In brief
Fleet insurance covers all of a company’s vehicles under one policy instead of insuring each vehicle separately. The premium is mainly based on the claims history of the fleet as a whole.
How does it differ from individual policies?
Instead of classifying each vehicle by its no-claims class, the claims history of the entire fleet is assessed. Vehicles can be added and removed without taking out a new policy, and administration is reduced to one contract and one bill.
The fleet size at which insurers offer such policies differs by provider.
A fleet policy or individual policies?
The difference is what the premium is based on.
| Feature | Fleet policy | Individual policies |
|---|---|---|
| Premium calculation | Claims history of the entire fleet | No-claims class for each vehicle |
| New vehicle | Notification is sufficient | New policy required |
| Administration | One policy, one bill | Separate for each vehicle |
| Effect of a claim | Spread across the fleet | Affects the vehicle's classification |
| Scope for control | Deductibles and claim prevention | Vehicle selection and classification |
How is the premium calculated?
The key measure is the claims ratio: claims costs relative to premiums paid over an observation period. If it remains above the insurer's assumptions, the premium rises or the policy is canceled. Deductibles, reducing minor claims, and reducing claim frequency can all help control this ratio.
What matters in negotiations and day-to-day operation?
Your own data. A fleet manager who can show how claim frequency and costs have developed and what measures were taken negotiates from a different position than one who only knows the insurer's figures.
Accurate reporting is essential in day-to-day operation: unreported damage does not disappear. It comes to light later at lease return or sale, but then without insurance cover.
Further reading
Fleet Management Without Excel Spreadsheets
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