If your business relies on a number of vans and a pool of drivers, then it can make sense to get them all covered under one insurance policy. There are two different types of policy to choose from depending on how many vans you have. The size of your business and also the type of work that you do will dictate which the best policy is for you.
If you have any number from two to five vans, then a multi-van policy is most likely to suit you. Not all motor insurance companies will offer fleet insurance for less than 5 vans, but multi-van insurance comes with some disadvantages as well as benefits:
Pros of multi-van insurance
- Having all your vehicles under one policy, even if you only have two to five, is better than each van having a separate policy and potentially all having different start and expiry dates. This will help to keep your administrative burden low.
- Each van can accrue its own ‘No Claims’ discount.
- If you are a small yet growing business you will be able to add vans to the policy as you grow.
- The more vans you have, the greater the insurance premium discount.
Cons of multi-van insurance
- Multi van insurance is often more expensive than large van fleet insurance and the discounts are not as good as for a large number of vehicles under the one, single policy.
- If you are used to spreading the cost of insuring multiple vans throughout the year, suddenly having them all renew together can give you a bit of a financial headache.
If you have more than 5 vans in the business, then a fleet van insurance policy is likely to be your best option, both in terms of convenience and cost.
Pros of fleet van insurance
- The main benefit of a fleet van insurance policy is the attractive quantity discount.
- The ‘No Claims’ discount can be spread throughout the fleet.
- Fleet insurance can be a very flexible option, especially if you add in ‘any driver cover’ to your policy.
- Like multi-van insurance, having all your vehicles under one policy will make your admin much easier, especially if you have a very large fleet.
Cons of fleet van insurance
- If you have young drivers, especially those under 21 or even under 25, then this is likely to make your fleet van insurance premium go up.
- If you have a small fleet of vehicles, the quantity discount is likely to be lower and potentially less attractive.
- Another consideration that will affect the cost is how flexible you need your fleet insurance to be. ‘Any driver insurance’, for instance, is likely to make your premiums higher.
- Watch out for policy exclusions, such as private use of vehicles, as this is sometimes not included on fleet policies.
Here’s a really good guide on fleet insurance that will also give you a few useful pointers on how to keep the cost of insuring your van fleet as low as possible.
Whether you opt for multi-van insurance or fleet van insurance, the right choice really boils down to a couple of things: Who are your drivers and how good are they behind the wheel? What type of vans do you have in your fleet and how well are they maintained?
Young or inexperienced drivers
If you have young, inexperienced van drivers, it makes sense to try and keep these to a lower ratio compared to older and more experienced drivers. Diluting down the perceived risk to the insurer can help to keep policy costs down when it comes to insurance.
It’s not only a driver’s age that will affect the cost of your fleet insurance. Any driver who has a penalty or conviction on his licence is likely to bump up the price too. The same goes for drivers who have been involved in an accident. That said, like young drivers, don’t worry about the odd prang as this is likely to be offset by a larger number of accident free drivers.
If, on the other hand, you have a particularly accident prone individual driving for you, they can hike up the cost across the whole fleet, especially if the fleet is small. If this is the case, your best bet may be to weigh up the benefits of removing said individual from your fleet insurance altogether and giving them their own insurance policy!
Driver history and ability
With the price of insurance being dependent on your drivers’ history and how well they drive, it might be worth using an incentive scheme to reduce your insurance risk and bring down the cost of premiums. Incentivising your drivers with monthly rewards for safe driving could help to lower your insurance bill as well as cutting costly repair bills.
Another way to help keep the costs of insuring your fleet down is the use of technology to monitor driving. Adding a black box to your fleet, especially for vehicles driven by young drivers, can earn you a discount. Many insurance companies will also offer a discount if you agree to install a dashboard camera.
Of course, along with the flexibility and quantity of vehicles comes a higher cost to the business, so it pays to use a comparison website to get the best fleet van insurance deal wherever possible. Comparevaninsurance.com will let you find the most appropriate insurance for your fleet of vans, whatever your particular circumstances.