When it comes to fleet insurance, there are a number of common misconceptions out there. Unfortunately, if you’re not aware of them it could affect your ability to get the best cover from a fleet insurer. Furthermore, some of these widely held beliefs may even be invalidating the policy you currently have in place.
What actually are the most common fleet insurance myths? We take a look at some of the most popular ones and debunk them one after the next below.
Parking your fleet vehicles on the business premises is cheaper
Amongst many business owners and fleet managers, it is a commonly held belief that parking your vehicle only at your business premises is going to be cheaper. Although that is one of the addresses you will be providing when you obtain a quote, it doesn’t necessarily mean you need to always keep your vehicles on site. As long as you or your employees have another safe location where it can be locked and stored when not in use, you can still save money on your next policy.
Statistically speaking, many business’ fleets will be kept on site when not in use. However, for many firms it makes sense that their employees drive these to and from work before and after each shift rather than changing vehicles throughout the day. The main thing to consider is the level of security. If your premises is not any more secure than an employee’s driveway or garage, then it makes little difference where you park it. The only thing to really think about is that any valuable contents are left on site and not kept in the vehicle overnight if it’s parked outside.
Not including certain drivers will give me cheaper fleet cover
Some companies may be tempted to exclude certain drivers from their fleet insurance cover to get a cheaper renewal quote. This should not be done for two main reasons. Firstly, it is breaking the law as uninsured drivers should not be on public roads.
Secondly, by omitting drivers from the policy, you will not be eligible to claim should they be involved in an accident. This defeats the whole purpose of purchasing cover in the first place if you’re unable to claim when you need to.
If you do have any drivers that have been involved in multiple incidents in the past, or have penalty points on their license, there are a few things you should consider. Many businesses have now implemented their own safe driving programmes to train workers on all aspects of road safety. Furthermore, telematics policies are proving popular as you could be saving money on cover if you can demonstrate that your drivers behave responsibly behind the wheel. When hiring, ensure that drivers have a clean license.
Job titles are not important with fleet insurance
When you compare fleet insurance, you may think that job titles are not that important. This is another common misconception. When an insurer is calculating what your premium will be, they will do this by assessing a number of risk factors – this includes your occupation. Therefore, it is important to provide honest and accurate information or your policy could be void for entering false job titles. It shouldn’t come as a surprise that certain job roles carry a higher risk than others. For example, someone working in the security sector will carry more risk than someone working for a sales company.
Driving fewer miles means cheaper fleet insurance
Driving fewer miles can get you cheaper cover but isn’t always necessarily the case. Many people equate lower mileage with a lower premium. However, this is not always true, because in certain instances a driver may end up paying more for driving fewer miles.
Why you might ask? Although not all fleet insurance companies hold this notion, some believe that low mileage may indicate that the driver is not confident enough behind the wheel, therefore meaning that they have a greater chance of being involved in an accident. For this reason, it may be worth considering a ‘pay-as-you-drive’ or low mileage insurance policy if you intend to travel fewer miles than the average driver, this could help you get a better deal.
No matter the case, make sure you are providing honest and accurate information about your annual mileage when you complete a fleet insurance quote. Many motorists that are required to travel for work can easily clock up 20,000+ miles each year. Anyone who is unsure about their annual mileage should check their last MOT or service certificates.
To summarise, these are just four of the most common misconceptions surrounding fleet insurance cover. There are many more out there and a lot of them are similar to standard car cover myths. Remember to always enter accurate information when getting a quote, the last thing you want is a claim to be refused because you falsified your answers.