Automobile fleet insurance concerns companies that have a multitude of vehicles to their credit. This insurance covers the entire fleet of the company under a single contract. This makes it possible to centralize the management of the insurance and to reduce costs.
What is car fleet insurance?
Motor fleet insurance, as its name suggests, is intended to cover a fleet of vehicles . Although it can apply to individuals, it is particularly common in the professional setting.
Indeed, depending on the sector of activity or the nature of the company, a company can own a significant number of vehicles. Since the law provides that all land motor vehicles must be insured, it is in this context that automobile fleet insurance comes into play.
Thus, this insurance has the particularity of centralizing under the same contract the coverage of several vehicles. Often, insurers require that the fleet be equipped with at least 3 vehicles, or even 5
Unlike standard car insurance, fleet insurance does not include a reduction-increase coefficient (CRM). Indeed, the concept of bonus and malus is not taken into account in these insurances.
In practice, only one person acts as subscriber. It is generally the head of the company who benefits from the civil liability in his name. He is also identified as the main driver and is solely responsible for the contributions and the declaration of claims. Of course, this does not exclude the possibility that the vehicles are used by other individuals.
What types of vehicles are insured?
Taking out fleet insurance only depends on the quantity of cars to be insured. The type, on the other hand, does not matter. Indeed, and since it is a contract often negotiated on a case-by-case basis, such insurance can be applied to all types of vehicle fleets , whether they are vehicles:
Insurance can also cover two wheels or small motorized vehicles such as scooters.
Thus, all sectors of activity can take out vehicle fleet insurance: taxis, delivery people, traveling salespeople, field technicians, VTCs, road hauliers, etc.
In some contexts, it is even imposed by obligation. This is particularly the case for companies dedicated to the transport of goods or individuals or nomadic traders, such as food trucks .
What are the benefits of fleet insurance?
Being able to insure an entire fleet of vehicles has several advantages for the company:
ease of management : managing several separate contracts, their respective contributions and everything related to them can be overwhelming, car fleet insurance therefore saves time and organization.
reduction of insurance costs : as a general rule, such insurance is more advantageous than taking out several insurance policies.
Negotiating strength : this type of insurance often gives rise to greater leeway with regard to the negotiation of terms and conditions.
the absence of bonuses and penalties : as the company is no longer subject to the CRM coefficient, this can also represent an interesting financial advantage and economy of scale.
What is the difference between closed and open fleet?
We speak of a closed fleet contract when the company must notify the insurer of any change within its fleet. If new vehicles are added or others are no longer used, the premium may vary.
Conversely, an open fleet contract concerns what is called a “floating fleet”. This means that the number of vehicles covered may vary without consequence. Companies with a very large fleet are the most likely to take out this type of contract. The amount of the premium thus relates to the estimated or known quantity of vehicles.
What is the difference between natural float and artificial float?
So – called natural fleets concern companies that take out insurance for their own fleet. As mentioned above, it is therefore a single contract which concentrates all the contributions and all the guarantees. These are applicable without distinction to all vehicles.
On the other hand, artificial fleets target collective interest groups. It is a representative who is responsible for the subscription but the insurance covers different owners. In fact, vehicles can be grouped together under the same coverage due to owners belonging to the same group. It can thus be an association, a professional union, etc.
Unlike the regular contract, the one covering artificial fleets is subject to the bonus/malus clause. Moreover, the contribution of each of the insured can be affected individually.