Fleet Insurance

Why is Fleet Insurance Required?

Mandatory Insurance Cover

Businesses, self employed sole traders and public sector organisations that run vehicle fleets must have vehicle insurance if their motor vehicles are driven in a public place.

Driving a commercial vehicle without insurance against a third party risk is an offence.

Motor insurance policies protect society by providing financial compensation for injuries caused to people or their property by the insured vehicle.

Protection For Society

Fleet insurance provides protection for your business, your vehicle and other motorists against liability and the consequences of financial loss in the event of any accident.

Without a legal minimum of Insurance cover, the victims of Road Traffic Collisions (RTCs) which can cause death or injury, or damage to property or to goods in the course of business could be left uncompensated for their loss.

Sharing Of Risk

Insurance policies for fleets of cars, vans, hgvs, coaches and mixed fleets and are a contract which gives you/or your business the financial protection against valid losses. The insurer pools insurance risks so the burden of risk is shared.

Because of the wide variety of types, sizes and uses of commercial vans in many medium sized and large companies fleet insurance is a package designed to ensure risks are covered adequately with the minimum of administration time and bureaucracy.

Penalties for uninsured driving

If company employees find themselves and their vehicles uninsured then they will be committing a serious offence with penalties including maximum fines of up to £5,000, fixed penalty systems such as penalty points and fines, the seizure and in appropriate cases destruction of vehicles. The Road Safety Act 2006 makes provision for harsher sentences for those who kill or are involved in accidents while driving uninsured.