Whether you have one or manage a growing team of vehicles, one question always comes up: should you insure vehicles individually, or would a Fleet insurance policy make more sense? The right choice can save money, reduce admin headaches, and make your business far easier to manage, but ultimately, it depends on your circumstances.
This article will break down the differences to help you make an informed decision.
What’s the difference?
Individual vehicle insurance
- Each vehicle has its own policy, premium, and renewal date.
- Works well if you only operate one or two vehicles or if they’re used for different purposes.
- Policies can be tailored to the specific driver or use of the vehicle.
Fleet insurance
- Covers multiple vehicles under a single policy - anything from two cars to hundreds of vans, lorries, or mixed-use vehicles.
- One renewal date and one premium to manage.
- Flexibility to add or remove vehicles and drivers as your business changes.
- Blanket cover and simplicity of documentation with single certificates, with all vehicles managed on the Motor Insurance Database.
When does individual vehicle cover make sense?
- Small operations: If you’re an owner-driver or only have one or two vehicles, insuring individually may be cheaper.
- Different usage: If vehicles are used for completely different purposes (for example, one for personal use and one for business only), separate policies might suit.
- Young or high-risk drivers: If only one driver is considered high-risk, you may want to keep their policy separate so it doesn’t affect your whole Fleet premium.
When is Fleet insurance the better option?
- Three or more vehicles: Once you operate multiple vehicles, Fleet insurance often becomes more cost-effective.
- Growing business: If you plan to add more vehicles soon, a Fleet policy gives you flexibility.
- Simpler admin: One policy means fewer renewal dates, less paperwork, and easier management.
- Any-driver options: Many Fleet policies allow any driver (over a certain age) to use any vehicle, reducing scheduling issues.
Cost isn’t the only factor
While price matters, consider efficiency, flexibility, and risk management too. Fleet insurance can help standardise cover, making it less likely that a vehicle will accidentally go uninsured because someone missed a renewal date. On the other hand, individual policies give you more granular control if vehicles have very different risk profiles.
How to decide
- Review your current vehicle count and growth plans.
- Assess driver profiles and risk levels.
- Compare combined costs of individual policies vs. a Fleet policy.
- Work with a specialist broker to explore tailored options, as we are able to negotiate more competitive premiums on your behalf.
We’re here to help
Whether you’re an SME with a few vans or a large company managing a mixed fleet, our specialist Motor Fleet team can help you find the right cover at the right price. Get in touch today to discuss tailored Fleet or vehicle insurance options for your business.