What Is Fleet Insurance
Many companies rely on a fleet of vehicles to run their businesses, from trucks to taxis to construction vehicles. Fleet vehicles are essential to numerous industries and businesses. However, if you use fleet vehicles, ensuring your entire fleet is insured is crucial. Insurance protects your business and helps you stay afloat if something happens. Fortunately, you don’t need separate insurance for every vehicle; fleet insurance covers them all.
Fleet insurance is an auto insurance policy that covers all of a company’s vehicles, eliminating the need to insure each one individually. Imagine the cost of insuring every vehicle at your company, regardless of the industry— it adds up quickly. Fleet insurance offers a simple alternative by providing one policy for all cars, all covered under a single premium that your company pays. This policy is designed for companies that rely on fleets to get business done.
How Does It Work?
Insurance is crucial for all vehicles, especially work-related ones. If a vehicle gets into an accident, the owner must cover various expenses: repairs for all vehicles involved, lost merchandise and time, medical bills, and more. An expensive accident could be unaffordable out-of-pocket, highlighting the importance of insurance. Insurance provides coverage for the company, enabling it to stay in business if an accident occurs and accidents do happen.
Fleet insurance allows you to cover all your vehicles under one policy, protecting your business from financial liability and trouble if—and when—something happens. When you purchase a fleet insurance policy, it covers all your vehicles. The vehicles don’t need to be identical, and you don’t insure the individual drivers either—everything is included in one policy. This type of insurance covers any vehicles used to keep your business running. Some of these might include:
- Large trucks used for shipping and transportation
- Machinery, including forklifts, used in construction
- Everyday cars and vans used for transportation, delivery, or other operations
- Vans Cargo
Your fleet insurance will cover your vehicles, regardless of how they are used for your company.
Who Has Access to Fleet Insurance?
Fleet insurance benefits many companies and is available to more businesses than many people realize. For many policies, fleet insurance applies to any company with a fleet of two or more vehicles. The basic requirements for most fleet insurance policies are simple: the vehicles must be used for business purposes, and there must be a fleet of at least two vehicles. On average, fleet insurance covers 2–500 vehicles, although some plans may require more than two vehicles.
A company in any industry can obtain fleet insurance, but certain industries may need a more specialized type. For instance, if you have a taxi fleet, you’ll need taxi-specific fleet insurance rather than a generic policy.
The size of your fleet determines the type of fleet insurance you need. Small to medium-sized fleets require less coverage, so you can opt for a small fleet insurance policy, often called a “mini fleet.” These policies are perfect if you have only a few vehicles essential for your business operations. They are also generally ideal for small businesses overall.
For companies with a large fleet, there are specialized large fleet insurance policies that offer ample coverage. Businesses with hundreds or thousands of vehicles will find these policies beneficial for obtaining the right amount of coverage. If unsure about the appropriate type of fleet insurance for your business, consult your insurance provider to determine the optimal coverage.
What Does Fleet Insurance Cover?
Since fleet insurance covers all your vehicles rather than typical auto insurance, it typically covers three main areas, depending on your chosen policy:
Physical Damage
It refers to any damage sustained by a vehicle that was not caused by another driver. It includes incidents such as hail damage, theft, and vandalism, all covered under physical damage coverage to maintain your vehicles in top condition.
Collision Damage
It refers to the damage your vehicle sustains if it's hit by another driver. Collision coverage ensures you're prepared to handle expenses in case of accidents involving your fleet vehicles. The larger your fleet, the more crucial it is to have comprehensive collision protection in place.
Motorist Coverage
It protects against accidents involving uninsured drivers, ensuring you avoid out-of-pocket expenses for any uninsured incidents involving your vehicles.
Additionally, it's important to consider the types of coverage available, similar to typical car insurance, where you can select from the same three types.
Comprehensive Coverage
includes damages to your vehicles, other drivers' vehicles, and injuries to anyone involved, regardless of fault. Essentially, comprehensive coverage
Third Party Fire and Theft Coverage
They protects your vehicles from fire and theft at any time, while also covering damages to third party vehicles.
Third Party only Coverage
It pays for damages to other people’s vehicles and property, as well as injuries to any party involved in an accident.
Like car insurance, you’ll choose coverage options for your policy based on your company’s needs. For instance, motorist coverage may not be necessary for a forklift used exclusively on site, where the risk of collision with an uninsured motorist is extremely low. However, a delivery van parked in an uncovered lot could benefit from comprehensive coverage to protect against various risks.
What Are the Benefits of Fleet Insurance?
Most industries and companies that use vehicles of any kind find fleet insurance highly beneficial. Here are some key benefits of fleet insurance:
Simplicity and Efficiency
While you could insure vehicles individually, managing multiple policies even with a small-sized fleet can be cumbersome. Using one policy for all vehicles streamlines and simplifies the process.
Affordability
Managing multiple policies can lead to increased costs. Fleet insurance empowers you with bargaining power to negotiate lower premiums and achieve savings on insurance. Insurers perceive greater value in your fleet, often leading to opportunities for better deals.
Flexibility
Fleet insurance allows you to control how your vehicles and drivers are covered. You can select which vehicles to cover and in what manner, and determine which drivers have access to specific vehicles.
Inclusivity
Some drivers, due to age, background, or other factors, may struggle to obtain individual insurance, or they may face high premiums if they can. Fleet insurance provides a solution by inclusively covering all drivers, regardless of their circumstances, ensuring comprehensive protection for everyone in your fleet.
Conclusion
Overall, fleet insurance offers a great way to protect your fleet and ensure coverage for all your vehicles and drivers. It’s straightforward, effective, inclusive, and cost-effective. Interested in finding the right fleet insurance for your company? Contact us, and we’ll assist you in getting started!