If you run a business, it makes sense to take out a public liability insurance policy. This form of insurance protects your business in case the unexpected happens. If you are in the transportation industry, you definitely need a fleet insurance policy. This is because you can’t operate your vehicles without insuring them. Contrary to what some people think, vehicle insurance is not rigged against the vehicle owner. There are many benefits for you when you insure your vehicles. You also have a number of options, so it is up to you to choose the policy that is best suited to your business. If you have more than one vehicle, it makes to take out the fleet insurance policy. Below are some things you should know about this policy and why it is in your interest to go for it.
Understanding Fleet Insurance
Fleet insurance is a form of insurance policy that covers the different vehicles that you own especially if you run a commercial transportation business. Fleet insurance is a multi-vehicle insurance policy, and it is the right one for you if you own two or more vehicles.
How Fleet Insurance Works
With this form of insurance, you simply take out only one insurance policy to cover the different vehicles in your fleet. For instance, you probably have trucks, taxis, buses and minivans in your fleet. Instead of taking out individual policies for each vehicle, you put them together as one fleet and take out only one policy to cover the lot. This is what fleet insurance entails and the only condition for this is that all the vehicles are registered under the same business name.
Types of Fleet Insurance
Typically, fleet insurance falls into three categories. These are:
- Third Party Only
- Third Party Fire and Theft
- Fully Comprehensive.
Below are the features of these forms of fleet insurance.
Third Party Only
If you take out this policy for your fleet, it only covers the other party in case of accident. Since you and your driver are not covered under the “Third Party Only” insurance policy, it follows that you will bear the cost of repairing your car or treating your driver in the event of an accident. It is the cheapest form of fleet insurance, and it is also the minimum form of cover.
Third Party Fire and Theft
This type of insurance offers some extra cover that the “Third Party Only does not offer”. In addition to covering repairs and injury to the third party, this form of insurance protects the policy holder in case the car is stolen or damaged by fire.
This is the most advanced form of insurance cover in the market. As the name implies, comprehensive insurance means you are fully covered. This form of insurance protects the policy holder in cases of fire, theft and accident. It also covers the other party as well and this is why it is an expensive policy.
Benefits of Fleet Insurance
Among other benefits, fleet insurance offers you lower insurance premiums, one cover for different vehicles and concessions based on the number of vehicles in your fleet. This policy also offers you convenience in the sense that you have just one renewal date for all the different vehicles in the fleet. With fleet insurance you also get concessions in cases where insurance firms are reluctant to cover “difficult vehicles or problem divers”. This is because the “difficult vehicle or the problem driver” are covered in a package that includes other “safe vehicles and safe drivers”.
For people in the commercial transport industry, fleet insurance makes a lot of sense. This form of insurance is also recommended for companies with many cars in their fleet even if these cars are not used for commercial purposes.