Motor Fleet Insurance – Know How It Works

Motor Fleet Insurance – Know How It Works

Motor fleet insurance is a typical automotive insurance that will cover more than three vehicles or a fleet of automobiles under a single policy. In case, you have three or more vehicles of any type, instead of insuring them individually, you can take this policy to avoid the hassles of handling different policies for each vehicle. This article helps you better understand the functionality of this policy, its benefits and a few other things.

Motor fleet insurance policy is designed to cover a number of vehicles under one policy. Different vehicles like cars, vans, motorcycles, horseboxes, motorhomes, etc. can also be included in the fleet for insuring. Though the number of vehicles may vary based on the insurance provider, in general, motor fleet insurance is applicable to a fleet of 3 or more vehicles.

As it is legally obliged to have enough insurance cover for every motor vehicle which is in use or left on a public highway, taking motor fleet insurance for your vehicles serves the purpose.

Who requires motor fleet insurance?

Contrary to a general assumption that motor fleet insurance is useful only to few businesses, it will serve any individual who drives many vehicles. Even big families who have at least five vehicles to insure can opt for this insurance to avail its benefits.

When it comes to businesses, any company which uses more than three vehicles for their business operations like cars for business travel, cabs to transport employees, vans for delivery purpose, director’s personal vehicle under the company’s name, and so on, could benefit from the fleet insurance.

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Though this insurance is helpful for most of the businesses, for few businesses such as courier and delivery firms, taxi services, car rentals, firms providing employees with business cars, security companies, etc. it is very valuable. Based on their fleet size they can choose a small fleet insurance for 3-12 vehicles and large fleet vehicles for 13 and more vehicles.

Coverage offered by the policy

When compared to individual auto insurance, motor fleet insurance is a comprehensive policy which offers wide coverage. A typical policy covers third party thefts and damages, fire accidents, windscreen insurance, breakdown assistance, theft of keys, medical expenses to the injurer, legal costs, etc. If required you can include cover for goods, replacement vehicle costs, uninsured loss recovery, etc. based on your ability to pay premiums and the options available with the insurer.

This insurance policy also offers cover for the driver, but, based on few conditions like licensed drivers, drivers above 17 years, good driving history, etc.

Factors that could affect the price of the policy

Every insurance company looks at different factors for deciding the fleet insurance eligibility. However, there are few common factors which affect the policy price. They are the size of the fleet, type of vehicles, nature of the business, combination of different vehicles, age, condition and mileage of each vehicle. In few cases, the fleets with younger drivers and the scope of the driving restrictions requested will also affect the premium.

Motor fleet insurance is beneficial in two ways – firstly, it is cost effective and secondly, it reduces the hassle of handling different insurance policies. If you are planning to take the motor fleet insurance policy, it is good to take help of an insurance brokerage firm. A reputed insurance broker will have access to many insurance companies and can effectively suggest you with the right kind of policy that suits your needs. They will assist you at every step and also enables you to get the industry’s best price. They will take care of policy renewals and also help you to get the cover quickly.

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