Understanding the Difference Between Fleet Insurance vs Commercial Motor Insurance

You know that safeguarding your valuable vehicles against loss, damage, and theft is crucial — but when it comes to cover, what’s the difference between fleet insurance vs commercial motor insurance?

Briefly, the distinction is size and scope.

Commercial motor insurance is designed for fleets that include 15 motor vehicles or fewer. Conversely, motor fleet insurance is fashioned for those fleets of over 15 cars or trucks — and typically includes more industrial-grade motors such as large HGVs, earthmovers, and heavy plant.

At PIB, we can help you select the ideal cover for your vehicle type and usage — protecting your vital assets.

Why You Need Commercial or Fleet Vehicle Insurance

Without vehicles, the majority of Australian businesses would come to a standstill.

The lifeblood of commerce, these motors replenish stock, deliver products, transport people, move earth, demolish buildings, and deliver you to crucial meetings. However, unforeseen accidents, breakdowns, fire, or theft — if not dealt with swiftly — can severely damage your business.

Furthermore, for many organisations, personal insurance motor policies — even with business use cover — are inadequate to cover the high mileage, stock carriage, and multitude of drivers associated with corporate use.

Fleet and commercial motor insurance can ensure your business doesn’t come to a halt — saving you both headaches and revenue.

Commercial Motor Insurance

If your organisation has a fleet of 15 vehicles or smaller — commercial vehicle insurance is typically the most straightforward and affordable insurance cover.

Although similar to private car policies, it has the scope to cover the higher-risks associated with business use, such as:

  • High mileage.
  • Extended running hours.
  • Utilised at numerous sites.
  • Stock and product carriage.
  • Transporting customers and clients.
  • Driven by a team of different people.
  • Loading and unloading — especially by forklift.

Typically, these policies work on a best practice principle — with businesses selecting cover ranging from nominal statutory insurance safeguarding through to all-encompassing comprehensive shielding.

Motor Fleet Insurance

If your business has 15 or more vehicles — or has more complex insurance requirements — you need fleet insurance.

This cover has the benefits of:

  • Allowing frequent and straightforward addition and removal of vehicles.
  • One single policy renewal date covering all vehicles.
  • Permitting a plethora of named drivers on multiple vehicles.
  • Greater cost-efficiency than individual motor policies.

Additionally, fleet insurance permits a higher level of policy tailorability — more suitably addressing the particular requirements of your operation. While typically ranging from basic statutory cover demanded by law, through to fully comprehensive safeguarding — fleet insurance often also includes within the policy:

  • Hire vehicle in the event of theft.
  • Costs of towing and storing a vehicle
  • Cover against loss, theft, or damage brought about by an event covered in the policy.
  • New vehicle replacement after total loss within a period of time after original registration.

Furthermore, a myriad of fleet insurers deliver value-added cover to their policies — differentiating them from the plethora of other underwriters. These additional benefits can include fast claim processes, expert risk management and assessors, support with statutory annual motor declarations, and 24/7 claims.

Choosing Fleet vs Commercial Motor Insurance

As commercial and fleet motor insurance can be areas of complexity — it’s sensible to talk to one of our brokers to ensure the optimum cover.

At PIB, our 35 years of experience in multi-vehicle corporate insurance ensures that you have a partner working on your side to safeguard your valuable assets — while delivering the most affordable premiums.

Contact us today at (02) 9630 8788 to discuss how we can assist with your fleet insurance vs commercial motor insurance needs.