New vehicles added? New drivers? Changed how you’re using your fleet?
March is an ideal time for a quick fleet insurance check. Many SMEs only update their motor cover at renewal, leaving potentially significant gaps in the meantime. If you’ve made changes to your fleet and haven’t updated your policy, you could be driving uninsured or facing claim problems.
What Changes Affect Your Coverage?
- Vehicles added or sold – each new vehicle must be added promptly to avoid being uninsured
- New drivers – especially those under 25 or with poor records must be disclosed
- Usage changes – now delivering goods instead of just carrying tools? This affects your rating
- Modifications – signage, fitouts, bull bars all change your vehicle’s value and must be disclosed
Three Quick Checks
1. Agreed vs Market Value
For newer vehicles or those with significant modifications, agreed value is usually worth the extra premium. Market value policies can leave you short at claim time, especially for specialist vehicles.
2. Tools & Equipment Limits
Standard policies typically cover only $2,000-$3,000 for tools in vehicles. If you regularly carry $10,000+ in tools or equipment, you’re massively underinsured. This limit needs to be increased.
3. Comprehensive vs Third Party
Saving money with third party on older vehicles sounds sensible until you consider replacement costs. Even an older ute could cost $20,000+ to replace. Can your cash flow handle that hit?
Take Action This Month
Take 10 minutes this week to create a current vehicle list: registrations, values, regular drivers, and annual kilometres for each vehicle. Check this against your policy schedule. Any discrepancies? Contact your insurance adviser to update your coverage.
Updating your fleet insurance mid-year is far simpler than dealing with a denied claim because your circumstances changed and you didn’t inform your insurer.
Speak with your professional insurance adviser about your fleet cover. They can ensure everything’s properly covered and provide options to meet your budget and needs.
References
Insurance Council of Australia. (2024). Motor vehicle insurance guide for business. https://www.insurancecouncil.com.au/
Disclaimer: This article is for general information purposes only and does not constitute financial, legal or insurance advice. Coverage will depend on the specific terms and conditions of individual policies. Businesses should consult their insurance broker or legal adviser for guidance on their particular circumstances. Information is current as at 3 March 2026 and the situation is evolving rapidly.
This article was published by our AFSL Licensee, Insurance Advisernet Australia P/L, www.insuranceadviser.net