How does fleet insurance compare to standard car insurance? Does it cost more?

Car insurance policies are generally designed to provide cover for one car. When you take out your car insurance you’re normally buying an annual policy designed to cover a single vehicle.

A fleet insurance policy lets you cover a range of commercial vehicles and cars under one policy. If you run a business with several vehicles - for example, delivery vans or company cars - it can be quicker and cheaper to insure them on one policy rather than taking out separate cover for each vehicle.

Fleet insurance works in a similar way to standard car insurance. The main difference is that you can cover a range of vehicles and a range of drivers on one policy. Fleet cover typically offers the same levels of cover as standard car insurance. These are:

  • Third party only – covers you against damage to another person’s vehicle or property (or injury to a third party) in the event of an accident
  • Third party, fire and theft – as above but also includes cover against damage or injury caused by fire and theft of the vehicle
  • Comprehensive – as above but also includes cover for damage to your own vehicle and injury to yourself in the event of an accident

Most fleet cover lets you choose a level of protection for each vehicle. For example, you may want to cover some of your commercial vehicles on a ‘third party’ basis and others on a ‘comprehensive’ basis.

One major reason why many business owners choose to take out fleet insurance is that it is often cheaper than insuring a number of vehicles separately. As with many products, buying in bulk can result in a discount. So, if you have multiple vehicles to insure then it may be worth considering fleet insurance cover.

As an insurer only has to provide one policy – rather than a number of policies for different vehicles – they will often offer you a lower price for the cover you need. Consequently, fleet insurance is often cheaper than standard car insurance, particularly if you have a number of cars or commercial vehicles that you want to insure.

And, with dozens of providers offering this cover, competition helps to keep the costs down. Shopping around can help you benefit from the peace of mind of great cover at an even more competitive price.