Finding affordable fleet insurance is more challenging, and more crucial than ever, in 2025. Rising premiums, supply chain issues, and changing vehicle technology have shifted the landscape for businesses managing company cars and vans. If you’re wondering how much fleet insurance costs, whether it’s cheaper than individual policies, and how to keep prices under control, here’s what you need to know this year.
How Much Does Fleet Insurance Cost and Is It Cheaper Than Individual Policies?
Fleet insurance allows businesses to cover multiple vehicles under a single policy, often delivering substantial savings over arranging separate policies for each car or van. In 2025, the average cost for a small business fleet (three to five vehicles) ranges from around £1,500 to £2,250 annually, but the figure can climb much higher for larger operations or those with young drivers and specialist vehicles. Broadly, fleet insurance is usually cheaper on a per-vehicle basis than insuring each vehicle individually, especially once you scale up. Administrative efficiencies and group-risk calculations help reduce premiums compared to going it alone.
How is Fleet Insurance Calculated? What Factors Affect Pricing?
Insurers assess fleet premiums by evaluating the collective risk of your vehicles and drivers, looking at factors including:
- Fleet size and composition: The make, age, and value of vehicles (new EVs, older cars, specialist vans, etc.)
- Driver profiles: Age, experience, and driving or claims histories for all regular drivers
- Business use: Typical mileage, operating locations, and industry sector
- Claims history: Your business’s previous claims and accident record
- Type of cover selected: Third-party only, third-party fire and theft, or comprehensive
- Security arrangements: Use of secure parking, trackers, dashcams, and immobilisers
- Vehicle technology: Use of telematics and the proportion of the fleet made up of electric vehicles
Rising vehicle repair bills, ongoing supply chain disruptions for parts, and a general uplift in claims costs have all pushed premiums up in 2025, even for low-risk fleets.
How Can Businesses Reduce Fleet Insurance Costs?
Rising prices mean it’s more important than ever to take action. Here’s what actually moves the needle:
Leverage telematics
Usage-based insurance (UBI) policies reward safe, responsible driving, as tracked by in-vehicle devices or apps, with tangible discounts for cleaner records.
Regular driver training
Ongoing education around defensive driving and road safety helps avoid costly incidents, which in turn keeps premiums lower at renewal.
Choose the right vehicles
Opt for models with strong safety features and good repair records. If you’re adopting electric vehicles, look for insurers offering tailored EV fleet rates.
Review cover and policy limits
Make sure you’re not over-insured but still protect against key risks. Regular reviews ensure you’re paying for exactly the cover you need, nothing more.
Increase security
Investing in trackers, secure parking, and dashcams can drive down risk, and demonstrate to insurers that you’re serious about fleet safety.
Compare multiple providers
Don’t just accept the first renewal offer. The fleet insurance market is competitive, and savings can often be found by shopping around, especially with new EV-focused products.
Industry Insights for 2025
The Impact of Rising Costs
Both inflation and ongoing supply issues have driven up the average cost of repairs, meaning insurers are paying more for common claims. As a result, all businesses are seeing higher quotes, particularly for fleets with newer, high-tech vehicles or where parts can be difficult to source.
The Growing Role of Telematics
Insurers are increasingly relying on telematics, monitoring actual driving behaviour via installed devices. Fleets that can demonstrate safe speeds, smooth braking, and low out-of-hours driving often qualify for sizable policy discounts. Over time, good telematics reports not only lower claims costs but can also unlock premium reductions.
Electric Vehicles: A Double-Edged Sword
Adopting electric vehicles is a clear trend for sustainability and fuel savings, but insurance for EVs can still be pricier than for petrol or diesel models. Specialist EV fleet policies are starting to address the higher cost of repairs for EVs, batteries, and complex electronics. Businesses switching to an all-electric fleet should look for insurers prepared to reward investment in green technology, and always compare quotes carefully.
Takeaway
Fleet insurance is evolving fast, and with market pressures it’s vital to take an active role in managing costs. From embracing telematics to updating your risk management routines, the right approach protects your bottom line and keeps your vehicles (and business) moving.
Ready to take control? Compare quotes on fleet insurance today with QuoteSearcher’s panel of specialist providers and see what you could save in 2025.
