Fleet Insurance Frequently Asked Questions

• Why do I need fleet insurance?

  To ensure that your fleet is quickly back in action after accidents, breakdowns and thefts, and that total loss is also covered if necessary, efficient fleet insurance is essential. Whether partial or fully comprehensive, with or without protection cover – we will help you find the right insurance solution for you with low premiums and top benefits. Fleet managers and companies benefit from tailor-made rates and can significantly reduce their administrative workload with just one framework contract. In any case, the following applies: Your fleet must at least be covered by liability insurance. There are also other insurances to ensure that your fleet is quickly back on the road after accidents, thefts or breakdowns and that you are promptly reimbursed for any damage incurred.

• What are the benefits of fleet insurance?

  One of the most important benefits of fleet insurance is the low cost, as just one master policy covers the entire fleet. Instead of insuring each vehicle individually and having to keep track of a whole series of contracts with different conditions, only one policy is needed and both the effort and the costs are significantly reduced. The average no-claims class for the entire fleet also results in additional price advantages, making the combination of different vehicle types more attractive.

• What are the disadvantages of fleet insurance?

  At Holman, we are committed to fairness and transparency. That’s why we don’t keep you in the dark about what some consider to be the disadvantages of fleet insurance, although it’s important to qualify right away that there is no ONE fleet insurance policy. All insurers handle the following points differently.

  • It is easier to insure one vehicle than an entire fleet. In order to assess fleet usage or risk, usage must be well documented. If the analysis is positive, the insurance premium may be reduced. Typical questions are:
    • How many and what kind of accidents does your fleet have per year?
    • Are your drivers trained or experienced?
    • How and where are the vehicles used?
    • Is your fleet digitized, meaning does it work with telemetry data such as driving behavior, speed, braking behavior?
• What does fleet insurance consist of?

  Fleet insurance is bundled individual insurance policies. The basis is compulsory insurance (motor vehicle liability). In addition, you can choose partial or comprehensive insurance. With modules tailored to your needs, you can expand the insurance coverage individually.

• What are the most important features of fleet insurance?

  The focus of fleet insurance is on comprehensive protection with minimal administrative effort. Instead of insuring each vehicle individually, the entire fleet is covered by just one master agreement. The basis for this is the statutory liability insurance, which covers damage caused by drivers or vehicles of the company to other vehicles or persons. In addition, there is the option of taking out commercial partial or fully comprehensive insurance for the entire fleet, so that damage to the company’s own vehicles is also covered.

• Which rate makes sense for my fleet?

  There are also different rates for fleets. For most insurers, the tariff that makes sense for your fleet depends on the number of vehicles in your fleet. For example, there are tariffs for small fleets, mini fleets and large fleets. Typically, a small fleet consists of 5 to 20 vehicles. A mini fleet consists of 3 to 4 vehicles, and a large fleet usually starts at 20 vehicles. Furthermore, the rate depends on the type of “pulling vehicles”. Pulling vehicles include all commercially used cars or trucks that are not rented out, as well as forklifts and other work machines that require insurance. Thus, fleet insurance cannot be purchased for trailers alone; there must always be “towing” trucks, cars or other commercial vehicles. Fleet tariffs basically correspond to conventional car insurance in terms of benefits: insurers offer fast and unbureaucratic assistance in the event of a claim, which includes, for example, arranging towing or recovery services, vehicle return transports, workshops with holiday service and replacement drivers. Some insurers also offer convenient invoice management, where documents and invoices are clearly prepared and sent to the policyholder at contractually agreed upon times.

• What insurance models are available?

  Depending on the provider, different policies with different coverage types are offered, available for a specified number of vehicles. The minimum insurance coverage is the legally required motor vehicle liability insurance. Partial and fully comprehensive insurance for the entire fleet is offered as an option. In addition, many insurers offer additional modules that can be used to further customize insurance coverage according to individual requirements. One example is passenger accident insurance, which also protects drivers.

• Which vehicle models are covered by motor fleet insurance?

  Fleet insurance is applicable for commercially used vehicles. This includes the following vehicle models:

  • Passenger car
  • Truck
  • Delivery vans
  • Tractors
  • Motorcycles
  • Trailers
  • Special vehicles (e.g. forklifts)

  Decisive for the fleet size and the associated contract are the towing vehicles.

• What are the advantages of fleet insurance over individual insurance?

  Compared to individually insuring the vehicles in a fleet, what stands out above all is the reduced bureaucratic effort. Only one contract is required instead of many contracts, which may come from several insurers and have different conditions. In addition, fleet insurance for companies is also significantly cheaper and, as a result of the average calculated no-claims class, individual accidents are not as significant.

• In which cases can the conclusion of a fleet insurance policy be problematic?

  When taking out fleet insurance, the size of the fleet and the company’s industry are relevant. The risk of a claim is measured on the basis of this. For example, it is much easier to insure the company cars of a large law firm or a medium-sized craft business than those of a cab company. Especially when, as in the example given here, the company’s main business is on the road. The example of car sharing is particularly extreme because the drivers are not trained and usually do not know the models they drive. In short, the risks turn out to be much higher, which is why separate inquiries have to be made with motor insurers and, if necessary, individual conditions negotiated. Other examples where this may be the case:

  • Delivery services
  • Bus companies
  • Car rental companies
  • Parcel and courier services
  • Car sharing companies
• What costs can be expected for fleet insurance?

  This question cannot be answered in a blanket manner, as the insurance premium is calculated individually for each fleet. However, there are certain factors that have a major impact on the amount of the premium. These include:

  • Type of vehicles to be insured
  • Size of the vehicle fleet
  • Previous claims history of the vehicles
  • Scope of insurance (e.g., liability or comprehensive)
  • Amount of deductible
  • Type of business activity
• What is meant by the unit pricing model for large fleets?

  For particularly large fleets, insurance companies often switch to using the unit price model instead of the no-claims class and thus no-claims discounts. The vehicles are then divided into uniform groups, whereby, for example, vehicle type or engine performance play a role. A unit price is then set as the premium for each of these vehicles, based on the respective claims history. In contrast to the no-claims class, therefore, an individual amount is not calculated for each individual vehicle, but only the unit price valid for the respective group.