What Is Fleet Insurance?

Most drivers are familiar with how regular auto insurance works because they have already had to purchase it to drive legally in their state. The laws around driving automobiles for commercial reasons are often different, however, so research is necessary in order to make sure you have the right kind of plan for your situation. Auto insurance for commercial vehicles reflects different laws in a person’s state, as well as different values for the vehicles in total.

With this type of car insurance policy, there is generally no single “owner” of the vehicle. All of the vehicles listed on a fleet auto insurance plan must be listed as owned by a company. This company could be a sole proprietorship, corporation, or another type of company. Keep in mind that there are additional add-ons for automobile insurance that people can purchase, just like additional options are available for traditional car insurance plans. Each of these plans will also have differences from the add-ons for standard car insurance plans, however.

What Is Fleet Insurance?

Many companies in the commercial realm utilize vehicles to make deliveries or provide services. Some of these are construction vehicles, some of them transport people, and others transport goods. A “fleet” of vehicles can be multiple vehicles, but it can also be a single car that a company uses to make occasional deliveries to local clients. A “fleet” can also be hundreds of vehicles for a major company that provides construction services in multiple states.

No matter the number of vehicles a company leases or owns, commercial fleet auto insurance is a requirement and helps adequately protect both the vehicles and their drivers.

What Does Fleet Insurance Cover?

Fleet insurance coverage provides multiple protections, including protections if an automobile accident happens. Accidents can be very costly, and car crashes happen when they are not expected. In order to make sure that you are fully protected from any situation that occurs, all of your company drivers need to be listed on your policy. Many companies choose to list all of their employees on a policy if they are smaller companies. This way, if someone needs delivery and none of your regular drivers are available, another person in the company can make the delivery and be insured at the same time.

If a person from your company is driving a vehicle, they must be on your insurance plan. Your insurance company calculates risk based on who is driving the vehicles, and if they do not have the information about everyone who is or could be driving, the pricing will not be accurate. If an employee is driving and they are not listed on your insurance policy, your insurance provider may think that you are defrauding them, which can cause additional problems on top of the accident itself.

Also, remember that specific vehicles do require special licenses to operate, and the insurance company will need to know that each one of your drivers is properly licensed before they drive any of the vehicles in your fleet. Update your fleet insurance plan each time you have a driver change at your company. If you fail to do so, your claims could be denied, or other even worse circumstances can happen.

How To Save

There are plenty of ways to save money on fleet insurance plans. The biggest way to save is to shop around and compare prices from multiple companies. Insurance US can help you find the best prices for fleet insurance online. Get free quotes on the best fleet insurance policies here.

You should also note that hiring drivers who have a safe and clean driving record will help you save money in the long run. Just a single driver who has a poor driving history can raise your car insurance premiums by 10% or more. This amount can be significant when it is applied to your entire fleet of vehicles.

Another way to save money is by purchasing your fleet insurance from the same company that holds your other business insurance policies. This is called bundling policies and can provide significant savings. In some cases, your personal insurance policies, as well as those of your family, can also be rolled into a plan to help you save overall.

Discounts are also available for people in some situations. Companies that have GPS devices installed in their vehicles may see discounts on their fleet vehicle insurance coverage. This decreases the risk of a stolen vehicle not being found, which is beneficial for your insurance company.