Arval has launched a new insurance product that allows fleets to insure vehicles through the leasing company even if the vehicle is not funded by them.
The initiative is based around an insurance product for vehicles, something that others have previously looked at without launching.
However, Arval thinks it has the solution: it has extended the offering to include vehicles that it does not fund, enabling it to insure the entire fleet irrespective of the funder.
The main benefit for fleets is the ability to choose a monthly rental that includes everything apart from fuel. No longer will they need to negotiate insurance premiums on an annual basis.
Benoît Dilly points to further benefits: “It’s a better service for the customer: they aren’t stuck in the middle between the insurance company and the contract hire company. It’s also more efficient regarding downtime management – and it reduces the cost of the accident repair.”
The product is available for fleets of all sizes but is being pushed hardest to SME fleets, which offer the biggest opportunity, according to Elliott Woodhead, sales director for SME and partnerships.
“Larger fleets tend to have all-encompassing insurance deals with buildings and travel included,” he says.
Currently, 25% of leasing quotes to SMEs include Arval Total Care; take-up rate is 10% of orders. Woodhead is confident this could get to “at least” 20% of orders thanks to the addition of the full fleet offering, which was only launched in January.
A further boost will come this month as Arval’s network of 70 brokers can now automatically
quote on the product. “We would like to see 20% penetration this year, although I’m not sure what it means in terms of giving us vehicles that are not on our fleet,” Woodhead says.