Family Fleet Insurance
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Home Fleet Insurance
By having a family fleet insurance policy for the vehicles used by the people at your home residence, all parties will save money on their coverage. Some insurance firms refer to this type of policy as multi car insurance or mini fleet insurance. Either way, they are the same since multiple vehicles are covered under one umbrella policy, the premiums are discounted.
What is family fleet insurance?
This type of coverage is made to take care of the road risk requirement each vehicle is required as mandated by the UK government to legally operate on the road. The three levels of coverage that are to choose from the following;
By grouping all the vehicles at one residence together under one umbrella policy, a discount will be applied to each individual policy so each vehicle owner will pay less on their insurance premium.
How many vehicles can be included in a family fleet policy?
Most insurance firms offer this type of policy to cover between 3 and 5 vehicles but exceptions can be made for up to 10 vehicles. If there are only 2 vehicles to be covered the policy’s name is generally referred to as multi car insurance.
The most common exception for more than 5 vehicles in the policy is for the person who owns more than one vehicle. This can be a vehicle collector or just a person with a commuter car and another for the weekend trips.
What are the requirements for the vehicles to be included in a family fleet insurance policy?
Unlike what the name implies, the vehicle owners do not have to be related, but they can be. What is required is that each vehicle listed in a family fleet insurance policy be registered with the DVLA at the same residence.
Who can join the family fleet policy?
For some insurance firms in the UK, they impose a minimum age requirement of vehicle owners to participate in a family fleet policy. The two most common minimum ages are 21 and 25. For young drivers, the cost of their policy is higher than most others that might be included in a family fleet policy due to the added risk they pose to the insurance firm.
Do all of the policies have to be at the same level of coverage?
No, each individual policy under the family fleet policy is just that, an individual policy. The level of protection and options on it is the decision of the vehicle owner. This makes it possible for each policy to be tailored to the needs, desires and budget of each vehicle owner. This not only includes the road risk portion of the policy but also the options like breakdown cover.
What types of vehicles can be under a family policy?
A family fleet policy is made to cover any type of social, domestic and pleasure vehicle. In simple terms, no commercial vehicles can be listed. Because of that work vans for tradesmen can’t be included. What can be included are commuter, classic, performance and sports vehicles along with small trucks, motorhomes, campervans, private use horseboxes, motorcycles and ATVs.
In the UK a van is classified as a commercial vehicle so they can’t participate in a family policy unless given a waiver by the insurance firm. The waiver is for those that only use their vans for social, domestic and pleasure purposes.
How do I save money with a family fleet policy?
Insurance firms determine the cost of a premium for each vehicle by determining the risk the vehicle and the driver poses to them. Small vehicles with small displacement engines pose the smallest risk. Experienced drivers with no convictions also pose a very small risk. The smaller the risk the lower the premium.
On the other hand, inexperienced drivers and those with convictions on their driving record pose a high level of risk. Vehicles with large displacement engines and are large in size also pose a high level of risk to an insurance firm. The higher the risk the more the premiums will be.
To keep the overall premium of the family fleet insurance low, a reduction in risk to the insurance firm is required. This includes how and where the vehicles are parked when not in use. The lowest risk is in a locked facility like a garage or shed. The highest risk location is on the street.
The installation of theft deterrent devices like immobilizers and alarms on vehicles lowers the risk and many of them have automatic discounts provided by the insurance firms.
Most insurance firms offer the payments of the premiums to be made monthly, quarterly or annually. When paid annually the total amount is less than the other two. This is due to the interest charges on monthly and quarterly payments since the premium has an outstanding balance due.
By reducing the risk and obtaining multiple insurance quotes from several firms will help the vehicle owners to make an informed decision to fit their insurance needs.