How much does fleet insurance cost UK? The premium of your total fleet insurance depends entirely on the level of coverage you purchase and the type of vehicles and drivers you have in your fleet. When you apply for fleet insurance, you will be asked for a few details about your vehicles, all of which will affect the premium you will be offered. Factors that affect costs include vehicle age, annual mileage, driver age, driving history, and location.
How Much Does Fleet Insurance Cost UK?
The savings you can make with fleet insurance can quickly add up to thousands of pounds, but the cost and savings depend on three main factors: the number of vehicles, the cost of insuring them individually, and the percentage discount you receive for safe-keeping them as a fleet. For example, an owner can save £4,500 by insuring a fleet of 10 vans that cost £1,500 each to insure, assuming a 30% fleet discount. See more examples below.
|Fleet Discount Savings
|3 vehicles @ £500 per vehicle
|5 vehicles @ £1,000 per vehicle
|10 vehicles @ £1,500
What should you pay attention to when buying fleet insurance?
If your drivers also use fleet vehicles for private use, for example after work or on weekends, make sure your policy also covers social, domestic and recreational use. Here are also some features to look for in a quality policy:
- 24-hour helpline – Access a 24-hour helpline if you need assistance following an accident or other claim situation.
- Breakdown service: 24-hour roadside assistance if one of your vehicles breaks down.
- Accident recovery: Transport to a safe location/repair shop if a vehicle is involved in an accident and cannot be driven off safely.
- Continental Coverage: Full insurance protection when driving abroad in Europe.
- Uninsured Damage Recovery: Refund of money you paid after a car accident that was not your or your employee’s fault and is not covered by your fleet insurance policy.
- Windshield Cover: Repair or replace chips and cracks in vehicle windscreens.
- Similar Vehicle Replacement – To keep you on the road if one of your vehicles is being repaired after it has been damaged in an accident, for example.
- New-for-Old Coverage: A new replacement of the same make and model if your vehicle is stolen and not recovered or written off due to damage.
How can you save money on fleet insurance?
- Hire good, mature drivers: It costs more to insure younger drivers or people with bad driving habits. Keep this in mind if you want to save money on fleet insurance. “Every driver” policy generally groups drivers by age: 21+, 25+ and 30+ to delineate different levels of risk.
- Encouraging safe driving: Building a motor vehicle with no claims premium can save 50% or more on insurance. Encourage your drivers to drive safely and without time pressure to avoid accidents. Fleet-rated drivers can get a discount.
- The designated driver instead of a random driver: Designated driver policies tend to be cheaper, although they may not be practical if you have a large fleet of vehicles or high employee turnover.
- Type of Coverage: If your vehicles are old and worthless, you may decide that a lower level of cover is sufficient for your needs, but in general it is better to get comprehensive cover. It is often not much more expensive than TPFT or TPO coverage and some fleet insurers only offer comprehensive coverage.
- Secure Storage: Parking your fleet in a locked garage or storage facility should lower premiums as there is less risk of theft.
- Buy vehicles with a low insurance group rating – Some vehicles cost 2x, 3x or more to insure compared to others.
- Shop around to get multiple quotes each year – go to a comparison site to make it easy; you can fill in a quote form here
- Increase the voluntary deductible – A higher deductible generally means a lower premium, but the discount you get may be insignificant compared to the extra deductible you have to pay in the event of a claim.
- Pay your premium upfront instead of monthly: Unless your providers charge a 0% APR on monthly payments, saving annually can save you up to 19% or more.
- Don’t Auto-Renew: Insurance companies don’t often reward loyalty, so check your current insurer’s prices for a new policy and other options on this marketplace before renewing. You may be able to use these quotes as leverage to negotiate a lower renewal price with your current provider.
- Buy early: Our research shows that car insurance purchased 3 weeks before your policy commences date is the cheapest. Last-minute shopping is a surefire way to pay a higher premium all year round.