Fleet insurance is for companies who own 4 or more commercial vehicles. It is an easy way to cover all the vehicles belonging to a business under one policy. It helps with organization and can potentially provide discounts. Fleet insurance can be an excellent option for businesses as you’ll find out below.
What are the benefits of fleet insurance?
The greatest benefit of fleet insurance is that allows insurance companies to group rate like vehicles and potentially allow for discounts. Some fleets will have a particular endorsement that allows like vehicles to be automatically covered. There are restrictions and requirements in order for overage to apply but this is very useful for businesses that have many vehicles that change frequently throughout the year.
Otherwise it is similar to a normal commercial vehicle policy. Depending on the level of coverage you choose you and your vehicles will be protected in event of damage or destruction being caused by a covered event. It will also cover damages associated with liability.
What does fleet insurance cover?
As with any commercial vehicle policy there are different levels of insurance you can get with fleet coverage. The best coverage to have is third party liability collision and comprehensive.
Third party liability is required by law in order to have a vehicle on the road but it only protects the other party for both property damage and bodily image – there is no coverage for yourself nor the vehicle you own.
Collision covers the owned vehicle for damage caused by a collision. This does not cover medical or legal fees. It will also not cover the vehicle in cases of damage caused by anything other than a collision.
Comprehensive on the other hand covers a long list of perils that can cause damage or destroy your vehicle. It will also provide coverage for medical and legal fees. For example if one of your vehicles was vandalized and had the mirrors broken off and a few dents put in it you would be covered. This wouldn’t be covered if you just had third party liability and collision.
There are also a number of other endorsements (or optional coverages) that you can choose. What is available will depend on the insurance company and the type of business. Talk to your broker for more information.
What should I know about fleet insurance?
A couple of things to keep in mind as you look into whether or not a fleet insurance policy makes sense for your company:
- Every employee that will be driving one of the insured vehicles must be listed on the fleet policy. Failure to do so could result in a claim being denied. Also depending on exactly what kind of vehicles you are insuring the drivers may need a special operator’s license.
- Update your broker regarding any relevant changes including the number of vehicles you own and who is driving them. You’ll also want to notify your broker if the nature of your business changes and keep them up to date with your address and contact information.
If you’re not sure about whether or not you need fleet insurance talk to a broker first. They’ll be able to help get you a policy that protects your assets while staying within budget.