Eight things that can invalidate your fleet insurance

Business owners who rely on fleet insurance to cover multiple vehicles at once are being warned of ways they might be unknowingly invalidating their policy.

Fleet insurance experts at Tiger.co.uk have named eight common mistakes that could invalidate fleet insurance policies, potentially leaving businesses without coverage when they need it most.

Many businesses use fleet insurance to combine their company vehicles under one policy which can simplify management and lead to savings, compared to insuring each vehicle separately.

However, there are certain actions that businesses or their employees may be unintentionally doing that can lead to the claims being denied in case of an accident or theft.

Fleet insurance policies, like any other policies, come with specific terms and conditions that must be met, or else businesses risk paying for the cost of repairs or replacement, out of their own pocket.

It’s important to make sure the vehicles are only used for approved purposes, regularly maintained and kept at registered addresses overnight.

When new employees are hired, it’s crucial to add their details to the policy or opt for an ‘any driver’ cover which allows more flexibility.

Ian Wilson, Managing Director and fleet insurance expert at Tiger.co.uk said: “Fleet insurance can be a convenient way to manage multiple company vehicles under one policy, saving business owners time and money compared to insuring all of the vehicles individually.

“However, it’s crucial for businesses and their employees to be aware of the potential pitfalls that could void their coverage, as simple mistakes could potentially lead to serious financial consequences.

“If drivers are using the vehicles for unapproved purposes such as running personal errands, insurers may reject claims in the event of an accident.

“The terms of coverage may also be breached if employees park company vehicles at home overnight. If the vehicle is broken into at an address that is not registered on the policy or has yet to be updated from a recent house move, then the cover may be invalid.

“To protect the fleet, it’s also important to regularly maintain vehicles, ensure all drivers hold valid licences and never make any modifications before authorising them with the insurer.

“There are savings to be had on fleet insurance costs by reviewing some of the price sensitive options, such as the security of the vehicle, the excess on the policy and the age and driving history of the driver. 

“The younger the driver, the higher the premium is likely to be.  For example, van drivers age 17-24 pay between £1200 and £3200 for van insurance, depending on where they live in the UK, significantly more than the national average cost for van insurance at £575.

“It’s sensible for businesses to shop around, review all the variables and see where savings could be made, our price comparison site compares over 25 UK fleet insurance providers, helping busy business owners save time and money.”

The team at Tiger.co.uk have named eight mistakes that could void your fleet insurance:

1. Using vehicles for unapproved purposes

Fleet insurance policies outline the approved purposes the vehicles can be used for. If employees use the company vehicles for anything outside of the usage terms – such as running personal errands or carrying goods that are not specified in the policy, they could be voiding the cover.  It’s important for business owners to ensure all employees understand what they can use company vehicles for, to avoid breaching the policy.

2. Failing to update the policy

Businesses need to ensure their policy is kept up to date when they remove or add new drivers or vehicles, or are expanding into new territories, or else risk invalidating their cover. Businesses can also opt for the ‘any driver’ cover option which allows more flexibility as you can insure multiple qualifying drivers for multiple vehicles.

3. Parking vehicles at home overnight

Many fleet insurance policies require vehicles to be parked at a registered business address overnight as premiums can vary based on location and parking conditions. If your employee parks the vehicle at home overnight, then you may not be able to claim if it gets broken into because the vehicle was parked at an address not registered on the policy.

4. Modifications

Any modifications to fleet vehicles, whether for performance, aesthetics or functionality need to be declared to the insurance provider. This is because not only can they increase the value of the vehicle but they can also make the vehicle more attractive to thieves.

5. Neglecting maintenance

It’s important to regularly maintain fleet vehicles so they’re roadworthy and meet the insurer’s standards. If an accident occurs and it can be proved it was due to poor maintenance, your claim could be rejected.

6. Unqualified drivers

Businesses need to regularly check that all their drivers possess valid licences and meet any additional insurer criteria, such as age restrictions. This includes checking for expired or suspended licences and ensuring drivers hold the correct licence for the type of vehicle being driven.

7. Operating vehicles outside authorised regions

Most fleet insurance policies specify the regions where coverage is valid. If you operate your vehicle outside these areas, your insurance may be void. For example, if you transport goods to Europe, you must inform your insurer to ensure you have appropriate coverage.  This may be of particular interest to areas of the UK that now border Europe, such as Northern Ireland. 

Negligent behaviour

If your driver leaves the doors unlocked or keys in the vehicle then you’re unlikely to be covered for theft.  Also, valuables left out on display may not be protected.  It’s important to review the extras and add on anything you might need such as tool theft cover or insurance for goods-in-transit.

Note a fleet starts at two vehicles, if the business only has one vehicle then standard business van insurance should cover it.  Fleet vehicles can be anything from cars, vans and motorbikes to HGV’s, forklift trucks and couriers.  Tiger.co.uk helps drivers compare and find savings on all sorts of motoring products such as van, taxi, courier and fleet insurance.

This article is intended as generic information only and is not intended to apply to anybody’s specific circumstances, demands or needs. The views expressed are not intended to provide any financial service or to give any recommendation or advice. Products and services are only mentioned for illustrative rather than promotional purposes.

References:

 UK Average Van Insurance Costs – Per Age/Per Region

Q4-2024
REGION	17-24	25-34	35-44	45-64	65+
North East England	£3,233.92	£1,073.27	£818.23	£552.29	£329.47
East of England	£2,996.86	£990.52	£848.24	£490.40	£323.46
East Midlands	£2,641.51	£647.48	£676.53	£503.69	£292.02
West Midlands	£2,387.56	£958.90	£848.22	£615.78	£348.01
London	£2,020.34	£1,574.15	£1,298.14	£894.23	£844.33
South East England	£1,995.97	£999.76	£771.63	£518.23	£351.16
North West England	£1,860.66	£1,412.89	£790.10	£537.98	£469.40
Yorkshire	£1,679.11	£1,068.48	£1,030.11	£456.70	£430.32
South West England	£1,535.74	£737.50	£704.13	£363.69	£345.06
Wales	£1,388.22	£959.43	£665.91	£333.86	£360.77
Scotland	£1,357.87	£627.33	£619.72	£476.74	£327.64
NI	£1,215.62	£861.80	£627.29	£506.58	£427.45

UK AVERAGE VAN PREMIUM PRICE – PER REGION
REGION	Average
London	£1,139.81
North East England	£663.51
West Midlands	£650.25
North West England	£641.00
South East England	£610.65
NI	£573.27
East of England	£562.80
Yorkshire	£535.29
Scotland	£530.60
Wales	£486.34
East Midlands	£480.64
South West England	£424.83

Total UK average:

£575.05

The data uses a random sample of over 100,000 UK van insurance policies from September – December 2023 & 2024, supplied by Tiger.co.uk.