How usage-based insurance works, how the cost is calculated and how to get a quote for Fleet insurance from Zego.
In recent months, due to the ongoing situation regarding COVID-19, many fleets have seen a decline in how much time their vehicles are spending out on the road. As a result, the popularity of usage-based insurance solutions has risen, as some fleet owners feel that they have been overpaying for the cover they have received in this time.
Zego’s Fleet insurance customers saw their monthly insurance cost reduced by an average of 64% when their fleet operations were cut back due to the lockdown restrictions, so it's no surprise the popularity of usage-based cover is on the rise. In this post, we’ll look into how usage-based Fleet insurance works, how it differs from a traditional Fleet insurance policy and how you can get started with your quote.
How does traditional Fleet insurance work?
When you purchase a Fleet insurance policy, you have one policy which covers multiple vehicles, instead of having an individual policy in place for each of your vehicles. Many fleet owners find that Fleet insurance is helpful for reducing the amount of time they spend on administrative work, enabling them to add and remove vehicles from their policy as and when they need to.
With traditional Fleet insurance, you pay a fixed cost for your cover, which is adjusted when you add or remove vehicles from your policy.
So how is usage-based Fleet insurance different?
With usage-based Fleet insurance, your total premium depends on how much your vehicles are used. This means that your total premium can vary from month to month, but you are always charged according to how much cover you have received.
It’s important to make sure your vehicles are always covered to operate your fleet legally, so you pay a minimum base rate for your policy. Then, depending on the usage of your vehicles, which we can base on the mileage of your vehicles or how much time they spend on the road, you pay a flexible premium.
You’ll never pay any more than your agreed monthly cap, no matter how much your vehicles are driven, so your pricing is always fair and transparent. If your business is affected positively or negatively by seasonality, you will always see this reflected in your premium.
How does Zego work out the ‘flexible’ premium?
We partner with world-class telematics providers to help you get flexible insurance that suits your fleet. These devices track the distance your vehicles cover and how much time they spend out on the road, so you can pay only for the cover you actually use.
These devices also offer you access to a great range of benefits, which can help you manage the risk of your fleet and improve your operational efficiency.
How do I get a Fleet insurance quote with Zego?
At Zego, we aim to support fleet owners by providing insurance products that give them the cover they need at a fair price. We offer Fleet insurance policies to companies working across a range of sectors, including Private Hire, delivery, tradespeople and courier companies.
To learn more about our usage-based cover, and to get a quote for your vehicles, you can visit our Fleet insurance page.