If your business relies on a fleet of vehicle to get the job done, fleet insurance can get your business and drivers better coverage at a lower price. Your industry, driving history and number of vehicles will affect the prices you pay.
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What kind of fleets need commercial car insurance?
If your business uses more than two to five vehicles, it needs commercial car insurance. This covers industries like:
- Emergency vehicles
- Tour busses
- For-hire vehicles
- Delivery vehicles
- Rental cars
- Municipal vehicles
- Tow trucks
- Semi trucks
- Contractor vehicles
What kind of insurance do I need for a fleet?
Fleet insurance lets you bundle multiple vehicles on the same policy while meeting your industry insurance requirements.
- Liability insurance. Required in most states, bodily injury and property damage liability insurance cover at-fault damages to others.
- Collision damage. Pays for repairs and replacements after one of your covered vehicles is damaged in an accident.
- Comprehensive coverage. Covers damage from events other than collisions like fire, theft and weather.
- Medical payments coverage. Pays for medical costs of drivers and passengers who are injured in a company vehicle.
- Uninsured or underinsured motorist coverage. Provides coverage if another driver doesn’t have any or enough insurance to pay for your damages.
What additional coverage should I consider?
Consider additional features tailored for your industry, vehicles and fleet size.
- Personal items. Covers items stolen from a vehicle like equipment and tools.
- No-deductible glass repair. Pays for windshield or other glass damage.
- Gap insurance. Pays for the outstanding loan on your vehicle if you still owe money after its been totaled.
- Roadside assistance. Provides towing and roadside assistance if your vehicles break down.
- Rental car coverage. Get a replacement vehicle or compensation for a rental while your vehicle is being replaced or repaired.
- Non-owned automobile liability coverage. Covers you or your employees’ personal vehicles used for business purposes.
- Keys and locks. Pays to replace keys and locks if keys are stolen.
- Branding. Covers the cost of repairing or replacing branding, decals or artwork on company vehicles.
- Downtime. Compensates for lost income while a company vehicle is being repaired or replaced.
How much is car insurance for fleets?
For fleets with vehicles like sedans or SUVs, you can expect to pay around $1,000 per year per vehicle. Trucking fleets and larger vehicles generally cost $1,500 or more per vehicle.
Discounts are often available by having a good driving history, reducing risk, insuring multiple vehicles and more.
How do I compare insurance?
No matter what type of vehicles your business uses, you should compare your options to find the right commercial car insurance for your fleet.
- Owner of vehicles. Do you hire drivers that use their own vehicles? Consider non-owner or hired car insurance to cover your fleet and drivers while they’re on the clock.
- Industry-specific coverage. Consider providers that specialize in insurance for your industry. They might be able to offer insurance for specific vehicles, higher coverage limits or just better protection from industry hazards.
- Intended use. Industry-specific commercial car insurance policies allow you to tailor coverage to fit your business.
- Risk. High-risk industries will be more expensive to insure, but many providers will offer discounts for risk-management strategies.
- Consider an agent or broker. Agents and brokers have access to a network of providers and insurance companies and can match you with one that suits your needs.
How do I get fleet insurance?
Buying commercial car insurance will usually take longer than buying personal car insurance since you are insuring multiple vehicles. A broker might help you find the best coverage for your business, but if you decide to apply directly, most providers require you to:
- Visit the provider’s website.
- Select Get a quote or call the phone number provided.
- Submit all necessary information about the business, its vehicles and drivers.
- Adjust coverage limits and other options.
- Get your quote and confirm details.
- Enter payment information.
- Confirm and purchase coverage.
What to watch out for with car insurance for fleets
Just like any other car insurance policy, be prepared for possible coverage exclusions and other exceptions that could lead to a denied claim.
- Specific coverage exclusions. Check with your provider to find out what isn’t included in coverage to avoid denied claims or gaps in coverage.
- Coverage for non-employees and hired vehicles. Chances are your commercial car insurance policy only covers company-owned and leased vehicles. Consider livery or for-hire insurance to get coverage for driver-owned vehicles.
- Equipment. If you need coverage for tools, machinery or equipment in vehicles, you’ll probably have to purchase an additional coverage option.
- Coverage limits. Make sure your policy meets your state and industry minimums.
- Rideshare. Rideshare businesses need to purchase specific coverage for rideshare vehicles.
- License status. You may be denied coverage if your drivers have expired or inadequate licensing for the type of vehicle they drive.
- Exceeding weight or capacity. Some policies enforce weight and passenger limits, and could deny claims if you go over.
- Negligence or misuse. Most policies won’t cover costs resulting from negligence, misuse, or intentional damage.
- Wear and tear. Damage due to road problems and depreciation probably won’t be covered by your policy.
What affects the cost of premiums?
While your age is a primary factor in determining your rates, these factors also affect your rate:
- Type of vehicles. Whether you’re insuring sedans for taxis and trailers for shipping will affect how much you’ll pay. It’s best to find a provider that specializes in your industry.
- Number of vehicles and drivers. More vehicles raise your premium, though you may qualify for a multi-vehicle discount.
- Travel distance. Coverage is more expensive the further your drivers travel.
- Coverage types. Select only the coverage you need.
- Coverage limits. Adjust your coverage limits to suit the needs of your business.
- Storage. If your vehicles are stored in a safe, covered area, you may get better rates.
- Location. Population, weather, crime and road conditions can affect your rates.
- Deductible. The higher a deductible, the lower the rates. But make sure you can afford the deductible if you’re in an accident.
- Credit history. In some states a lower credit score raises your premiums.
- Driving history. If any drivers have a poor driving history, your rates can be more expensive.
Fleet insurance can be tricky to find the best deal with the best coverage. Consider talking to a broker or industry specialist to customize the right policy for your business.
Get quotes from multiple providers and compare commercial car insurance policies to find coverage tailored to your fleet.
Frequently asked questions
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