What Are the Pros and Cons of Business Fleet Insurance?

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When it comes to your business, you want to ensure that everything is as efficient and reliable as possible. A fleet of vehicles can help you do just that—but only if those vehicles are protected by insurance through specialist brokers such as https://www.bluedropservices.co.uk. If you’re a business owner and have multiple vehicles, business fleet insurance is worth considering. It could mean more savings on your operational expenses and more peace of mind for the future.

What is business fleet insurance?

Business fleet insurance covers your business’s fleet of vehicles used for commercial purposes. The purpose of this insurance is to keep your business on the road by covering multiple vehicles and drivers under one easy-to-manage policy.

Before you sign up for the policy, it’s wise to weigh the pros and cons so that you can make an informed decision. Our team has put together a list of the pros and cons of business fleet insurance, so you can make the right choice for your business.

Pros

  • Offers and discounts

Many fleet insurance companies offer discounts based on the number of vehicles insured. As you add vehicles to your policy, you’re likely to receive a higher discount per vehicle.

  • Effortless admin

A business fleet policy streamlines your administrative tasks by combining all of your vehicles under one policy. So you can easily contact your insurance provider for assistance when you need it. And it’s easier to renew or change your policy when everything is under one policy. This results in less paperwork, less follow-up, and much more efficient administration.

  • Easy and hassle-free claims

When an unfortunate accident occurs, you’ll want to ensure that your insurance company settles your claim promptly and fairly. Purchasing business fleet insurance can offer you protection for your employees, your business, and yourself by covering costs without any unnecessary headaches.

  • Protection against driver turnover

There may be times when a business experiences high employee turnover. Fleet insurance helps you avoid having to change your business’s insurance policy every time an employee joins or leaves the team. By recruiting drivers who meet your insurer’s requirements, you can extend your policy to them without having to worry about changing your insurance coverage.

  • Any driver option

Your fleet can be insured so that anyone with your permission can drive your vehicles. If you ever need to switch vehicles or borrow a vehicle at short notice, this makes life a whole lot easier. Unlike some providers, we offer business fleet insurance that offers a comprehensive ‘any driver’ policy, including young drivers.

Cons

  • Young or inexperienced drivers increase the cost

When you employ drivers under 25 years old, your fleet insurance costs inevitably increase. This is because young, inexperienced van drivers are more likely to get into accidents than older, more experienced drivers. Insurers charge higher premiums to businesses with more high-risk drivers.

  • Discounts are lower for smaller fleets

If you’re looking to save money on your insurance, it’s helpful to know that the more vehicles you have, the better your discount will be. Small fleets (2-5 vehicles) might not require business fleet insurance. While you will still get a discount per vehicle, you will receive less than if you had 10 or more vehicles. Consider comparing the cost of fleet insurance versus insuring each vehicle separately. We know, we know, it’s a lot of paperwork to fill out! But if you have a small fleet and a few accident-prone drivers, this might be a good way to save on fleet insurance.

  • Terms and conditions apply

When you sign up for a business fleet insurance policy, make sure you read the terms and conditions carefully. You may be surprised to find that certain policies exclude the private or personal use of insured vehicles. It’s always a good idea to ask your insurer if you have questions about how your policy works.

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