Fleet insurance

What it means

Fleet insurance is a single policy covering several vehicles of one company. Instead of a separate policy for each car, all vehicles, whether cars, vans or trucks, are insured under one contract, usually for compulsory motor liability and often also comprehensive cover.

Insurers usually offer fleet cover from a certain number of vehicles. The price depends not only on the individual vehicles but on the claims history of the whole fleet over recent years. A good record lowers the premium for every vehicle; a poor one raises it.

The advantages are one contract, one renewal date and easier addition and removal of vehicles during the year. The company has an overview of insurance costs for the whole fleet and can negotiate better terms than with individual policies.

How it works in practice

When choosing cover we work with an insurance broker who compares offers from several insurers. We look mainly at the excess, cover for drivers under 25, assistance services, a replacement vehicle and whether cover applies while carrying goods.

The premium is tax-deductible, and when paid annually we spread it over the period it covers. For cars on an operating lease we check whether insurance is already included in the rent, so that the company does not pay twice.

A fleet’s claims record can be influenced. We recommend clear rules for drivers, regular safe-driving training and reporting even minor damage. Quick and complete claims handling shortens the time a vehicle is off the road.

What to watch out for

The bonus-malus system works differently for fleets than for individual cars. When a company moves from individual policies to fleet cover or back, it should check how historical discounts carry over so they are not lost.

An employee who damages a company car is liable to the employer under the Labour Code. Comprehensive cover pays for the damage to the car, but the excess and the higher premium stay with the company, so rules on drivers’ share of the excess should be agreed in advance.