Everything You Need to Know About Fleet Insurance

Strong Tie Insurance September 7, 2020 Commercial Truck Insurance

A fleet of commercial vehicles is necessary for a lot of companies in order to carry out their daily business operations. Common examples of industries that maintain a fleet of vehicles include delivery services, construction companies, and more. For this type of business, a commercial fleet insurance policy is essential and more affordable than having each vehicle insured individually.

In the U.S., there are more than 5.4 million fleet cars in service, with most of them as rental cars. The rest of them are government vehicles and utility or commercial vehicles.

As for fleet trucks, SUVs, and vans, there are more than 11.7 million of them operating in the country. Most of them are utility or commercial vehicles and the rest are rental and government vehicles.

What is a Commercial Fleet Insurance For?

This insurance policy is for covering liability risks for all the vehicles operated by the company. These vehicles include cars, vans, buses, and SUVs.

Trucks are also included, from construction trucks to tractor-trailers. Under a fleet insurance plan, the vehicles to be insured do not have to be used for the same purpose. For example, commercial cars and construction vehicles can be covered by the same policy.

The number of vehicles that make up a fleet varies, depending on the definitions of the insurance provider. It can be as small as just two vehicles while most will require at least five. The insurance is more worth it when a business will have at least three vehicles to be covered.

What Does Fleet Insurance Cover?

This will cover for liabilities for all the company’s vehicles under a single policy. This allows company employees to drive the insured vehicles in the fleet and get coverage in case of accidents. Basic coverage will be for collision and liability in line with the insurance requirements of the state.

From here, add-ons can be included such as roadside assistance, coverage for uninsured motorists, and increased liability limits, while a more comprehensive coverage can be worked in for instances other than collision.

These include vandalism, theft, and other damages to the vehicle.

How Much Does Fleet Insurance Cost?

How much you have to shell out will depend on several factors. Of course, the more vehicles you want to include in the policy, the more expensive it will be.

Insurance providers also consider the following:

  • Age and value of the vehicles – Generally, used vehicles are cheaper to cover because they cost less to repair than new or custom vehicles.
  • Intended use of the vehicle – Plumbers, locksmiths, and other people who do service-oriented jobs usually pay the lowest insurance.

Mid-range level rates include vehicles used for retail purposes, such as grocery delivery and pizza delivery. The highest rates are applied to vehicles used for delivering goods to other businesses and those used to transport people.

  • Types of vehicles – Passenger cars are the cheapest to insure, followed by vans and SUVs.

As for trucks, the costs will depend on the class they fall into — light, medium, or heavy. Light trucks weigh less than 10,000 pounds, which include pick-up trucks, flatbed trucks, and full-sized vans.

Medium trucks, which include mid-size refrigerated trucks and box trucks, weigh between 10,000 to 20,000 pounds. The heavy trucks are those that go over 20,000 pounds — construction vehicles and tractor-trailers.

Of course, the more comprehensive the policy, the higher you have to pay for it. The good thing about this is that these more expensive policies will cover and protect you from a major loss in case of accidents.

How Can I Save on the Costs of Fleet Insurance?

It’s recommended that you compare at least three quotes from different insurance companies in order to get an idea of the fair prices for coverage. Another way you can save money from your fleet insurance policy is to aim for discounts.

For instance, you can qualify for discounted rates if the drivers of your fleet have flawless driving records. Discounts are also available if you have safety and anti-theft equipment, and ensure effective standards.

The type of vehicle you insure will also affect the costs. You can pay lesser premiums if you use electric or hybrid vehicles, as they are considered safer by insurance companies. Driver age is a factor as well. Employing drivers under 25 years old will cost you more. You can workaround this by limiting their mileage or only allowing them to drive during the day.

Raising your deductible amount is another way to save on costs. This arrangement allows you to pay lesser premiums but when the time comes to file a claim, you have to pay a higher deductible amount.

You can also combine policies — you get another commercial insurance aside from your fleet insurance through the same insurance provider.

How Do I Maintain a Safe Fleet of Vehicles?

Having the best drivers with unblemished records does not ensure the occurrence of accidents. This means that taking simple precautions to lessen the probability of accidents related to commercial fleet conditions should be a standard for companies. Here are ways to make sure that your vehicles remain as safe as possible:

  • Make sure to comply with state and federal regulations when it comes to fleet safety.
  • Train your drivers excellently and have them undergo periodic reviews of safety protocols and they should also know how to do quick routine vehicle inspections before they drive them.
  • Employ only qualified drivers and strictly review their motor vehicle records at least once a year.
  • Boost driver morale by giving them awards and incentives for maintaining excellent records. This is effective in motivating drivers to do their best in avoiding accidents, which leads to avoiding compensation claims.

Choosing the Right Insurance for Your Fleet of Vehicles

Strong Tie Insurance can help you get the best and cheapest California fleet auto insurance. You need not just impeccable customer service, but an insurance provider that understands your fleet business.

We have unique relationships with contractors, body shops, car dealers, rental companies, hotels, and more to make sure that our customers always have the support they need.

Call us today for a free insurance consultation.