Fleet insurance provides several benefits to fleet managers and owners, but it’s important to understand what this insurance entails before signing up.
Third-party fleet insurance policies cover liability and/or physical damage to another vehicle in an accident you cause, as well as your vehicles if they are damaged or stolen, but there are some limitations you should know about before committing to a policy.
Here’s what you need to know about third-party fleet insurance policies to find the best fit for your business needs.
Why Do Businesses Use Third-Party Fleet Insurance?
Businesses use third-party fleet insurance to make sure they have a safety net in place should anything go wrong with their vehicles.
Fleet owners often operate vehicles loaded with expensive equipment, which have been outfitted for heavy-duty work—and these vehicles are subject to several risks.
The police may confiscate a vehicle due to a violation of traffic laws, an accident or an arrest could damage your vehicle beyond repair, vandalism could result in you having to replace expensive parts or even your entire vehicle altogether, and driving conditions could be so bad that you risk serious injury if you aren’t properly equipped.
These factors make it extremely important for fleet owners to purchase quality third-party insurance policies.
Who Should Get the Coverage?
Any company in charge of a fleet vehicle should make sure they have a policy on file. This is extremely important for protecting your financial liability in business that may arise from accidents or incidents involving your vehicles.
It’s also extremely important to protect yourself, especially if you happen to be on vacation at the time of an accident and have some other party involved who may try to sue you, even though it isn’t your fault.
If you are sued because of an incident involving one of your fleet vehicles, it can lead to fines, legal fees, and income loss while dealing with court proceedings.
One Vendor is Easier to Work with Than Many
Finding and working with a third-party fleet insurer may seem like it will add a lot of work to your plate. But, what you might not realize is that having just one fleet or van insurance vendor means all your maintenance and repair needs are handled in one place.
And when all of those needs are provided by one company, dealing with them becomes much easier for everyone involved. Whether it’s negotiating rates or handling repairs, you can count on having a singular third-party provider for your small business needs.
When a single provider takes care of all your needs, you don’t have to worry about tracking down one company for maintenance work and another for insurance. Just call up your fleet insurer once a month, review what happened that month with regard to maintenance or repairs, and make any necessary adjustments moving forward.
How Can a Business Save Money on third Fleet Insurance?
Choosing a fleet insurance policy is one of the most important yet difficult decisions a fleet owner has to make. Fortunately, you can take steps to ensure that you get only what you need without paying for things that aren’t necessary.
For example, insurance companies often offer reduced premiums if your vehicle(s) qualify for their anti-theft packages.
These packages generally include high-end alarm systems and tracking devices, which will only set you back £100 per car. Of course, if your vehicles don’t qualify for these programs—or if you don’t want these upgrades—you can skip them.