HGV Fleet Insurance

Buying fleet insurance, if you have several vehicles to insure, might be an attractive proposition; but there are disadvantages, as well as advantages, in buying this type of policy.

Perhaps you would like to read through the factors below before deciding on your best option; it is certainly not an exhaustive list, and some of them may not apply to your business. Also; every policy is different, so some of these benefits and drawbacks may well not apply to your chosen insurer. However, they may be worth considering before you click the link above, and start getting quotes to compare:

Advantages of buying fleet insurance

• Cost-effectiveness: it is usually cheaper than insuring each vehicle individually. This is because insurers may offer discounts for a large number of vehicles.
• Simplified administration: it could allow the company to manage their insurance policies in a more streamlined manner. With a single policy, vehicles can be added or removed as required, reducing the administrative burden of managing multiple policies.
• Improved risk management: the right policy can help the company to better manage it's risks. Insurers often help fleet policyholders, such as access to driver training programmes and safety audits, which can help reduce the likelihood of accidents and claims.
• Improved cash flow: with some policies, the company can spread the cost of insurance over the year, which can improve their cash flow compared to paying for individual policies, upfront.
• Enhanced negotiating power: a company with a large fleet may have more muscle when it comes to securing favourable rates and coverage terms with insurers.
• Reduced paperwork: Fleet insurance can cut the amount that is necessary to manage insurance policies for multiple vehicles; saving time and reducing the administrative burden.
• Improved risk profiling: the company can gain better insights into their potential issues, and take measures to mitigate them, and improve their safety record; which can lead to lower premiums in the long run.
• Improved claims handling: insurers may offer a dedicated service, which can streamline the process and reduce the time, and effort, required to process them.Improved claims handling: Fleet insurance policies may offer dedicated claims handling services, which can streamline the claims process and reduce the time and effort required to process claims.
• Greater peace of mind: it can be comforting to know that all vehicles are covered under a single policy; and that there is enough of that cover to meet expected business needs.
• Access to value-added services: extras, such as telematics and driver monitoring, may be offered. Benefits like these can often help a company to improve their safety record, and reduce accident risks.
• Help with compliance obligations: in other words, making it easier for you to to meet regulatory, and legal, requirements regarding insurance cover, for your commercial vehicles.
• Potential for improved driver behaviour: some policies may come with incentives for safe driving practices. These, in turn, can lead to improved driver performance; and a reduced risk of accidents.
• A simplified renewal process: continuing with a policy can be easier and faster, as the company only needs to consider a single one, rather than, perhaps, many.
• Better claims data: insurers that can provide statistical information about accidents, and other risk events, can help the company to identify trends, improve management practices, and lower the chance of future claims.

Disadvantages of Fleet Insurance

• Higher excesses: fleet insurance policies may have higher excesses than individual policies. This means that the company will need to pay a higher amount themselves, in the event of a claim.
• Limited flexibility: they may be less adjustable than individual policies, regarding the terms and conditions; which can make it harder for the company to tailor their policy, to meet their specific needs.
• Increased risk of underinsurance: this is because the company may not, accurately, estimate the total value of their fleet when taking out the policy. This can lead to a shortfall in cover in the event of a claim.
• A shared claims record: if one, single vehicle has a high number of accidents, that could push up the premiums for the entire fleet.
• Limited customisation: Policies are often designed to be more general in nature; which can make it difficult for companies with unique needs, perhaps for particular vehicles or usages, to fully adjust their cover.
• Possibly higher premiums: whilst fleet policies can be more cost-effective, that in not invariable. In some cases, the premiums may actually be higher than those for individual policies; especially if the company has a poor claims history.
• More stringent underwriting: Insurers may be more keen on looking at driver qualifications, and safety records; which can make it more difficult for some companies (especially if they employ younger, or les experienced staff) to secure cover.
• Loss of control over claims: the insurer may override the company's ability to negotiate; and settle; disputes, on their own terms.
• Potential for higher policy excesses: since the total sum insured can be very high, the amount the company has to pay for each claim may be higher, too, than it would be for a policy for an individual vehicle.
• Potential for premium hikes: If the company experiences a high number of claims or other adverse events, their fleet insurance premiums may increase significantly; at which point shopping around for many individual policies could be a real problem, at short notice.
• Limited flexibility for individual drivers: they could find their ability to choose their own cover levels or make changes to the policy severely curtailed.
• Complex claims handling: they can be more involved than individual ones, with multiple parties involved; which can increase the time and effort required to process and settle them.
• Higher risk of fraud multiple vehicles and drivers covered under a single policy could make it easier for fraudulent claims to slip through, undetected.
• Potential for disputes: disagreements between the insurer and the company over coverage terms; premium rates; or claims handling could blow up into major issues if the company relied on just one single insurance provider.
• Increased risk of policy cancellation: if the company experiences a high number of claims, or if they fail to meet the insurer's underwriting requirements, they could be left without cover for the entire fleet; which could bring business to a standstill until other arrangements could be made
• Limited cover for non-owned vehicles: policies may not provide full cover for any additional ones that may be leased or rented, during the period of the insurance contract; which can leave the company exposed to risk.
• Extra charges for mid-term adjustments: if the company acquires, or disposes of, any vehicles, you might get charged more than the usual fees for policy changes.
• Limited cover for personal use since the policy would be, essentially, a business one, there may be less (or even no) social, domestic and pleasure usage allowed.

So; whether you want to get a single fleet quotation for your HGVs; or individually; click the link above, to compare quotes now!