Commercial fleet insurance is one of those services that is essential, especially for larger companies or businesses, but can be rather confusing. For those who have not previously purchased commercial fleet insurance, it is imperative that full research is done into the various packages and options available before the sale is complete.
A large proportion of companies within the commercial insurance sector offer commercial fleet insurance. Whilst this does give wide scope for shopping around, it does mean that the amount of information available can prove daunting. Whilst some people choose to forge on ahead and buy their insurance without any help, others choose to use insurance brokers to help them choose the best deal for their money.
An insurance broker by definition is an agent who will obtain insurance contracts from companies on their customers' behalf. Since 14 January 2005, the Financial Services Authority (FSA) has regulated the sale of General Insurance.
In the case of commercial fleet insurance, an insurance broker will be able to translate all the legal and binding jargon into a language that can be understood by the consumer. They will also aim to ensure that the best prices and packages are found and offered to the buyer. As different companies offer various policies with diverse minimum/maximum requirements, this will also need to be taken into account. Some companies, for example, consider 5 vehicles to be the minimum for a policy for commercial fleet insurance, whereas others regard 12 as the minimum amount.
Some other points that will need to be kept in mind when considering which commercial fleet insurance policy to take out are:
1. The age of the drivers in question; some companies do not cover for those under a certain age due to increased risk.
2. The previous insurance history of the drivers in question; have they had accidents or convictions that will need to be declared?
3. The level of cover needed; there are three levels offered - Third Party Only, Comprehensive and Third Party, Fire and Theft. Whichever option you choose, you will need to ensure you are covered for all possible risks that the vehicles may encounter.
In some cases, where younger drivers or those with poor history are involved, it may be less costly to insurance the vehicles separately, as one person's driving could cause a reduction when No Claims benefits are taken into account. However, for those with experienced drivers that may pose less of a risk, commercial fleet insurance usually works out as the cheaper option.
Another aspect that either an insurance broker or an individual searching for cover will have to bear in mind is whether they are looking for a new policy or to renew for another period of cover. Those who have existing commercial fleet insurance with a company may find they get a discount for staying with the company (although this is not always the case). This is aided if they have a No Claims bonus (where they have not claimed on the policy in the past year).
Overall, using an insurance broker to help you find the best cover available within your budget does tend to be the best option, as you can ensure that you are getting the best value for money cover with a policy that is tailored to your needs.
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