3 popular reasons why businesses switch to a fleet insurance policy

By Callum Watkins, Marketing Executive at 1st Choice Insurance

There is no doubt, professions that require commercial vehicles are on the rise. It has become lucrative business. According to the SMMT, 1.8 million sole traders depend on their vans to make their livelihood. This increase in commercial vehicle use in the UK has led to more businesses taking advantage of the benefits fleet insurance can offer.

So, why has fleet insurance become more popular? After all, it is often thought that fleet insurance policies tend to increase insurance premiums for businesses. However, the recent surge of fleet policies suggests that the benefits they offer to businesses far outweigh the desire to simply save money. As fleet insurance experts, we wanted to outline why we see more businesses considering fleet insurance, explaining the 3 main reasons why you should also consider fleet insurance today.

Fleet insurance offers greater flexibility

This is possibly the main reason businesses consider taking out a fleet insurance policy. Fleet cover gives you the opportunity to add any driver restrictions. This allows businesses to take on new staff, temporary staff, or cover unexpected shifts without being held back by the terms of their policy. This minimises the impact of staffing issues on businesses operations. Fleet insurance also allows you to easily add new vehicles or drivers to the same policy, and it is easier to add additional layers of cover such as goods in transit, without needing a new standalone policy.

Fleet insurance is easier to manage

In a nutshell, policies mean paperwork. When you are running a commercial fleet, maybe a delivery business, having 30 vehicles with 30 different policies and 30 different sets of paperwork can cause an administrative nightmare. It takes time, and in a small to medium-sized business, time is money. Besides the paperwork, who do you call when you need to make a claim? With one, manageable fleet policy, you deal with one supplier – saving you time, hassle, and therefore money.

Fleet insurance offers cost savings

A common misconception of fleet insurance is that it is expensive. Whilst this can be true, but that is often down to any driver restriction – which you can choose not to have. By insuring multiple vehicles together, it often allows the broker to pass on a ‘bulk’ discount. Another thing to consider is becoming fleet rated. Once you have a year of claim free insurance history, you become fleet rated. This means you can expect to be rewarded with lower premiums each year. Over time, these costs savings will easily outweigh the initial increases that may occur in your first year.

Should you make the switch?

I hope we have made the benefits of taking out a fleet insurance policy clear. In short, any business who operate more than 3 vehicles for commercial use can benefit from flexibility, simplicity and reduced premiums year on year. We always recommend using an experienced insurance broker who understands the market. Above all, ensure you read the terms of your policy, so you pay for the cover you really need, and nothing else. If you need more advice, please feel free to get in contact with us at 1st Choice Insurance.

For more information: www.1stchoiceinsurance.co.uk/motor-insurance/fleet-insurance/

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