What is Fleet insurance?

Written by Benedict Harrison

Published on

Our guide to how Fleet insurance works and how Zego's usage-based cover differs from tradidional policies.

Image of fleet of cars

If you’re a business owner with two or more vehicles, you may wish to consider a Fleet insurance policy when looking for cover. Fleet insurance is a type of policy that allows you to insure all of your vehicles together, even if you have different types of vehicle.

In this post, we’ll look at how Fleet insurance works, how Zego’s usage-based Fleet insurance is different from a traditional policy and we’ll explain how you can get a quote for your vehicles with Zego.

How does Fleet insurance work?

In short, instead of having multiple policies to cover multiple vehicles, you have one policy which covers all of your vehicles. Depending on what type of business you run and how your vehicles are used, your policy will need to include cover for work-related activities as well as standard Social, Domestic & Pleasure insurance.

As long as they meet the criteria which insurers have in place, any driver that works for your business will be able to use any of the vehicles insured on your policy. Insurers may have restrictions, such as minimum age criteria, or a maximum number of points on a driver’s licence for a driver to be covered under your fleet policy.

Is Fleet insurance better than individual policies?

Many fleet owners find that Fleet insurance helps to reduce the administrative work associated with managing insurance. When you have a Fleet insurance policy in place, you can add or remove new vehicles whenever you need to, helping you to save time. At Zego, we have designed a dedicated management portal to give you full control over the vehicles and drivers you have on your policy.

How does Zego’s Fleet insurance work?

Unlike traditional Fleet insurance, Zego’s usage-based cover charges you based on how much cover you actually use. We build custom premiums based on your fleet, and the time or distance that your drivers cover.

Image of fleet insurance compared to a traditional policy

You pay a minimum base rate for your fleet policy to ensure your vehicles are always covered. Then, depending on the usage of your vehicles, which we base either on the mileage of your vehicles or how much time they spend on the road, you pay a flexible premium. You won’t pay any more than your agreed monthly cap, no matter how much your vehicles are used, so your pricing is always fair and transparent.

How does Zego work out the ‘flexible’ premium?

By working together with world-class telematics providers, we help you get flexible insurance that suits your fleet. These devices keep track of how much distance your vehicles cover and how much time they spend out on the road, so you can pay for the cover you use.

You can also use these devices to access a range of benefits to manage your fleet’s risk 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. To learn more about our usage-based cover, and to get a quote for your vehicles, you can visit our Fleet insurance page.