Fleet Insurance In Dubai & The UAE
Fleet Insurance is part of our Commercial Insurance policies. Whether you own a taxi company, car rental service, or delivery service, if your business relies on multiple vehicles to complete your daily operations you can protect your interests with fleet insurance. A commercial fleet insurance policy can be far more affordable than insuring all of your vehicles individually.
What is Fleet Insurance?
Types of Fleet Insurance In The UAE
Choosing the right type of fleet insurance is an important factor, as each kind can offer coverage specific to your needs. The different types of fleet insurance include:
- Third-Party Only: is an insurance coverage that does not pay for damages to the fleet’s vehicles or drivers; however, it does provide coverage for damages done by your driver/vehicle to a third party. Typically, third-party only is the most affordable type of fleet coverage.
- Third-Party: is an insurance that protects a business from damages caused by someone who is not the driver of the vehicle, hence the name, third-party. Typically, bodily injury coverage for fleet passengers is included, protecting your employees.
- Fire and Theft: provides coverage to your fleet’s vehicle if it is stolen or damaged in a fire. Typically, fire and theft coverage for fleets will also provide coverage to any third party.
- Fully Comprehensive: is an insurance coverage designed to cover damages that were caused by something other than a collision. This includes damages from things like fires, vandalism, tornadoes, and more!
What Does Fleet Insurance Cover?
Standard auto insurance policies provide coverage for a primary driver, even if there is more than one driver for the vehicle. Additionally, some standard auto policies only cover a specific driver for a specific vehicle, while other policies cover the auto regardless of who is driving. Fleet insurance, on the other hand, covers your company vehicles regardless of who is driving. You could have hundreds or thousands of drivers for your fleet and it wouldn’t matter which employee was driving which vehicle. Regardless of the driver, your assets are covered in the event of an accident.
While individual drivers can get away with basic coverage, fleets require maximum coverage to protect your assets. Compared to individual drivers, your fleet will be driven more frequently and by various drivers at any given time and therefore requires more advanced insurance coverage.
At a minimum, your fleet insurance should include:
- Increased physical damage coverage: Your commercial vehicles are one of your primary assets and they are far more expensive than a typical car. Not to mention, your commercial fleet is essential to your bottom line. Increased physical damage coverage will protect your vehicles from fire, theft, and other potential damage.
- Increased liability coverage: Drivers are hard to manage, especially when there are a dozen or more. Regardless of their experience or training, their extra time on the road can lead to increased risks and distractions. This additional coverage can be expanded to include employee liability coverage and bodily injury coverage as well.
- Trailer and product insurance: Depending on your business, you may need coverage for your cargo and your trailers.
- Roadside assistance: Your drivers may be spread all over the country, or even the greater MENA region. In the event of trouble, you might not be able to send help when it’s needed. Roadside assistance is designed to provide assistance 24/7, regardless of vehicle location (i.e. flat tire, running out of gas, towing services, etc.).
What Vehicles are Covered by Fleet Insurance?
Typically, a minimum of two vehicles is required to be considered a fleet. You can cover a mixture of vehicles ranging from trucks, cars, and suvs to forklift trucks, excavators, and more. Additionally, a wide range of businesses and industries can benefit from fleet insurance, including transportation, hauling, courier, and more.
- Door-to-door sales
- Resource trading companies
- Construction and contractors
- Delivery services
- Shuttles or limo services
- Bus or taxi services
- Rent a car fleets
- App-driven car fleets (i.e. Uber or Careem)
- Self-drive mobility (i.e. www.ekar.ae)
- Fleets for employee issued sedans, trucks, etc.
- And more
Does Fleet Insurance Cover My Drivers?
Fleet insurance is an auto insurance policy that covers property damage for your fleet cars. However, depending on how your policy is written, standard commercial fleet insurance does not include coverage for your drivers. Typically, only fully comprehensive includes insurance coverage for the driver.
Depending on the type of policy you have, commercial fleet insurance can include a variety of coverage options.
- Employee liability coverage
- Trailer coverage
- Public liability and property damage
- Tools and goods in transit coverage
- Roadside assistance
- Fire and theft coverage
- Bodily injury
- And more
Who Needs Fleet Insurance?
Benefits of Fleet Insurance
- Convenience: Unlike standalone auto insurance policies, which require a policy for each vehicle, fleet insurance provides your company with the opportunity to cover all of your vehicles with one policy and one convenient payment (monthly, quarterly, or yearly). This also means your company only needs to remember one policy date and only renew once a year no matter how many vehicles you insure.
- Discounted pricing: Fleet insurance also allows you to insure multiple vehicles under one policy. This works out to be cheaper than insuring your vehicles individually.
- Flexibility: Fleet insurance is designed to cover the vehicle and not the driver. This means you don’t have to assign specific drivers for specific vehicles. Essentially, you can assign any employee to drive any vehicle in your fleet to suit your needs.
- Nature of Business: Businesses own vehicles for various purposes, some of them may be for transporting goods, caring passengers, rent a car, tourism, etc. A fleet insurance policy can cover the specific risks involved and can be tailored to match business requirements.
- Addition & Deletion: If you purchase new vehicles for your company, they will be added easily to the existing fleet insurance policy. Additionally, the same applies if any vehicle is sold and has to be deleted from the fleet.
Other benefits can include car hire, personal belongings cover, geographical extension.
How Much Does Commercial Fleet Insurance Cost?
Fleet insurance can range in price depending on the type of fleet you own, your industry, how much coverage you need to protect your fleet, and the types of drivers for your fleet. When you apply for fleet insurance coverage, you’ll be asked a series of questions to help determine your premium, including and not limited to:
- How many vehicles are in your fleet?
- What types of vehicles do you want to insure (i.e. trucks, cars, motorcycles, etc.)?
- What business are you in?
- What condition are your vehicles in?
- How old are the vehicles in your fleet?
- How frequently are your vehicles used?
- Maintenance and tracking procedures?
- Any exterior stickers and paint?
- Leasing criteria?
- Where do you store your vehicles overnight?
- How old are your drivers (for comprehensive coverage only)?
- Do your drivers have good driving records (for comprehensive coverage only)?
Provide Peace of Mind with Fleet Insurance
Understanding how commercial fleet insurance can assist your business in the event of an accident or catastrophic event (such as a fire), not only protects your financial interests but also saves valuable resources when it comes time to renew your policy. At Petra, our team of insurance professionals are here to help you determine how much fleet insurance coverage your business requires to ensure you are fully protected in the event of mitigated circumstances.
