60-second summary
Here’s the lowdown on fleet insurance in under a minute:
Fleet van insurance allows you to insure multiple vehicles – even 500 or more – under one policy.
Typically, you’re covered for carriage of own goods and haulage. You won’t usually be covered for electrical or mechanical failure, loss or damage to uninsured goods or general wear and tear.
You can add optional extras such as breakdown cover, personal accident cover and public liability cover to your business fleet insurance.
Although it’s more expensive than insuring just one van, business fleet insurance may be cheaper than covering multiple vehicles on separate policies.
You may be able to lower the cost of your fleet van cover by paying up front, choosing cheaper vans to insure, picking your drivers carefully, increasing your excess and shopping around.
What is fleet van insurance?
Fleet van insurance is cover for two or more vehicles owned by the same business. You can usually insure different makes and models under a fleet policy. But your insurance provider will need to know the details of each vehicle.
Fleet insurance could be convenient for business owners who prefer one insurance policy with a single renewal date. It also offers a consistent level of cover for multiple vehicles, rather than separate policies for each van.
You can’t currently compare fleet insurance with Compare the Market. But you can compare individual van insurance.
What does fleet insurance cover?
What your fleet van insurance covers will depend on the level you choose, along with any add-ons you buy.
Commercial fleet van insurance will typically provide cover for:
Carriage of own goods – covers drivers who use their van to carry business goods, such as tools.
Haulage (carriage of goods for hire and reward) – protects vans you use to carry someone else’s goods for payment. For example, a courier firm that delivers parcels or a haulage company that transports furniture.
What isn’t covered by fleet van insurance?
Policies vary, but the vans in your fleet typically won’t be covered for:
Electrical or mechanical failure
Theft – if doors were left unlocked, keys were left in the vehicle or items were left on display
Uninsured goods that your drivers are carrying
Damage from general wear and tear.
What’s the difference between commercial van insurance and fleet insurance?
There are few key differences between commercial van insurance and fleet van insurance, the main one being flexibility.
You can easily amend the number of vehicles
Unlike individual van cover, with fleet insurance, you can easily add new or temporary vehicles to your policy. This can be especially handy if you have a large fleet of vans that continually changes.
Just remember to keep your policy up to date with the relevant insured vehicles. If you don’t, you could find you’re not covered when you come to claim.
Flexibility over driver numbers
With fleet van insurance, if you have several employees who are drivers, you can name them individually on the policy or choose the ‘any driver’ option.
Any driver is more flexible, but it’s usually more expensive. Generally speaking, the fewer drivers you have on your policy, the lower your premiums will be.
What types of van can be covered by a fleet insurance policy?
As well as your standard small, medium and large vans, you’ll normally be able to include the following in your fleet business insurance:
Box/Luton vans
Light vans
Vans with cabs (single or double).
And you’re not just limited to vans with fleet motor insurance. You’ll usually be able to cover other vehicle types on your company fleet insurance policy too. They’ll just need to be registered under the same company name.
This could include motorbikes, minibuses, HGVs and tractors. This can vary between providers, so do check. Some company fleet insurance policies may exclude tractors and specialist vehicles such as dumper trucks.
How many vans can be included in a fleet?
Most insurance providers will have a minimum and maximum limit for the number of vans that can make up a fleet. But some will insure 500 vehicles or more on a single policy.
If your business only has a very small fleet, you can get mini fleet van insurance for up to 15 vehicles.
The definition of ‘fleet’ varies between providers. So, it’s always best to compare van cover to see which type of policy is best for your business.
What levels of cover can I get with fleet van insurance?
There are three tiers of cover offered by fleet van insurance policies. These are:
Third-party – this is the legal minimum and covers you for the cost of damage done to another person, their vehicle or property. It won’t cover the cost of damage to your own vans. Not all fleet insurance providers offer this level of cover.
Third-party, fire and theft – this includes everything covered by third-party insurance. It also covers you if your vans are stolen, damaged or destroyed by fire.
Comprehensive – this is the highest level of cover. It includes all of the above, plus cover for damage to your own vans and drivers.
What additional cover might I need with fleet insurance?
There are many optional extras you can add to your fleet insurance, though some may already be included in some comprehensive policies.
Common add-ons can include:
Breakdown cover – the more vans you have, the more likely you’ll need this extra cover.
Courtesy van cover – courtesy van cover gets you back on the road with replacement vans while yours are being fixed.
Personal accident cover – if one of your drivers is seriously injured or killed in a road accident, this can provide compensation.
European cover – if your fleet is driving internationally, you’ll need extra cover.
Public liability insurance – though it’s not a legal requirement, some clients will insist you have this. It can cover legal fees, or compensation claims for injuries to members of the public or property damage because of your work.
Do I need employers' liability insurance with my fleet van cover?
As a business owner, you’re also legally required to have employers’ liability insurance even if you only have one member of staff. It covers compensation claims if employees suffer an illness or injury while working for you.
How much does fleet insurance cost?
How much your fleet van insurance costs will depend on multiple factors, including:
The size of the fleet – some fleets can include hundreds of vans. The more vans you’re insuring, the more it’s going to cost. However, it should still be cheaper than individual van insurance.
The types of van – the more valuable the van, the more expensive it’ll be to cover. The power, safety and security of the vans will also affect the premiums. Specialist van conversions, such as vans with racking or tail-lifts, can also be very expensive to insure and repair or replace.
The type of cover – the more comprehensive your fleet van insurance, the more it’s likely to cost.
The drivers – with a larger fleet of vans, you’ll need more drivers. Depending on their levels of experience and driving history, this could affect the cost of your cover.
Your claims history – if, as a business, you’ve made any claims in the past, your insurance provider will view you as a higher risk. This means you’ll likely be charged more for cover in the future.
How to get cheaper fleet van insurance quotes
If you’re looking for a cheaper fleet insurance policy, here are some tips for keeping your premiums in check:
Consider the make and model of your vans – as with any van insurance policy, it could be wise to choose vehicles that are cheaper to insure. Consider value, engine size and security features.
Set a higher voluntary excess – if you’re willing to pay more upfront towards any claims, it could make your fleet insurance premiums cheaper. Just make sure you can afford to pay the excess if you need to.
Improve your vans’ security – for example, installing immobilisers and providing secure parking with CCTV could lower the risk of your vans being damaged or stolen.
Choose good drivers – if the drivers on your fleet insurance policy have claims histories or previous convictions, you could end up paying more to insure them.
Keep your vans serviced and well-maintained – regular maintenance of your fleet can make a huge difference, as the vehicles will be less likely to break down.
Pay up front – this might not be possible if you’re insuring a huge fleet, but paying annually rather than monthly could be cheaper in the long run.
Consider a telematics policy – black box insurance involves installing devices in your vans to monitor your drivers’ safety. If they drive well, you could get cheaper insurance. Likewise, bad driving could bump up your premiums. The data generated can also be used to dispute accident claims or cash for crash, for example.
FAQs
Can I get a no claims discount with fleet insurance?
It’s unlikely you’ll get a no claims discount with fleet insurance. Instead, insurance providers will consider the total number of claims across the entire fleet when calculating your renewal premium.
If you only have a very small fleet and your drivers are eligible for no claims discounts, you may find it cheaper to take out individual policies.
Is there an age restriction for drivers on fleet insurance?
It depends on the policy, so always check to be certain. But fleet insurance providers may charge higher premiums or excesses for drivers under the age of 25. There may also be restrictions on the types of vehicle they can operate.
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With more than eight years’ experience in writing and sub-editing content, Karen started her career in fashion before making the move to insurance. She now specialises in producing clear, engaging content that helps people make better financial decisions.
Karen’s areas of expertise include insurance products, such as car insurance, travel insurance and life insurance, as well as utilities such as energy comparison.
Stephen Maunder is an experienced personal finance editor, having spent more than a decade working for consumer print and online titles. He won several industry awards for his personal finance features at Which?, before becoming Deputy Editor at Compare the Market.
Amy helps make sure you get the best value when choosing insurance. Thanks to more than four years’ experience at Compare the Market, she understands what people look for, working closely with insurance providers to offer you deals and services that are fair, easy to understand and right for your needs.
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