Does a Fleet Wrap Affect Your Business Vehicle Insurance?

WrapUK, the fleet wrap specialists, explains how insurance providers categorise different types of commercial vehicle wrapping

Wrapping your fleet can be an excellent way to market your brand and present a professional, polished appearance, designing an impactful vinyl wrap that prospective customers will remember.

One of the most-asked questions relates to insurance, whether adding a vinyl wrap to a fleet of cars or lorries impacts cover, and what happens if you don't inform an insurer of a wrap and subsequently need to make a claim against your policy.

WrapUK, the fleet wrap specialists, explains how insurance providers categorise different types of commercial vehicle wrapping, what constitutes a vehicle modification, and when you may need to contact your insurer to advise of changes to your commercial fleet.

Are Vinyl Fleet Wraps a Modification for Insurance Purposes?

Every insurer is different, and while some will only consider fleet wrapping a modification if the wrap covers more than a certain percentage of each vehicle’s bodywork, others will treat any wrap – even if a partial wrap or a decal on one panel – a reportable modification.

Our advice is always to contact your insurer for clarification and request their response in writing where possible so you have this on record. Although unlikely, you might at some time need to provide evidence of having reported your fleet wrap, so it’s handy to have this available.

Modifications are reportable because they change the vehicle from its original factory specification. Therefore, an insurer needs to know if you add a wrap since this ensures the policy is valid and your fleet is fully covered.

Failing to notify your insurance provider may mean you breach the conditions of your policy and render it void. A wrap does not make any long-term difference to the way a vehicle performs or drives, but complying with the terms of your insurance product is essential.

Does a Fleet Wrap Make Commercial Vehicle Insurance More Expensive?

Adding a vinyl wrap to your fleet doesn’t necessarily make your insurance premiums higher, but again, this all depends on the insurer. Providers may take different approaches to a fleet wrap, either considering the high-visibility nature of a wrap a greater risk or treating it as a positive since a unique commercial vehicle may be less likely to be stolen and easier to recover.

Vehicle insurers often regard a vinyl wrap as similar to having the vehicle resprayed. Of course, these two options are very different in practice, but the policy that applies to resprayed commercial vehicles is usually applicable to vinyl wrapping.

Therefore, if the insurer adds an additional premium for commercial vehicles that have been resprayed, they are more likely to do the same for a wrapped lorry or van.

However, a vinyl wrap may also be categorised as a temporary modification since the wrap can be removed, changed or replaced at any time. In this case, the insurer may not change your insurance premiums at all since the value of the vehicle remains the same.

Will Business Fleet Insurance Cover the Cost of Replacing a Vinyl Wrap?

A vinyl wrap is one of the most cost-effective ways to upgrade the external appearance of a commercial fleet, but it remains an investment in advertising. Many businesses want to check whether their insurance provider will cover the cost of replacing or repairing a wrap if it becomes damaged.

There are a few different options:

• Some insurance providers will cover a vinyl wrap in the same way they would cover the cost of respraying bodywork if it became scratched or damaged.
• Others offer vehicle graphics cover as an addition to your main fleet insurance, with an extra fee attached.
• Businesses can also take out separate vehicle graphics coverage for their fleet, although they still need to notify the primary insurer of the modification.

Most insurance providers will cover vinyl graphics as a standard policy inclusion in the same way they would expect to cover other add-ons, such as new wheels or an upgraded entertainment system, but it remains important to check.

What Information Will a Fleet Insurer Need About Vinyl Wraps?

The insurance provider will need to document the modification and ensure this has been noted within your policy. They will normally ask for a copy of the receipt or invoice showing the work completed, the cost of the vinyl wrap for each vehicle, and a photo of each work van from all angles.

You might also be asked to provide a list of the materials used or the specific brand of vinyl wrap applied and a video walking around the fleet vehicles. Some insurers will be happy with photographic or video information showing one lorry within your fleet, whereas others will ask for the same documentation for every vehicle covered by your insurance policy.

They need these details to assess the cost of replacing or repairing the wrap in an accident and to determine whether the risk exposure changes the premium they are prepared to offer. You may also need to rely on this information when making a claim to ensure the insurance covers a like-for-like replacement if your vinyl becomes damaged.

As with most elements of a vehicle, the insurer will not normally cover the costs of repairing or replacing a wrap that has become worn in line with general use but may cover these expenses if the wrap is damaged in an accident.

Do I Need to Notify the DVLA When I Have a New Vinyl Wrap Applied?

Just as you need to let your insurer know if you change the appearance of your commercial fleet vehicles, you must advise the DVLA. The rules were updated in 2014 and now state that any modifications that change the way a van looks are reportable.

The DVLA stores details on a register that is used to collect road tax and by the police and other authorities, such as when tracing a stolen vehicle or issuing a speeding fine. The default information is provided by the manufacturer, so any deviation should be reported, including changes to the colour of the bodywork.

Companies or registered owners need to submit the notification via section seven on the V5C certificate and will receive an updated document within one month.

Read more about WrapUK - What To Look For In A Commercial Vehicle Wrapping Company 

About WrapUK

WrapUK are premium vehicle wrapping specialists based in Sussex, UK. Car wraps, van wraps, commercial vehicle wraps and even boat wraps are a speciality. Our clients are based throughout the South of England, from Brighton to Southampton. For fleet wraps the team will work on site, for speed and to minimise disruption.

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Source Company: https://www.wrapuk.com/