It’s not unusual to encounter fleet managers who are fairly uninspired by the idea of adopting a different approach to motor fleet insurance.
They’re usually busy individuals and their focus is often simply on the cost or premium associated with a given policy or policies. When asked about the nature of fleet insurance, one sometimes hears expressions to the effect of:
- “..better the devil you know” or
- “..they’re all much of a muchness”.
Let’s examine why such perceptions are typically inaccurate and why it IS important to periodically sit back and think about the nature of your motor fleet insurance business.
The prices don’t vary much
In fact, they do and sometimes by very substantial amounts.
There isn’t any way of proving this for a given fleet other than to suggest you contact an experienced provider of motor fleet insurance policies for a full discussion and explanation of how prices might differ.
The cover doesn’t vary much
This is really a variation of the first point and it’s typically equally mistaken.
Just by way of a snapshot, here are just a few areas where cover might vary between policies:
- all qualified drivers or exclusions by minimum ages;
- unlimited annual miles or capped totals;
- drivers with motoring convictions accepted or excluded (or accepted with heavy additional premium implications);
- replacement vehicles included or not;
- windscreen cover included or not;
- special (perhaps prohibitive for some fleet managers) requirements relating to overnight garaging;
- mixed fleets support or otherwise (e.g. cars and vans/trucks); etc.
Of course, one can’t really say much about the premium in a quotation unless it’s clear what it’s covering and what it’s not. So, the above cover components and others like them really should be taken into account.
Needless to say, it’s also very important to be sure about what’s included or excluded before you need to start discovering it for real in the event of a claim!
Nobody can understand the detail and jargon – so reviewing it is pointless
There is, in fairness, a kernel of truth here.
Although the insurance industry, including that covering motor fleet insurance, has made huge strides in simplifying its language over recent years, getting to the bottom of a policy can sometimes be a challenge. That’s exactly what’s required though before you can interpret the premium in terms of value for money or have a warm feeling that your interests are protected.
However, there are specialist providers out there who can do so because it’s their job to. It might make sense to use them rather than to assume that it’s all too complicated.
If you have a policy you’re happy with then that’s all that counts
This has some appeal but history suggests it’s not the best approach to ensuring that you’re fleet is getting a suitable managed-risk solution for insurance. It really is important to be clear you understand your policy.
The UK’s insurance market is almost universally accepted to be one of if not THE most dynamic marketplace in the world. New products are constantly being developed and brought to market and they might yield improved cover.
The effort involved in verifying that you understand what your policy covers and almost more importantly, what it doesn’t, is usually modest for the fleet manager concerned providing they have experienced help. It might be worth trying it to see!