FLEETS can expect cheaper premiums as a result of the forthcoming merger between the Royal and Sun Alliance insurance companies. The Royal is Britain's biggest fleet car insurer and currently covers 250,000 fleet vehicles and a further 250,000 Motability vehicles. Motability is the largest leased car scheme in Europe and now accounts for 5% of all new car sales in the UK.

The Royal's head of group corporate affairs, Roy Randal said: 'We expect the merger to give improved customer service and drive down costs. There are some legal details to go through from here on and the merger will not be completed until early August. Until then, we are open for business in the normal way and are anxious to continue dealing with our fleet customers.' The new combined company will be called the Royal Sun Alliance.