Important Tips For The Small Fleet Operator

Many small to medium businesses in South Africa operate small fleets of vehicles to support their operations. We caught up with our Business Insurance team to find out what the operator of a small fleet of vehicles should consider when looking for insurance. 

  • What is your headline advice for the small fleet owner when insuring business vehicles? Most important of all, do not skimp on insurance or think of it as a ‘nice to have’. Insuring your fleet is essential as they are core to your business operations and are costly to replace.
  • I have a couple of vehicles, and the drivers may change depending on the job that needs to be done. What do I tell my insurer? Depending on who you are insured with, you may be able to specify multiple regular drivers for each of your vehicles. This can reduce the premium charged, since the driver’s individual profile is considered when calculating the premium.

    Alternatively, if you’d like greater flexibility in terms of who can drive your vehicles, you could consider choosing a ‘pool driver’ option - but the risk of damage or loss is deemed higher by insurers and therefore your premium may be higher.

    When regular drivers are assigned to each vehicle, it is important for you, as the fleet owner, to always have the correct driver details noted on your policy and update your insurer regularly when new drivers are introduced to the team.
  • What are the available options in terms of excesses? When it comes to excess, there are usually two options to choose from – a flat excess or a percentage-based one. The flat excess (as opposed to the percentage-based excesses popular in the industry) means no surprises in the event of a claim. When it comes to a percentage-based excess, in the event of large losses, the unbudgeted expense of a percentage-based excess can be costly.
  • What if I only have one or two vehicles; is a business specific solution appropriate for me? Definitely!  No matter the size of your business, it is always better to get a solution tailored to your unique business.
  • Will fleet vehicles be covered for private (personal) use outside of business hours? That may depend on your specific policy, but generally speaking, business insurance covers the vehicle for business and private use as long as the driver was authorised to use the vehicle for private trips after hours.
  • Are there certain terms and conditions that the fleet owner should be aware of? There is no set list of terms and conditions applied by all insurers; they differ from one provider to the next. The best advice is always to read your entire policy wording and ask questions if there is anything you don’t fully understand. Make sure that all driver licence-related conditions are clearly understood, as Professional Driving Permits (PDPs) are often required for certain vehicle classifications and uses

Get the right Business Insurance cover for your fleet today!

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