Covid-19 has brought a whole new set of challenges to businesses and the role of insurance is crucial to provide adequate protection of income, jobs and more.
Fleet insurance is no different, with several businesses insuring multiple cars, bikes or vans, and their policies are likely to change in many ways to reflect the different risks and changes to their businesses.
We look at some of the ways that fleet insurance is changing and what you can do to stay on top of the best policies and prices.
Less Mileage
For several businesses, they are going to be doing less mileage than before. When you think of the millions of employees that have been furloughed and are taking breaks from work, this results in millions of less miles consumed. Not to mention the number of company cars that are not being used since staff are working from home.
There are some businesses which have seen a real slowdown and their fleets are not being used as much, such as plumbers, electricians, taxi companies, event and restaurant suppliers, estate agents, sales executives and more.
With less mileage consumed, there is a lower risk of being involved in an accident and this should be reflected by a lower and cheaper policy.
In most cases, fleet policyholders will be contracted to certain insurance agreements, but if their premium is based on mileage or is tracked using telematics, there is a good chance that they can get a discount or save money.
Less Staff
Some businesses will certainly have less staff at the moment, either because they have decreased the size of the business or they have staff that are on furlough.
This means that the average company will probably have less vehicles in their fleet than before.
This change should also be reflected in any costs of insurance policies – since there will be a lot more vehicles either returned or sitting in the garage that are not being used.
More Deliveries – The Growth Areas
Not every business is using less vehicles of course, with delivery businesses seeing particular growth during covid-19.
The number of people preferring to order something to their home, rather than go to the shops, has unsurprisingly skyrocketed.
No doubt many courier companies have had to bulk up their fleets and number of staff, including takeaway deliveries, food deliveries and general parcel couriers.
In this case, business owners should look at gaining further discounts for any additional vehicles that they bring onto their fleets – with the likelihood of getting a saving on every additional car or van that you add to your policy.
You Must Get Quotes
An insurance broker, Get Indemnity, has urged SME to get new quotes for their businesses. Too many companies are continuing to renew policies each year for the sake of convenience, not realising that businesses change rapidly and covid-19 brings new elements to the ball game.
Certainly, reviewing your current insurance premiums can save you money, but also provide adequate cover for the potential uncertainties and activities that may arise during covid-19.
Most brokers will provide quotes free of charge and completing no obligation. It is always useful to have any previous insurance information handy and also the models, makes and vehicle registrations to ensure that you can get a quick and accurate quote.