Kompare

Fleet

Fleet insurance explained

What fleet insurance is, how one policy can cover several vehicles, and the main types of cover it includes, from road risks to liability and goods in transit.

Fleet insurance is a single policy that covers a number of vehicles owned by one company or individual. Instead of insuring each car, van or lorry separately, the fleet is insured together. It covers the risks of running several vehicles, including accidents, theft, damage to vehicles and liability for injury or damage caused by your drivers.

Fleets can be made up of cars, vans, lorries or a mix of vehicle types. Having everything on one policy means one renewal date and one set of paperwork, which many businesses find easier to manage.

What fleet insurance usually covers

Fleet insurance typically includes the following types of cover.

1. Road risks

This covers the fleet vehicles while they are driven on public roads. Depending on the level of cover, it may include accidental damage, theft and fire.

2. Goods in transit

This covers goods carried by your fleet vehicles, for example against accidental damage or theft while in transit. It is usually relevant if your vehicles carry stock or customers' goods.

3. Liability cover

This covers the fleet owner if one of the drivers accidentally injures someone or damages third party property.

4. Personal accident cover

This covers drivers, and in some policies passengers, if they are injured or killed in an accident.

Choosing the right fleet policy

The level and type of cover depend on the policy you choose and what your business needs. Points to think about include how many vehicles you run, what types they are, who will drive them (named drivers or any driver), and what they carry. It is worth comparing what different policies offer, not just the price.

There is no law that says you must buy a fleet policy as such. However, every vehicle used on a public road in the UK must have at least third party motor insurance under the Road Traffic Act 1988. A fleet policy is one way of making sure all your vehicles are covered. If you employ drivers, employers' liability insurance is generally required too; see GOV.UK for details.

At Kompare, you fill in a short form about your vehicles and business, and a specialist FCA-authorised broker from our panel contacts you to talk through fleet quotes. Find out more on our fleet insurance page.