Buy, lease or contract your fleet – what about insurance?

Running a fleet of vehicles can be an expensive proposition. But one way in which you can make significant savings is by taking out fleet insurance to cover all your vehicles. However, if you lease some of them, will they require special fleet insurance quotes or is the insurance already taken care of as part of the contract?

What is fleet insurance?

Fleet insurance is a smart choice when your business runs a number of vehicles. Dealing with one single policy is easier than dealing with a different policy for each vehicle and you can insure literally hundreds of vans, from light vans to Lutons.

Whether you’re in the haulage or courier business, undertake one-off jobs, or want to carry your own business items, fleet insurance has you covered.

You can be covered for third party, third party fire and theft or fully comprehensive. There are a number of additional facets of cover you may require including:

  • Employers and public liability
  • Breakdown cover
  • Replacement courtesy van
  • Windscreen cover
  • Use abroad
  • No claims bonus protection
  • Towing a trailer
  • Personal accident cover

Do I need insurance for lease or contract fleet vehicles?

It’s illegal to drive any vehicle without insurance and that applies to lease and contract vans and cars as well as those you own. Whether your vans are covered by a contract leasing agreement or a PCP (personal contract purchase), you’ll still need to get insurance as this won’t be covered in the agreement.

Most agreements require you to have fully comprehensive insurance. You’ll be covered for the cost of damage to your own and other vehicles, plus cover if your van is damaged by fire or stolen. However, you should consider some form of gap insurance for vehicles that you don’t own outright. This will cover you for the cost of the vehicle as new, even if it suffers significant damage, meaning you don’t suffer financially because of vehicle depreciation.

How can I reduce the cost of my fleet insurance?

There are a few simple steps you can take to cut the cost of your fleet insurance and ensure that all your vehicles have the right level of business cover, whether you buy, lease or contract your vehicles:

  • Make sure your named drivers have a clean record and consider taking out a telematics policy
  • Increase your voluntary excess
  • Keep the number of extras to the essentials and don’t include the nice-to-haves
  • Consider beefing up your fleet security: fit trackers and immobilisers and cover your garage with CCTV

How else can I make a saving on running a fleet of vehicles?

Taking out fleet insurance for all your vehicles can be a real time saver. There’s only one policy and one renewal date to worry about and all your vans will have the same level of cover. A specialist broker will deliver the right level of cover at the right price and you can check the small print to make sure it’s the right policy for your business.

Any fleet manager can make further savings when they opt for fuel card services. With discounts per gallon and performance reports to identify fuel efficiencies, you’ll make significant savings on your running costs.

Find out more at MyInsurance.Expert.

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