Commercial Motor and Fleet Insurance

Business looking for insurance often don’t understand whether they should been engaging with a broker for Commercial Motor Insurance or Motor Fleet Insurance.

In short, the difference is one of size. Commercial Motor Insurance is typically for fleets of less than 15 vehicles, while Motor Fleet Insurance is designed for large fleets of more than 15 vehicles, and those that include large trucks, vans and the like. The names of these types of insurance might vary slightly from one insurer to the next, but there is always a difference in what is offered to those insuring a fleet of less than 15, and those insuring larger fleets.

Commercial Motor Insurance

For organisations with smaller fleets, of less than 15 vehicles, a business fleet insurance policy won’t look all that much different to a private car policy. These will generally work on best practice standard policies, with organisations purchasing standard policies that can cover anything from minimal legal cover through to comprehensive packages.

Motor Fleet Insurance

For larger or more complex corporate fleet insurance policies, Corporate Fleet Insurance can have a greater level of customisation written into the policy, in order to better address the specific needs of each customer organisation. However, coverage through these policies can also be limited to legal minimums through to completely comprehensive, though policies will generally have written into them:

• New vehicle replacement after total loss within a period of time after the original registration.
• Cover against theft, loss, or damage caused by an insured event.
• Costs of towing and storing a vehicle
• Hire vehicle in the event of theft.

Additionally, many insurers look for ways to offer product and service differentiation to their Motor Fleet Insurance policies, with everything from 24/7 claims, to expert risk assessors and assistance with annual vehicle declarations.

Because of the complexity of Motor Fleet Insurance, it is generally a good idea for businesses to engage with a broker for their corporate fleet insurance. For further information contact Oracle Insurance.