If you have now decided that fleet insurance is the bet option for you and your business, then the next step is to obtain some quotes. To help you make an informed decision on which fleet insurance policy will be best for your business, you will find a breakdown of the different levels of cover available below.
Fleet insurance, like regular car insurance, is available in three main levels of cover; Comprehensive, Third Party, Fire and Theft (TPFT) and Third Party Only (TPO). The policies differ in terms of the amount of cover they provide, and as a result the cost of these policies differ.
Comprehensive cover is the highest level of cover available and is therefore normally the most expensive. It covers your fleet for accident repair to their vehicle, or the third party vehicle, regardless of where the liability lies. It also covers your vehicles against fire and theft. The main attraction to this level of insurance is that in the event of a collision, your company vehicle will be repaired free of charge, meaning that you will not have to pay any large lump sum bills in order to get your vehicle back on the road. A courtesy vehicle is often available to replace the one currently damaged meaning that you will not lose any working hours.
The disadvantage to Comprehensive insurance is that it is the most expensive and as a result some companies feel that they are unable to afford it. Therefore, a popular choice is TPFT as it provides a decent level of cover for a smaller price. TPFT does not pay for repairs to your company vehicle in the event of an accident where your driver was at fault, however it pays for the third party vehicle to be repaired and the driver compensated where necessary. This also protects your vehicles against theft or fire damage which are two very real dangers for fleet owners.
If you are looking for cheap fleet insurance, then opting for TPO cover will be best for you. This is because it has the lowest level of protection, only covering the third party in an accident that is the fault of your driver, and as a result carries the cheapest premium. This is good for companies who operate vehicles which have a low monetary value e.g. old vans or cars which if damaged could be cheaply repaired or replaced.
Hopefully you will now have a better understanding of the different types of fleet insurance and be able to make a decision which one you feel is best for your business. It is however always a good idea to speak to a professional as lots of companies offer extra features with their fleet insurance policies and so it is good to find out what these are before making your final decision. We recommend that you begin by giving Falcon Insurance a call on 0800 221 8267; their team of experts have the skills, knowledge and experience necessary to recommend the best package for your business.