Insuring Fleet Trucks: Which Carrier?

Fleet insurance is a type of commercial auto insurance policy that covers two or more business vehicles under a single policy. It saves business owners time and money by eliminating the need for individual vehicle policies. Federal and state laws require all fleet vehicles to hold liability coverage, but additional coverage can be added for further protection. The cost of fleet insurance depends on factors such as the number of vehicles, their age and condition, and their intended use. Businesses can save money on fleet insurance by shopping around, identifying their risk profile, installing cameras in vehicles, and maintaining high safety standards.

What is fleet insurance?

Fleet insurance is a type of commercial auto insurance policy that covers all of a company's vehicles under a single policy. It is designed for companies that rely on a fleet of vehicles to conduct their business, such as trucks, taxis, or construction vehicles. Instead of insuring each vehicle individually, fleet insurance provides a single insurance policy for all the vehicles, with one premium paid by the company. This type of insurance is crucial as it covers the company financially in the event of accidents, reducing the risk of costly outcomes.

Fleet insurance is typically offered to businesses that own a minimum of two to five vehicles used for commercial purposes. It covers a wide range of vehicles, including large trucks, machinery such as forklifts, everyday cars, vans, and even taxis. The policy covers vehicles used for shipping, transport, delivery, and other operations.

There are several benefits to fleet insurance. Firstly, it simplifies insurance by covering all vehicles under one policy, reducing the administrative burden. Secondly, it can be more affordable, as insurers often offer better deals for larger fleets. Thirdly, it provides flexibility, allowing businesses to choose which vehicles and drivers are covered. Finally, it is inclusive, covering all drivers regardless of age, background, or other factors that may make individual insurance difficult or expensive.

Fleet insurance covers three main areas:

• Physical damage: covering damage to a vehicle not caused by another driver, such as hail, theft, or vandalism.
• Collision damage: covering damage to a vehicle caused by a collision with another driver.
• Motorist coverage: protecting against expenses incurred in an accident with an uninsured driver.

Additionally, fleet insurance can include comprehensive coverage, third-party fire and theft coverage, and third-party-only coverage, similar to standard car insurance.

The cost of fleet insurance depends on various factors, including the number of vehicles, their type, age, condition, and value. However, it is generally more cost-effective than insuring each vehicle separately.

How does commercial fleet insurance work?

Commercial fleet insurance is a type of insurance policy that covers multiple business vehicles or fleets at once. It is designed to protect businesses from financial losses in the event of accidents, theft, vandalism, or lawsuits involving their commercial vehicles. This type of insurance is crucial for companies that own or operate a fleet of vehicles, as it provides essential coverage for various risks associated with operating these vehicles.

Commercial fleet insurance works by providing a single policy that covers all the vehicles in a company's fleet. This simplifies the insurance process for businesses, eliminating the need for separate policies for each vehicle. The number of vehicles that constitute a "fleet" may vary depending on the insurance company, with some requiring a minimum of five vehicles, while others may offer fleet insurance for as few as two cars.

The insurance coverage provided by commercial fleet insurance extends beyond the vehicles themselves. It also includes liability coverage for bodily injuries and property damage caused by the insured vehicles. This means that if one of the insured vehicles is involved in an accident, the insurance will cover the medical expenses and legal costs associated with the incident. Additionally, commercial fleet insurance can provide protection against uninsured or underinsured motorists, ensuring that the business is not burdened with out-of-pocket expenses in such situations.

Another advantage of commercial fleet insurance is its flexibility. Businesses can customise the coverage based on their specific needs. They can select the vehicles to be covered, determine the extent of coverage required, and define driver access and usage policies accordingly. This customisation ensures that businesses pay for the coverage they need without incurring unnecessary costs.

Furthermore, commercial fleet insurance is not limited to a specific type of vehicle. It can cover a diverse range of vehicles, including cars, vans, SUVs, trucks, and even hazardous goods vehicles. The cost of commercial fleet insurance depends on several factors, including the number and type of vehicles, the driving records of the employees, the location and usage of the vehicles, and the level of coverage required.

Overall, commercial fleet insurance is a valuable investment for businesses that rely on vehicles for their operations. It provides comprehensive protection, simplifies insurance management, and offers cost savings compared to insuring each vehicle separately. By having commercial fleet insurance, businesses can have peace of mind knowing that their vehicles, employees, and assets are protected in the event of unforeseen incidents.

What does fleet insurance cover?

Fleet insurance is designed for businesses with multiple vehicles, allowing them to insure all their vehicles under a single policy. This type of insurance typically covers a range of vehicles, including cars, vans, minibuses, trucks, taxis, and heavy goods vehicles (HGVs). The number of vehicles required for fleet insurance has reduced over the years, and now a minimum of two vehicles is needed to qualify.

Fleet insurance offers three levels of cover: comprehensive, third-party, fire and theft, and third-party only. Comprehensive cover provides protection for damage to the insured vehicle and third-party vehicles or property resulting from an accident, regardless of fault. Third-party, fire and theft cover insures third-party vehicles and property, as well as covering the insured vehicle for damage caused by fire or theft. The most basic level is third-party only, which does not cover the insured vehicle but protects against claims made by third parties for damages.

In addition to these standard levels of cover, fleet insurance can be customised with add-ons such as employer liability cover, courtesy car extension, protected no-claims bonus, and goods in transit cover. The policy can also be tailored to cover any driver or specific named drivers for each vehicle.

Fleet insurance is advantageous for businesses as it simplifies the management of insurance for multiple vehicles, providing the convenience of a single renewal date and policy to manage. It can also result in cost savings compared to insuring each vehicle individually.

Some specific examples of what fleet insurance can cover include:

• Damage to the insured vehicle and third-party vehicles or property in an accident
• Theft of the insured vehicle
• Damage to other cars if the insured vehicle is at fault in an accident
• Goods in transit
• Personal belongings, such as a mobile phone
• Trailers owned by others that are exchanged or hauled
• Breakdown assistance for the insured vehicle and attached trailer

How much does fleet insurance cost?

Fleet insurance is a type of commercial insurance that covers multiple vehicles and drivers under one policy. It is a crucial way to mitigate the high risks associated with operating a fleet of vehicles. The cost of fleet insurance depends on several factors, and there are ways to reduce these costs.

The average cost of fleet insurance is $1,000 per year for small fleet vehicles and $1,500 per year for large fleet vehicles. However, this can vary widely depending on the insurance provider and the location of the business. The cost is calculated based on several factors, including the number of vehicles, the type of vehicle, the value of the vehicles, the driving records of the drivers, the location and usage of the vehicles, and the level and type of coverage required.

For example, trucks will cost more to insure than vans, and fleets used for construction will have higher premiums than those used for delivery. Additionally, the more vehicles in the fleet, the higher the overall cost will be, although fleet insurance is still cheaper than insuring each vehicle individually.

One way to reduce fleet insurance costs is to work with a fleet management company (FMC) that offers comprehensive fleet management solutions. An FMC can help negotiate better rates with insurance providers and implement safety programs and driver training to lower risk. They can also help monitor and maintain vehicles, track and optimise fuel consumption and mileage, and manage claims and repairs.

Another way to save on fleet insurance is to choose a policy with a higher deductible and an array of exclusions. This option may be preferable to not having any coverage at all, as the company would be responsible for covering all damages and medical expenses resulting from an accident.

What are the advantages of fleet insurance?

Fleet insurance is a type of insurance that covers four or more vehicles under one policy. It is typically used by companies that operate a fleet of vehicles for business purposes, but it can also be beneficial to individuals who drive multiple vehicles. Here are some advantages of fleet insurance:

Simplified Administration

With fleet insurance, you only have one policy to manage for all your vehicles. This eliminates the hassle and stress of handling multiple insurance policies for different vehicles. You will only need to deal with one insurance company, making it easier to keep track of coverage, renewals, and payments.

Cost Savings

Fleet insurance can offer significant cost savings compared to insuring each vehicle individually. Insurance companies often provide quantity-based discounts when you insure multiple vehicles together. The larger your fleet, the greater the potential savings. This makes fleet insurance a cost-effective option, especially for companies with five or more vehicles.

Flexibility

Fleet insurance offers flexibility in terms of the vehicles covered, the types of vehicles included, and the drivers insured. You can choose which vehicles to include in the policy and decide whether to insure all drivers on all vehicles or assign specific drivers to particular vehicles. This flexibility is advantageous for businesses with dynamic fleets and staffing arrangements.

Wide-Ranging Coverage

Fleet insurance can provide coverage for a wide range of vehicles, including cars, vans, trucks, and HGVs. It also covers different types of vehicles within the same policy, such as mixed-use or commercial vehicles. Additionally, if a driver cannot obtain insurance individually, they may still be covered under the fleet insurance policy, as the individual risk is balanced across the entire fleet.

Streamlined Claims Process

When a claim needs to be made, fleet insurance simplifies the process. Dealing with a single insurance company for all your vehicles streamlines the claims process, making it more efficient and less stressful. This is in contrast to managing multiple policies with different insurers, which can be complex and time-consuming.

Frequently asked questions