Top 7 Benefits of Motor Fleet Insurance

May 18, 2023

Have you ever played a game of Jenga? You carefully stack wooden blocks on top of each other, trying to maintain the balance and stability of the tower. But even a single wrong move can bring the whole tower down.

Well, managing multiple insurance policies for a fleet of vehicles can feel like playing an oversized game of Jenga. Having to manage the coverages, payments, and renewals for each policy can be a rather daunting task. And forgetting one premium payment or missing a renewal date can cost you big.

But what if there is a way to make this easier? That's where motor fleet insurance comes to help you out! It covers all your vehicles under a single policy, allowing you to save time, money, and stress.

Let’s understand more about the benefits of Motor Fleet Insurance in the article below.

First, What is Motor Fleet Insurance?

Motor Fleet Insurance is a comprehensive insurance policy that provides coverage for a group of 3 or more vehicles under a single policy. This type of policy caters to the needs of individuals or companies that own more than 3 vehicles and want to insure them all together.

● For businesses, Motor Fleet Insurance provides a solution for insuring multiple vehicles used by their employees. Covering all vehicles under a single policy simplifies insurance management and streamlines the involved nitty-gritties.
● And for individuals who own more than three vehicles, it can provide the convenience of managing all vehicles under one policy, instead of keeping track of multiple insurance policies.

Benefits of Motor Fleet Insurance

Listed below are some of the reasons why you should buy Motor Fleet Insurance for your vehicle -

1️⃣A Single Policy Covers All Vehicles
Motor fleet insurance provides coverage for multiple vehicles under a single policy. This is a big advantage for businesses or individuals who own multiple vehicles as it eliminates the need to manage multiple insurance policies. This saves you time, effort, and money by ensuring that -

➔ You only need to make one payment for all policies,
➔ You only deal with one insurer, and
➔ You only have to keep track of one insurance policy.

For example,

Harsha and Hari each own a small business with a fleet of 10 vehicles.

● Hari has individual insurance policies for each vehicle. Every time a new vehicle is added to the fleet, he purchases a new insurance policy. He spends a lot of time managing each insurance policy and often forgets to renew them on time. This leads to penalties and higher premiums. .

● Harsha has motor fleet insurance. It covers all of his vehicles under a single policy, which eases policy management. He no longer worries about purchasing new insurance policies every time he adds a new vehicle to his fleet. He also has a single point of contact for all their insurance needs, which makes it easier to manage the policy and handle any claims that arise.

2️⃣Vehicles Can Be Insured As Groups/Lump Sum
One of the best things about motor fleet insurance is that you can customise it to suit your needs. You can choose to insure your vehicles as a group or as a lump sum. You can create different groups according to the type of vehicles, usage, etc.

For instance,
➔ You could create a group for all the trucks, another for the cars, and a third for the delivery vans.
➔ If not, you can insure all your vehicles under a single lump sum. This is useful if you have a fleet of vehicles that are all used for the same purpose, such as a taxi or delivery service.

3️⃣The Policy is Customizable
One of the biggest advantages of motor fleet insurance is that it is highly customizable. You can choose the level of coverage you want for your vehicles, the premium deadlines, expiration dates, renewals, etc. This means that you can choose the policy to meet your specific needs and avoid handling different insurance policies.

4️⃣Company-Owned Vehicles Can Be Insured
If you own a company and have multiple vehicles registered under your company's name, you can insure them all under a single motor fleet insurance policy. The policy covers all types of vehicles, whether they are used for commercial or private purposes.

5️⃣Discounts on Premiums Payable
One of the benefits of choosing Motor Fleet Insurance is that you may be eligible for discounts on the premiums. These discounts can vary depending on the insurer, the number of vehicles insured, etc.

6️⃣Better Rates and Terms
In addition to discounts on premiums, choosing Motor Fleet Insurance can also get you better rates and terms on the policy, depending on the size of your fleet. This means that you might be eligible to get a lower premium or higher coverage for your entire fleet than on a single vehicle. You can thus enjoy significant cost savings and/or better coverage.

7️⃣Comprehensive + Third-Party Combo
Motor fleet insurance allows you to have a combination of both third-party-only policies as well as comprehensive policies. This means that you can customise your policy based on the specific needs of each vehicle in your fleet.

For example,

Arsh is the owner of a small car rental business. He owns a few vehicles that are old and are used very less. He recently purchased a few brand-new vehicles. Arsh decides to opt for a combination of third-party and comprehensive cover for his vehicles.

He contacts his insurance provider and chooses to buy a motor fleet insurance policy that covers all his vehicles. He decides to take comprehensive cover for the new vehicles and third-party cover for the old ones.

To conclude,
Motor fleet insurance offers a range of benefits for both individuals and businesses that own 3 or more vehicles. With a single policy covering all your vehicles, you can ease the process of managing your vehicles’ insurance policies, and save time and effort in keeping track of multiple policies.