If you’re self-employed and run two or more vehicles for work, there’s a very common misconception holding you back: the idea that fleet insurance is only for limited companies or large businesses. It isn’t. Sole traders qualify for fleet cover, and in many cases, it’s the cheapest and most practical way to insure multiple work vehicles under a single policy.
This guide explains exactly how fleet insurance works for the self-employed, what it costs, which trade types qualify, and, crucially, how to make sure you get the right cover rather than the wrong one at renewal.
Key Fact
You do not need to be a limited company to get fleet insurance. Sole traders operating two or more vehicles for business use can access the same policies, the same broker panels, and in most cases the same pricing structures as any other business.
Can a Sole Trader Actually Get Fleet Insurance?
Yes, and this surprises many self-employed people who have spent years insuring each van or car individually. Fleet insurance is a commercial motor policy, and commercial motor policies are available to any legitimate business operator, regardless of whether that’s a limited company, a partnership, or a one-person sole trader.
Insurers assess risk based on the vehicles, how they’re used, the drivers, and your claims history. They do not require you to be incorporated. What they do require is that the vehicles are used for genuine business purposes, not just personal motoring.
The minimum threshold for most fleet policies is two vehicles, although some specialist products pitched at sole traders start at three. If you operate just one vehicle, a standard commercial vehicle or business car policy is the right product. As soon as you add a second work vehicle, whether that’s a second van, a car alongside a van, or any other combination, fleet cover becomes an option worth comparing.
Who Qualifies as a Sole Trader for Fleet Insurance?
- ✓ Self-employed tradespeople (plumbers, electricians, builders, gas engineers)
- ✓ Sole trader courier and delivery operators running 2+ vans
- ✓ Self-employed landscapers or groundskeepers with multiple vehicles
- ✓ One-person cleaning businesses using a car and a van
- ✓ Freelance contractors who use multiple vehicles across different job sites
- ✓ Mobile mechanics, caterers, or mobile traders with two or more vehicles
Fleet Insurance vs Insuring Each Vehicle Separately: What’s the Difference?
The practical differences go beyond cost. When you insure vehicles individually, you end up managing multiple renewal dates, multiple policy documents, multiple insurers, and potentially multiple claims processes. That’s manageable with one van. With two or three, it becomes a serious administrative burden, and the costs add up fast because you lose any bundling advantage.
Fleet insurance consolidates everything into a single policy, a single renewal date, and one point of contact for all claims. That simplification has real commercial value, especially for a sole trader who doesn’t have a finance team handling renewals.
| Factor | Individual Policies (per vehicle) | Fleet Policy |
|---|---|---|
| Minimum vehicles | 1 | 2+ |
| Number of renewal dates | One per vehicle | 1 date |
| Add vehicles mid-term | New policy required | Yes — mid-term |
| Named vs any driver | Named only (typically) | Both available |
| Cost with 3+ vehicles | Higher overall | Usually cheaper |
| Claims management | Separate per policy | Single insurer |
| Admin overhead | High | Low |
How Much Does Fleet Insurance Cost for a Sole Trader?
Cost varies considerably depending on the number and type of vehicles, the nature of the work, your claims history, and whether you opt for named driver or any driver cover. As a sole trader, you will often be the primary or only driver, which can work in your favour on price, since insurers are assessing a more predictable and limited risk pool.
The table below shows indicative annual premiums for typical sole trader fleet scenarios in the UK. These are guide figures based on current market conditions — actual quotes will differ based on your individual profile.
| Sole Trader Setup | Vehicles | Typical Annual Cost | Per Vehicle |
|---|---|---|---|
| Plumber — 2 panel vans | 2 | £1,200–£2,200 | £600–£1,100 |
| Electrician — 1 van + 1 car | 2 | £900–£1,800 | £450–£900 |
| Courier — 3 small vans | 3 | £2,800–£5,500 | £930–£1,833 |
| Landscaper — 2 pickups + trailer | 2 | £1,400–£2,600 | £700–£1,300 |
| Builder — 2 large vans | 2 | £1,500–£3,000 | £750–£1,500 |
Courier and delivery work consistently attracts higher premiums than other trades because of the high mileage, time-critical driving, and elevated claims frequency across the sector. If you operate in this space, telematics can make a meaningful difference; insurers often offer premium reductions of 10–20% for fleets with tracking installed. You can read more in our guide to fleet telematics and how it reduces insurance costs.
âš What Pushes Your Premium Up as a Sole Trader
- › Adding employees or regular subcontractors as named drivers, especially younger or recently qualified
- › Courier, delivery, or hire-and-reward use (highest risk category)
- › Claims in the past three years, even minor ones
- › Older vehicles with high mileage or poor safety ratings
- › Any driver cover rather than a named driver (more flexibility but higher cost)
- › High-value tools or equipment stored in vehicles overnight
Named Driver vs Any Driver: Which Is Right for a Sole Trader?
This is one of the most important decisions you’ll make when arranging fleet cover. Named driver policies list specific individuals who are permitted to drive, typically cheaper rate because the insurer can assess each driver’s risk profile precisely. Any driver policies allow anyone with a valid licence to drive any vehicle on the fleet, more flexible, but priced to reflect that open risk.
For most sole traders, a named driver policy is the right answer. If it’s just you driving your vehicles, or you and one regular employee, a named driver policy gives you comprehensive cover at the lowest possible premium. You’re not paying for flexibility you don’t need.
The case for any driver cover arises when you regularly bring in subcontractors, use agency staff, or have vehicles that multiple people access at short notice. In those situations, the administrative headache of keeping named driver lists current can outweigh the cost savings, and any driver becomes the practical choice.
✓ Named Driver — Best For
- · Solo operators (just you driving)
- · 1–2 trusted regular employees
- · Keeping premium costs down
- · Experienced, clean-licence drivers
✓ Any Driver — Best For
- · Regular subcontractors or agency staff
- · Shared vehicles across a job site
- · Fast-changing driver requirements
- · Fleets are growing quickly
What Does Sole Trader Fleet Insurance Actually Cover?
Cover levels mirror those available to any other commercial fleet. The three standard tiers, third party only, third party fire and theft, and comprehensive, all apply. The vast majority of sole traders choose comprehensive cover because the cost difference is often marginal once you’re bundling multiple vehicles, and the protection is considerably greater.
Beyond the basic cover level, the following add-ons are worth considering as a self-employed operator:
- → Tools and equipment cover — Standard fleet policies cover vehicle damage, not the tools inside. If you carry expensive equipment, you need a separate tools in transit extension or a combined trades policy. Insurers will ask specifically about overnight parking — street parking significantly increases premiums for tool theft.
- → Breakdown cover — A vehicle off the road means a day’s work lost. Fleet breakdown cover as a policy add-on is almost always worth the extra cost for sole traders who can’t absorb downtime the way larger businesses can.
- → Replacement vehicle — Some fleet policies include a courtesy vehicle; others offer this as an optional extra. For a sole trader, a day without a work vehicle can mean cancelled jobs and lost income.
- → Legal expenses cover — Often included as standard on better fleet policies. Covers the cost of legal action if a third party makes a claim against you, or if you need to pursue a third party who caused damage.
- → Goods in transit — Relevant if you transport clients’ property or materials as part of your work. Not included in standard fleet cover and often overlooked until a claim arises.
How to Get the Best Fleet Insurance Quote as a Sole Trader
The single biggest mistake sole traders make when arranging fleet insurance is treating the process like buying car insurance, going straight to a comparison site, filling in a quick form, and picking the cheapest option. Fleet insurance doesn’t work that way. It’s a commercial product assessed on the specific profile of your business, and the quote you get depends entirely on the quality of information you provide.
Working through a specialist broker, which is how MyMoneyComparison connects you with fleet cover, gives you access to the full market, including insurers who don’t appear on general comparison sites. A good broker will also help you present your risk profile accurately, which directly affects what you’re quoted.
💡 How to Strengthen Your Quote Position
- ✓ Have your full claims history ready for the past three years — including any incidents you didn’t claim on
- ✓ Provide accurate vehicle schedules — registration, make, model, estimated annual mileage per vehicle
- ✓ Detail how vehicles are kept overnight — locked private garage or secure yard reduces premiums vs street parking
- ✓ Mention any security measures already fitted — dashcams, trackers, immobilisers
- ✓ Be precise about business use — “general tradesperson” is too vague; specify your trade and typical journey types
- ✓ Ask specifically about multi-vehicle discounts — some insurers apply a discount from three vehicles onwards
For more detailed guidance on reducing what you pay, see our full article on how to reduce fleet insurance premiums.
Common Mistakes Sole Traders Make with Fleet Insurance
These issues come up repeatedly, and each one either leads to an avoidable overpayment or, more seriously, a claim that gets disputed or declined.
Underestimating annual mileage. Quoting a lower mileage to reduce the premium is a false economy. If you exceed your declared annual mileage and make a claim, your insurer can reduce its payout or void the policy entirely. Estimate generously, and update your insurer mid-term if your usage increases significantly.
Not updating the fleet schedule. If you add a vehicle and forget to notify your insurer before you start using it, that vehicle is uninsured. Mid-term additions are straightforward on a fleet policy, but they require a phone call or message to the broker — they don’t happen automatically.
Treating subcontractors the same as employees. Whether a subcontractor is covered under your fleet policy depends on the specific policy wording. Many sole traders assume that anyone driving their vehicles is automatically covered. This is not always the case — check explicitly before putting keys in someone else’s hand.
Leaving tools uninsured. A £4,000 claim for stolen tools will not be covered by your fleet policy unless you have specifically added tools cover. The claim will be declined, and because you disclosed the theft to your insurer, it will still affect your claims history at renewal. This is one of the most common and costly oversights for tradespeople.
Forgetting to shop around at renewal. Fleet insurers are as guilty as any other sector of relying on inertia at renewal. The price you’re offered in year two is rarely the best price available in the market. Use a specialist broker or comparison service every renewal cycle, it typically takes less than 30 minutes, and the potential savings on a multi-vehicle policy can be significant.
Self-Employed Fleet Insurance
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Fleet Insurance for Sole Traders: Specific Trade Scenarios
Different trades have different risk profiles in the eyes of insurers. Understanding how your specific trade is likely to be assessed helps you set realistic expectations and ask the right questions when comparing quotes.
Plumbers and heating engineers. Generally, a favourable risk category. Vehicles are primarily used for local or regional travel to job sites, mileage is predictable, and claims frequency across the sector is moderate. Storing expensive boiler parts or copper pipe in vehicles overnight on the street remains the primary risk factor.
Electricians. Similar risk profile to plumbers. A car-and-van combination is very common in this trade, a car for daily personal and site visits, a larger van for equipment. Fleet cover that combines both under one policy is straightforward to arrange and often represents the best value.
Builders and general contractors. Larger vans, heavier loads, and potentially more miles than other trades. If your work involves long-distance travel to sites or motorway driving, declare this; it affects the underwriting. Site risk (parking at exposed construction sites overnight) also factors into pricing.
Couriers and same-day delivery. The highest-risk trade for fleet insurance purposes. High mileage, time pressure, and a sector-wide claims frequency that insurers know well. Telematics is particularly valuable here; it’s the most effective single lever for reducing premiums in this category, and some specialist courier insurers will only quote if tracking is fitted.
Landscapers and groundskeepers. Pickup trucks, flatbeds, and vehicles towing trailers sit in their own risk bracket. Insurers assess towing as a higher risk, and if you routinely tow a trailer with machinery, this needs to be declared. Confirm whether your fleet policy extends cover to the trailer itself or only the towing vehicle.
