Fleet insurance
Car Fleet Insurance
One policy for the company cars, with the drivers, the private use and the pool cars declared properly
One fleet policy for the cars the company owns or leases, on business use with commuting and, where declared, private use by the employee who has the car. Any-driver or named-driver terms, cars added and removed through the year, and pool cars kept at the premises on the same schedule. What you get depends on the insurer.
- Allocated cars, pool cars and sales cars on one policy
- Any-driver terms for eligible employees
- Private use declared, where the insurer allows it
- FCA authorised and regulated
Quick answerCar fleet insurance covers two or more cars a business owns or leases on one motor policy, with one renewal date, one schedule of vehicles and driver terms that are either open to eligible employees or limited to named people. It is the policy for allocated company cars, pool cars and sales cars. It does not insure the cars employees own and drive for work, which sit on their own policies. Tell MyMoneyComparison.com about your business once, and specialist UK fleet brokers can come back to you with quotes to compare.
This page is about who holds the keys. What fleet insurance is, the cover options, what it costs and how to compare it are on our fleet insurance page. Here we cover what a fleet of cars adds: the allocated car that goes home at night, the pool car anyone in the office can take, the private use and the partner who drives, and the cars employees own that the policy does not insure at all, which have a page of their own at grey fleet insurance.
At a glance
Company Cars on One Policy, in Short
The short answers before the detail below.
- Cars the company owns or leases
- The policy insures the cars on the schedule. Cars employees own and drive for work are not on it
- Allocated cars and pool cars
- A car kept by one employee, and a car anyone eligible can book, sit on the same policy on different terms
- Any driver or named drivers
- Open driving for employees who meet the age and licence terms, or a list of names, or both
- Private use, if declared
- Many policies allow private use by the drivers on the policy’s terms; a partner driving is a separate declaration
- Cars on and off in the year
- New cars added and old ones removed on notification, with the premium adjusted
- Everything else
- Cover options, mixed fleets and pricing work as on any fleet policy
The basics
What Is Car Fleet Insurance?
A motor fleet policy for two or more cars a business owns or leases and uses for its work. Some insurers start at three vehicles. It is written for a business whose cars are driven by employees, go home with them, and change through the year.
Three things set a fleet of cars apart from a fleet of vans.
The keys go home
An allocated company car is kept by one employee and, on many policies, driven privately as well as for work. The policy has to say so, and say who else may drive it.
The drivers are the staff
Sales people, managers, engineers and the office. Any-driver terms suit a pool of eligible employees; named terms suit a car with one keeper.
Some cars are not yours
Cars employees own and use for work, and cars supplied through a salary sacrifice scheme, are often insured elsewhere. A fleet policy insures what is on its schedule.
It is still a fleet policy. The cover options, the driver options and the pricing work as on our fleet insurance page. A fleet with vans in it is on our van fleet insurance page, and a business with only a handful of cars may find our mini fleet insurance page the better fit.
How it works
How a Car Fleet Policy Is Set Up
You describe the cars, who keeps them and who drives them, the broker places the fleet, and the policy sets the driver and use terms for the year.
Describe the cars and their keepers
Each car, whether owned or leased, whether it is allocated to one person or shared from the premises, where it is kept overnight, and whether private use is expected.
Describe the drivers
How many people drive, their ages and licence histories, whether partners or family will drive an allocated car, and how the business checks licences.
The broker places the fleet
Specialist fleet brokers know which insurers write car fleets from two vehicles, which allow private use and partner driving, and which want named drivers below a certain age.
The policy sets the terms
Any-driver cover applies to anyone meeting the minimum age and licence-held period; named cover lists the drivers. Cars go on and come off the schedule as the fleet changes, with the premium adjusted.
What it covers
What Does Car Fleet Insurance Cover?
The cars as on any fleet, on the company’s business use, plus the private use and driver flexibility a fleet of company cars needs.
| What | Where it stands | What to know |
|---|---|---|
| The cars | Standard | Accident, fire, theft and third-party cover on the company’s business use, with third-party-only and comprehensive options |
| Business use and commuting | Standard | Driving for the company’s work and to and from the workplace |
| Private use | Where declared | Many policies allow it for the drivers on the policy’s terms; some limit it to the keeper; some extend to a partner, by declaration |
| Any driver or named drivers | Your choice | Open driving above a minimum age for employees, or a list of names, or a mix |
| Cars added mid-term | Standard on notification | New cars on, old ones off, premium adjusted pro rata |
| Windscreen | Often included on comprehensive | Glass repair and replacement, sometimes with its own excess |
| Courtesy car and breakdown | Optional | A car while yours is repaired, and roadside and recovery, on many policies |
| Telematics | Sometimes rewarded | Some insurers offer better terms where trackers or driver monitoring are fitted |
Private use is the line to read. A company car driven to the shops on a Saturday is private use, and a policy that does not allow it does not cover it. Many car fleet policies can include it, and where they do it usually applies to any permitted driver on the policy’s terms; some insurers limit it to the keeper of an allocated car. A partner or family member driving is a separate question, and the answer differs by insurer.
Exclusions
The Cars and Journeys a Car Fleet Policy Does Not Insure
The usual fleet exclusions apply, and a fleet of company cars adds a few of its own.
Cars employees own
A member of staff driving their own car to a client is on their own policy, which needs business use on it. The fleet policy does not insure a car that is not on its schedule. See our grey fleet insurance page.
Private use that was never declared
Where the policy is business use only, the weekend trip and the school run are outside it. Where private use is allowed it usually follows the policy’s driver terms, though some insurers limit it to the keeper of an allocated car.
The partner, the son, the friend
A family member or partner driving an allocated car is covered only where the policy says so. Some insurers allow a declared partner; few allow anyone else.
A driver outside the terms
Too young, too few years on a licence, too many points. On an any-driver fleet the terms are the policy; a driver outside them is not covered unless named.
Carrying passengers or goods for payment
Ferrying colleagues is fine. Carrying paying passengers or other people’s goods is a different class of use and needs a different policy.
Wear, tear and what is inside
Mechanical failure, tyres, and personal belongings left in the car are outside the motor policy, or covered only to a small limit where a policy lists them.
The cars
Allocated Cars, Pool Cars and Sales Cars on One Schedule
A car fleet is rated on the cars and the drivers like any fleet, and then on how each car is used: who keeps it, where it sleeps and how far it goes.
| Fleet | What it is | What to know |
|---|---|---|
| Allocated company cars | One keeper, taken home at night | Usually with private use declared; rated on the keeper and where the car sleeps |
| Pool cars | Shared from the premises, booked as needed | Any-driver terms suit them; kept at the workplace and rated on the driver pool |
| Sales and field cars | High mileage, on the road all week | Rated on mileage and the driver; high mileage tends to mean more claims, and insurers rate them accordingly |
| Directors’ and executive cars | Higher value, few drivers | Rated on value; often named drivers, settled on market value like the rest of the fleet |
| Leased and contract-hire cars | Owned by the leasing company | The lessor usually wants comprehensive cover and to be noted on the policy |
| Electric and hybrid cars | The fleet in transition | The charging equipment and battery on our electric vehicle fleet page |
Related pages. Electric cars are on our electric vehicle fleet insurance page, driver options on our any driver fleet insurance page, and mixing personal and business vehicles on one policy is in our guide can you mix personal and business vehicles on fleet cover.
Who it is for
The Firms That Hand Out Company Cars
Any business with two or more cars in its own name or on lease: a sales team on the road, an estate agency with cars for viewings, a care provider with pool cars, a security or cleaning contractor whose supervisors drive between sites, or a company whose directors and managers have a car with the job.
The question is whose name is on the logbook. A car the company owns or leases belongs on the fleet policy. A car an employee owns, even one the company pays a mileage allowance for, belongs on the employee’s own policy with business use added, and the employer usually checks that it is there. Cars supplied through a salary sacrifice scheme are often insured by the scheme provider rather than on the fleet. Sorting the cars into those three groups is the first job of a quote.
Allocated cars
One car, one keeper
The car goes home with the employee and is driven privately at the weekend. The policy names the private use, sets who else may drive, and is rated on the keeper and where the car is kept overnight.
Pool cars
Shared cars, many drivers
Kept at the premises and booked as needed. Any-driver terms suit them, with the business checking licences and keeping a record of who took which car. Rated on the pool of drivers, not on one person.
Small fleets and large ones. A business with two or three cars is sometimes better placed on our mini fleet insurance page; a company with vans as well as cars on our van fleet insurance page. The wider guide to insuring company cars is our fleet car insurance guide for businesses.
The choice
Company Cars on the Fleet vs Employees’ Own Cars
A business whose staff drive for work has cars on the fleet and cars that are not, and the two are insured in different places.
| On your fleet | Their own car | |
|---|---|---|
| The car | Owned or leased by the company, on the schedule | Owned by the employee, on their own policy |
| Business use | The fleet policy’s class of use | Added to the employee’s private policy, and checked by the employer |
| Own damage to the car | Your policy, your excess | Their policy, their excess |
| Third-party liability on a work journey | Your policy | Their policy first; some employers carry cover in case it fails |
| Who may drive | Your policy’s driver terms | Their policy’s named or insured drivers |
| Private use | Where the policy allows it | Their own policy, as normal |
| When the employee leaves | The car stays, the keeper changes | Nothing changes on your policy |
| Claims record | Their claims land on your fleet’s record | Their claims stay with them |
The employer still has an interest in the cars it does not insure. An employee driving their own car on company business without business use on their policy is a problem for the employee first and the employer second, which is why many firms check certificates and licences each year. How that side is managed and insured is on our grey fleet insurance page.
Cost
What a Car Fleet Premium Is Built From
The cars, the drivers, the mileage, where the cars sleep and the claims record, as on any fleet, with the driver terms and the private use weighing most on a fleet of cars. We do not print average premiums.
Why the driver terms are the rating factor
Open driving above a younger minimum age is priced for the employee who has not joined yet. A higher minimum age, a longer licence-held period, or named drivers for the younger ones each narrow the risk.
Why private use is priced
A car that goes home and is driven at the weekend does more miles, by more people, in more places than a car locked in the yard. Insurers rate it that way.
What the quote is rated on
In roughly this order
- DriversAny driver or named; minimum age; licence checksBase
- UseBusiness only, or with private use; commuting; partnersRate
- Cars and mileageValue, performance, annual miles per carRate
- Claims recordConfirmed claims experience, or the business if newRate
- Risk managementTelematics, driver training, overnight parkingAdjust
The drivers
The trade-off is who can take a car tomorrow. A tighter any-driver band costs less and covers fewer of the staff.
The record
How fleet-rated and claims-experience pricing work is on our CCE guide. A new business is priced on itself until the fleet has a record of its own.
The management
Telematics, licence checks, driver training and where the cars are kept overnight are what an insurer asks about, and some offer better terms for them.
The keys
Who Holds the Keys: Private Use, Partners and Pool Cars
Four questions about the keys decide whether a car fleet claim is paid as expected.
Is private use declared?
Many car fleet policies allow private use, and some are business use only. Where it is allowed it usually applies to any driver within the policy’s terms; some insurers limit it to the keeper of an allocated car, so a colleague borrowing the car for the weekend is worth checking.
Who else may drive the allocated car?
A partner or spouse driving a company car is covered only where the policy says so. Some insurers allow a declared partner; some allow it only on named-driver terms; some do not allow it at all. It is a question to ask before the car goes home.
Who signed the pool car out?
On any-driver terms the policy covers anyone who meets its age and licence terms. The insurer expects the business to know who took the car, to have checked their licence, and to have kept the record. Many insurers ask how licences are checked and how often.
Is the car on the schedule yet?
Many fleet policies cover a new car automatically for a short period as long as it is notified within that time; some do not, so it is worth checking before a car delivered on Friday is driven on Saturday. The fleet’s cars also need to be on the Motor Insurance Database, and on a fleet policy keeping that list current is often the business’s job.
Quote checklist
The Car List a Fleet Broker Works From
The fleet as for any fleet, plus how each car is used: who keeps it, whether it goes home, and who else drives it.
The cars
Make, model, registration and value for each, whether owned or leased, and whether it is allocated to one person or shared.
The drivers
How many, their ages and licence-held periods, whether any have points or convictions, and how the business checks licences.
Where the cars sleep
The premises, a compound, or employees’ homes, and roughly how the fleet splits between them.
The use and the miles
Business only or with private use; commuting; partners driving; annual mileage per car or for the fleet.
The claims record
A few years of confirmed claims experience if you have it; the business and the drivers’ own records if you are new.
Risk management
Telematics, dashcams, driver training, and whether you want a courtesy car, breakdown or windscreen cover on the policy.
The lease agreements are worth having to hand. They say what cover the lessor requires and whether it wants to be noted on the policy. The renewal questions for any fleet are on our fleet renewal checklist, and adding cars mid-term is in our guide how to add or remove vehicles from a fleet policy.
Comparing
Comparing Car Fleet Quotes on the Driver Terms
The premium and the fleet size are the first two numbers on any comparison. The driver terms and the private use are what decide whether a claim is paid.
On the drivers
- The minimum age and licence-held period on any-driver cover
- Whether younger or higher-risk drivers can be named instead
- What the insurer expects on licence checks
On the use
- Whether private use is included, and whether it is limited to the keeper of an allocated car
- Whether a partner or spouse may drive, and on what terms
- Whether commuting is included for pool cars taken home
On the cars
- How a new car is added and from when it is covered
- Whether a courtesy car, windscreen and breakdown are included or optional
- What the lessor requires on leased cars, and whether the policy meets it
In your own plans
- Cars joining or leaving this year, and whether the fleet minimum still suits you
- Staff who will drive their own cars, and how that is checked
- Electric cars coming, and the charging cover that comes with them
Two things catch car fleets out. A partner driving an allocated car the policy never allowed for, and a new starter under the any-driver minimum age who was handed keys anyway. Neither shows on a premium comparison. The standard fleet terms are in our plain English jargon guide, and comparing fleet quotes generally is on our fleet insurance page.
Cutting costs
Trimming a Car Fleet Premium Without Narrowing the Drivers
The levers are the drivers, the use, the records and the way the cars are run. We publish no savings figures.
Set the driver band to the staff you have
A higher minimum age or a longer licence-held period narrows the risk. The one or two who fall outside can often be named individually.
Declare the use honestly, and no wider
Business use only on pool cars that never leave the premises, private use only on the cars that need it. Cover you are not using is premium you are paying.
Fit telematics where it helps
Some insurers offer better terms where trackers or driver monitoring are fitted, and the data lets a business see which cars and drivers are costing it. Our guide to fleet trackers and telematics has more.
Check licences and keep the record
An insurer that sees licences checked and pool cars signed out rates the fleet as managed. It is also what settles who was driving after a claim.
Build and explain the record
A confirmed claims experience over a few years is what moves a business off new-business rates. Losses that were not the driver’s fault are worth explaining to the broker. How a fleet’s record works is in our guide to the fleet no claims discount.
Keep the schedule current
Cars off the policy the day they go back to the lessor, and on it the day they arrive. A current schedule is what the insurer and the Motor Insurance Database both want.
Glossary
The Car Fleet Glossary
The terms that come up most on a car fleet policy.
- Allocated car
- A company car kept by one employee, usually taken home and often driven privately as well as for work.
- Pool car
- A company car kept at the premises and shared by whoever needs it. Rated on the pool of drivers.
- Grey fleet
- Cars employees own and drive for work. Not on the fleet policy; insured on the employee’s own policy with business use.
- Business use
- Driving for the company’s work. On a private policy it is a class added to social and commuting use; on a fleet policy it is the policy’s basis.
- Private use
- Driving a company car for anything other than work and commuting. Allowed on many car fleet policies where declared; some insurers limit it to the keeper of an allocated car.
- Any driver
- Cover for anyone meeting the policy’s minimum age and licence-held terms. Suits pool cars and larger fleets.
- Named driver
- Cover for the drivers listed on the policy, and no one else. Used for allocated cars and for drivers outside the any-driver terms.
- Fleet schedule
- The list of vehicles on the policy. Cars are added and removed on notification through the year.
- Lessor’s interest
- A leasing company’s stake in a car it owns. Leases usually want comprehensive cover and the lessor noted on the policy.
- Confirmed claims experience
- The insurer’s record of a fleet’s claims over recent years, used to rate the renewal.
- Motor Insurance Database
- The UK record of insured vehicles. A fleet’s cars need to be on it, and on a fleet policy the business often updates it.
- Telematics
- Trackers or driver-monitoring devices fitted to the cars. Some insurers offer better terms where they are used.
Anything not listed here is covered in our plain English jargon guide.
Why MyMoneyComparison.com
How MyMoneyComparison.com Fits a Car Fleet
MyMoneyComparison.com is an FCA-authorised UK comparison service that introduces fleet operators to specialist fleet brokers. We do not sell insurance and we do not give advice: the broker you choose arranges the policy. Using us is free.
One form, whole fleet
Describe the fleet once, business type first, instead of repeating the car list to each broker.
Advice given
We are an introducer, not a broker. We do not sell policies or recommend one insurer or product over another. Read our editorial policy.
Authorised and regulated
MyMoneyComparison.com Ltd appears on the FCA register under FRN 916241.
Incorporated
A UK company since 2013. FCA authorisation is separate and later; the register carries its date.
FAQs
Car Fleet Insurance FAQs
Answers on private use, partners, pool cars, leased cars, licence checks and employees’ own cars.
What is car fleet insurance?
A motor fleet policy for two or more cars a business owns or leases and uses for its work. Some insurers start at three vehicles. It works like any fleet policy, with any-driver or named-driver options and cars added and removed through the year, and it is written for a business whose cars are driven by employees, go home with them and, where declared, are used privately.
Can employees use their company cars privately?
On many car fleet policies, yes, where private use is declared. Some policies are business use only. Where private use is allowed it usually applies to any driver within the policy’s terms, though some insurers limit it to the keeper of an allocated car, so a colleague borrowing the car for the weekend is worth checking. Whether the use is declared, and for whom, is the first thing to check on the schedule.
Can my partner or spouse drive my company car?
Only where the policy says so. Some insurers allow a declared partner to drive an allocated car; some allow it only on named-driver terms; some do not allow it at all. It is a question to settle before the car goes home, not after a claim, and the answer differs from one insurer to the next.
Does the fleet policy cover staff who drive their own cars for work?
No. A car an employee owns is insured on their own policy, which needs business use added to it for work journeys, and the employer usually checks that it is there. The fleet policy insures only the cars on its schedule. How that side of a business is managed and insured is on our grey fleet insurance page.
What does any-driver cover mean on a car fleet?
Anyone who meets the policy’s minimum age and licence-held terms, and is not disqualified, may drive the fleet’s cars without being named. It suits pool cars and businesses whose staff change. Many insurers set the minimum age above the youngest new starter, so younger drivers are sometimes named individually instead.
Do pool cars and allocated cars go on the same policy?
Usually, on different terms. Pool cars kept at the premises suit any-driver cover and are rated on the pool of drivers; an allocated car that goes home with one person is rated on that keeper, where the car is kept overnight and whether private use is declared. Both sit on one schedule with one renewal date.
What about leased and contract-hire cars?
They go on the fleet policy like owned cars, with the leasing company usually requiring comprehensive cover and asking to be noted on the policy as owner. The lease agreement says what it wants. Any shortfall between what the insurer pays and what is owed on the lease is a separate matter, and not part of the fleet policy.
How is a new car added mid-term?
You tell the broker or insurer, the car goes on the schedule and the premium is adjusted pro rata. Many fleet policies cover a new car automatically for a short period as long as it is notified within that time; some do not, so the change is best declared before the car is driven. The steps are in our guide to adding and removing vehicles from a fleet policy.
Does the business have to check drivers’ licences?
Many insurers expect it, and some ask how it is done and how often. A business that checks licences before handing over keys, and keeps a record of who signed out a pool car, is rated as a managed fleet, and the record is what settles who was driving after a claim. Driver training is a further step some insurers reward.
Is commuting covered?
Driving to and from the usual workplace is included on car fleet policies as a matter of course, alongside business use. Where it becomes a question is a pool car taken home overnight, or an allocated car on a policy written as business use only; in both cases it is worth checking what the schedule says.
Do telematics and dashcams help?
Often. Some insurers offer better terms where trackers or driver-monitoring devices are fitted, and the data lets a business see which cars and drivers are costing it. Dashcam footage settles the disputed knock. Neither is universal, and what an insurer offers for them is a question for the broker.
How is a new business priced?
On itself: the cars, the drivers and their terms, the use, the mileage and how the fleet is managed. Once the fleet has been insured for a while, insurers rate it on its confirmed claims experience over recent years instead. How that works is on our CCE guide. We do not print average premiums, because no figure would be true for a particular fleet.
Can I mix cars with vans on one fleet policy?
Usually, with each vehicle declared for what it does. The cars are rated as cars and the vans as vans, and a van carrying other people’s goods for payment is a different class of use that needs declaring. What a fleet policy does for mixed vehicles is on our fleet insurance page, and vans in particular on our van fleet insurance page.
What does the broker want to see for a car fleet quote?
The car list with values, whether each is owned or leased, allocated or shared; the drivers, their ages and licence-held periods and how you check licences; the use, including private use and partners; where the cars are kept overnight; annual mileage; your claims record; and any lease requirements. The business type starts the form; the driver and use detail is what the broker places to.
Why does this page not show car fleet insurance prices?
Because no figure would be true for you. A car fleet is priced on its cars, its drivers and their terms, its use and mileage, how it is managed and its claims record, in combinations no average captures. If we publish data of our own one day, it will carry a sample size and a date.
Ready when you are
Get the Company Cars Quoted as One Fleet
Tell us the business type. If you picked it at the top of this page it is already on the button below. Specialist UK fleet brokers can then come back with quotes for the fleet. Free to use, with no obligation to buy.
- Allocated cars, pool cars and sales cars on one policy
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About this page
This page is about who holds the keys: what a fleet of company cars adds to a fleet policy. Fleet insurance in general is on our fleet insurance page, and the cars employees own and drive for work on our grey fleet insurance page. It is general information rather than advice. Policies differ, so read your own documents and put the questions raised here to your insurer or broker.
How we approached this page
- Published UK fleet insurer, leasing company and specialist broker pages, for the fleet minimum, driver terms, private use, partner driving, licence checks and claims experience points described throughout
- UK guidance on business use classes and on cars employees own and drive for work, for the line between the fleet policy and the employee’s own
- The Motor Insurance Database’s own guidance for fleet policyholders; the Financial Conduct Authority register, for checking a firm
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