many insurers also offer additional benefits and supplements to extend the insurance cover in the fleet. These are some of the most common supplementary insurances within the framework of fleet insurance:
Roadside assistance and towing service
This supplement to fleet insurance offers support in the event of a breakdown or accident, including towing service, on-site repairs and, if necessary, replacement vehicles. As a rule, these services are available around the clock. This is particularly important for companies whose vehicles are also in use outside normal business hours.
Legal expenses insurance
Legal expenses insurance covers the costs of legal disputes that may arise in the course of fleet operation. This can be the case in the event of accidents, contractual disputes or fine proceedings. It offers legal advice and takes over representation in court, allowing companies to minimize legal risks .
Passenger accident insurance
Such insurance provides financial protection for drivers and passengers in the event of accidents, including medical costs, disability benefits and death compensation. It therefore supplements statutory accident insurance and offers additional protection for all occupants.
Extended cover for cargo and freight
The extended cover for cargo and freight covers damage or loss to the transported cargo caused by accidents, theft or other insured events. It also protects the company against liability claims that may result from loss of or damage to the transported goods.
Brake, breakage and operational damage insurance
This extended insurance offers protection against damage that is not only caused by accidents. It is particularly useful for companies with commercial vehicles and frequent goods transportation. Covered damage includes, for example, damage caused by sudden braking maneuvers due to poor load securing or overloading. Such an additional benefit also covers damage caused by technical failure, operating errors or incorrect driving behavior .
How do you choose the right fleet insurance?
Choosing the right fleet insurance is crucial for the comprehensive protection of your fleet. To find the best insurance for your needs, you should consider the following steps:
Analysis of demand:
- Vehicle types and usage: Analyze exactly which vehicle types are in your fleet. Differences in use, such as commercial use or long-distance transportation, can influence the choice of insurance.
- Scope of insurance: Determine what cover is necessary. In addition to the legally required liability insurance, you should consider whether partial or fully comprehensive cover is required, as well as other supplementary insurance such as breakdown assistance or cargo insurance.
Comparison of providers:
- Premiums and benefits: Get quotes from different insurers and compare both the premiums and the benefits they offer.
- Extensions and supplementary insurance: Think about what additional benefits make sense for your fleet and what insurers can offer you.
- Cost-benefit analysis: Check whether the additional services justify the extra price and whether they are actually needed. Comprehensive supplementary insurance may be more expensive, but it also offers more security for your fleet.
- Customer ratings and testimonials: Find out about the reliability and service of insurers. Customer reviews and testimonials on online platforms can provide valuable insights.
Check flexibility and adaptability:
- Contract conditions: Pay attention to how flexible insurers are when it comes to adjusting the policy. Can vehicles be added or removed without any problems? What about adjusting the cover during the year
- Future planning: Consider your future plans and how your fleet might develop. Insurance that can grow with your business is often the better choice
Accept counseling offers:
- Insurance brokers and advisors: They can use their expertise to help you find a customized solution that is tailored to your specific needs.
- Personal discussions: A personal discussion with an advisor can often provide clarity and ensure that all questions are answered comprehensively.
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How many vehicles do you need for fleet insurance?
As a rule, insurers offer fleet insurance for companies that own at least three vehicles . However, this can vary from provider to provider. Some insurers offer special conditions for very small fleets or even sole traders who use several vehicles.
You should therefore check the insurer’s minimum requirements and make sure that your fleet meets them. You should also bear in mind that the cost of fleet insurance can often be higher for small fleets.
How much does fleet insurance cost?
The premiums for vehicle fleet insurance vary greatly and cannot be set at a flat rate, as the insurance premiums are calculated individually for each fleet. Various factors influence the amount of the premiums, including
- Type of vehicle: Different types of vehicles such as cars, trucks or special vehicles have different premiums.
- Fleet size: A larger fleet can receive discounts, but can also result in higher overall premiums.
- Claims history: The claims history of the fleet or individual vehicles has a direct impact on the premium amount.
- Scope of insurance: The desired scope of insurance, such as third-party liability, partially comprehensive or fully comprehensive, influences the costs.
- Deductible: The amount of the excess that the policyholder pays in the event of a claim can reduce premiums.
In general, the cost of fleet insurance is expected to rise over the next few years. The reason for this is the rise in repair costs. Comprehensive risk prevention can help you to keep the premium low.
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