How many vehicles do you need to be eligible for fleet car insurance?
Fleet car insurance can often be a cheaper and easier alternative for companies that run lots of company cars. Rather than arranging individual policies for each vehicle, a fleet policy combines them all under one, with only one premium to pay and one renewal date to remember.
Four or five vehicles are required before you will be considered for a small fleet insurance policy and to be honest you would not benefit unless you had this number of vehicles.
Fleet policies operate on a declaration basis, which means that at agreed time intervals you must declare what vehicles you have been running during a specified time period. Any adjustments to you premiums are then made. When running a fleet of any size, this feature is ideal, as your insurance certificate covers any vehicle owned by the copany, so there is no requirement to obtain covernotes to tax cars or arrange cover if you are purchasing a new car for the fleet.
Most fleet policies will be arranged on a any driver basis, usually with a minimum age restriction, i.e. over twenty fives or over twenty ones. However, any drivers with specific adverse claims or driving convictions history must be declared up front. For example, if an employee has been convicted of drink driving in the past, this must be declared to the insurance company to seek authorisation that they may be covered under their policy. The any driver cover is there to cater for drivers without any adverse driving history.
Another point to consider with a fleet car insurance policy, is that each driver will not be earning their own no claims bonus and in fact, any accidents that they have under the fleet policy will impact the policy as a whole. This may result in increased premiums across the board as it will go down on the fleet policies “claims experience”. It is this “claims experience” that gets taken into account when a fleet insurance policies premium is calculated.
On this note, if an employee left the company or no longer had use of a company vehicle, most insurers these days will allow them an introductory discount, equivalent to the appropriate no claims discount level, on written confirmation of claim free company car driving, from a past or present employer.