Commercial and fleet motor policies
What the exam tests
Commercial motor: goods vehicles, fleet policies, motor trade and business use. The exam tests whether you can match the policy to the vehicle's actual use and rate a fleet.
Core rules
- A fleet policy covers a number of vehicles under one policy, often with a fleet list and any-driver or named-driver terms. Premium reflects fleet experience, vehicle types, claims frequency and vehicle years.
- Commercial vehicle cover distinguishes own goods from haulage for hire and reward. Carriage of goods for reward usually needs a specific extension; social, domestic and pleasure use does not cover delivery work.
- Motor trade policies may cover road risks (driving customers' vehicles), internal risks (vehicles in the yard) and combined risks. Employers' liability is a separate class.
- Mid-term adjustments add or delete vehicles; temporary substitutions and hired-in vehicles need checking. Fleet rates often use a large-fleet discount and claims experience.
Worked example
A florist uses a van for deliveries and occasionally carries goods for another shop for a fee. The policy is rated for own goods. The paid deliveries are hire and reward; the insurer may decline a claim or charge additional premium. If the van is added to a fleet, the fleet schedule must show it, and the driver must meet the any-driver age and licence conditions.
Traps
"Any driver" is not unlimited: age, licence type and use restrictions apply. A private car policy with business use may cover commuting and meetings but not carrying goods for reward. Fleet policies do not automatically cover hired-in plant or trailers. Do not overlook driver declarations and MID updates.