Vehicle insurance is the cause of many nightmares for fleet managers and private owners alike. It always feels like a waste of money (even though it’s not) and understanding the fine print is close to impossible. But there are ways around this.
Vehicle insurance feels like a grudge purchase, but it’s an absolute necessity, especially on fleet vehicles. Thankfully there’s a host of information to be found online and you can even check which insurance companies receive the most compliments or complaints through sites like Hello Peter and their social media profiles. But how do you know exactly which policy best suits your needs? The best advice is to write down the key points you consider most important and ask your insurance company directly.
When considering fleet insurance, here are five questions to ask before deciding on vehicle insurance:
-
Who is covered by the policy?
Make sure your policy is fleet-specific and will cover any drivers employed by the company. Ask what the restrictions or exceptions would be so that you’re fully aware of people who might not be covered.
-
Which parts are covered and does the policy cover manufacturer approved parts?
Some insurance policies are limited in the type of car parts that are covered. Some will only cover original, manufacturer approved parts, whilst others cover approved parts as well. Depending on the purpose of your fleet, certain parts will need to be replaced more often than others. Deciding to exclude windscreen and glass cover may result in a sizable discount in premium
-
What will the excess be?
Remember that your excess will almost never be the same amount. Excess is determined by the total damage cost, the type of policy you have, and even the type of policies (if any) held by other parties in the accident. Find out exactly how your excess will be determined in each scenario and what the likely costs will be.
-
Are extra services provided?
Being covered for towing assistance might be very important to some companies and not to others. It all depends on what your fleet is used for. If towing is a necessity for you, make sure you have a comprehensive towing benefit included. Find out if there are any exclusions (area, types of vehicles etc). If towing is not something you require, make sure you’re not paying for it.
-
What’s in the fine print?
Yes, just ask! Ask them whether there’s anything notable in the fine print that would have an impact on the scenarios you’ve described. You can even take the time to go through all the fine print with them and have it explained.
Deciding on the right vehicle insurance is important as it could have a significant impact on your overall fleet budget. Take the time to go through all the details and ask as many questions as you can – you don’t want to end up with insurance that doesn’t cover your most critical needs. Insurance shopping might be a pain, but it’s crucial to your business, so take the time to look at all the detail in order to make the best choice.
