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Protect your company’s vehicles and drivers by investing in a fleet car insurance policy.
Fleet cars are vehicles leased or owned by a business rather than an individual. These groups of vehicles are intended for work purposes, like transporting staff or delivering goods and supplies. As a result, companies will need to purchase commercial fleet insurance to protect these vehicles as well as their drivers.
Fleet car insurance protects business owners against the costs of injuries, accidents and property damage that result from use of their business vehicles. To help you find fleet car insurance, our team has evaluated the best car insurance providers for your business auto policy.
What is Fleet Car Insurance?
Any company that owns or leases several vehicles is eligible for fleet car insurance, regardless of field or industry. It’s a convenient way to protect all your drivers and vehicles under one policy, and it’s more affordable than assigning separate policies to each car. Customization is another benefit of fleet car insurance. You can tweak your insurance plan to match the nature and needs of your business.
How Much is Fleet Car Insurance?
The cost of insuring your entire fleet depends on several variables, including the size, number and average age of the vehicles. The type and purpose of your fleet of commercial vehicles plays a significant role in the cost of your policy as well. An auto insurance policy for a delivery fleet, for example, would be more expensive because the goods have to be insured in addition to the vehicles.
Insurance costs vary so significantly because fleet auto insurance is a customized product. The best strategy to find out what you’d pay for this type of business insurance is to request free quotes from at least three insurance providers to compare your coverage options.
How to Lower the Cost of Your Fleet Car Insurance
Commercial auto insurance providers use a number of variables specific to your company to determine the cost of your policy. These include factors like your company driving record, those who will be driving your fleet of vehicles and more. While some of these factors are out of your control, there are certain steps you can take to lower your premiums. There are also discounts your company can take advantage of for following safety practices.
Increase the Minimum Age of Your Drivers
The younger and less experienced your drivers are, the more expensive your auto insurance coverage is likely to be. For the most affordable coverage, ensure that none of your drivers are under 25. Some companies even have age minimums of up to 30 years old for commercial drivers.
Let Your Drivers Train with a Professional
As with personal auto insurance, safe drivers pay the lowest costs for coverage. When your employees undergo advanced training or take driver safety courses, this will show up on their records. This indicates to insurers that your company is serious about safety, which could lead to lower premiums.
Install Telematics Devices in Your Fleet Cars
Equipping your fleet of cars with telematics devices is one of the best ways to lower your premium. Commercial vehicle insurance companies value this transparency and will likely reward you with a discount.
What is Covered by Fleet Car Insurance?
Businesses with a commercial fleet are required by law to secure auto liability insurance. The minimum coverage companies are required to purchase varies by state, so you’ll need to research the rules in your area and verify with an insurance agent that you meet the requirements.
For commercial auto insurance policies, there are three different types of liability coverage that protect your company’s vehicles and drivers:
- Bodily injury liability: Your liability insurance covers expenses for bodily injury or death that your fleet vehicle may inflict on another person. This amount also covers any legal defense your company may need.
- Property damage liability: If a vehicle from your fleet damages another party’s property, your liability insurance will cover property damage costs. This coverage also covers legal fees if the third party involved decides to sue your company.
- Combined single limit: While most policies set limits per person and per incident for liability coverage, combined single limit coverage sets one limit that can be applied to any combination of injury or damage costs in a claim.
Should You Expand Your Fleet Car Insurance Coverage?
Basic liability insurance is enough to comply with most state and federal laws. However, you have the option to expand your fleet insurance policy. Full-coverage insurance offers protection in a much wider range of situations. Examine the needs of your company and see if you can benefit from any of the following types of insurance:
Uninsured Motorist Coverage
It might surprise you to know that many of the motorists you share the road with are uninsured or underinsured. If one of your fleet cars is involved in an accident with an uninsured motorist, this type of coverage will protect your company from paying for medical expenses or damages.
Collision Coverage
The more vehicles you have in your fleet, the more prepared you have to be for accidents. Collision insurance pays for expensive repairs when one of your cars gets into an accident.
Comprehensive Coverage
Road accidents aren’t the only danger to your fleet. Natural calamities, vandalism and theft can also cause physical damage to your vehicles. Adding comprehensive coverage to your insurance can protect you from all these scenarios.
Our Recommendations for Auto Insurance
Choosing the best car insurance provider is one of the most challenging parts of the process. We suggest considering GEICO, USAA and State Farm as you start your search. Compare quotes from multiple insurers to find the right coverage and cost for your company’s needs.
State Farm: Best Customer Experience
In our team’s review of the best insurance companies, State Farm received an overall rating of 4.6 out of 5.0 and the Best Customer Experience award. It’s a reputable insurer that offers quality local service and affordable rates to many drivers for both personal auto insurance and commercial policies. There are many opportunities to save, with discounts given to those who have zero accidents, have anti-theft systems installed in their vehicles and more.
USAA: Best for Military
USAA scored 4.5 overall in our review and received the Best for Military award. It offers a wide range of discounts based on the length of your membership and annual mileage. Discounts are also given as a reward for good behavior such as defensive driving and using a new vehicle. USAA offers its SafePilotTM telematics program that provides feedback to help drivers improve their skills on the road and offers savings.
GEICO: Most Discount Options
GEICO received a rating of 4.4 and the Most Discount Options designation. It’s known for having some of the lowest rates in the industry for many types of drivers. It provides several ways to lower your premium, including defensive driving and anti-theft system discounts. You can choose from a wide selection of coverage types and services, such as mechanical breakdown insurance and rideshare coverage.
Frequently Asked Questions (FAQs)
How does a fleet policy work?
A fleet policy allows a company to protect all of its drivers and vehicles under a single policy. It doesn’t matter if you have mixed vehicle types within your fleet. The usual requirement is that all vehicles should be under one ownership.
Can anyone drive a vehicle on fleet insurance?
Most fleet policies follow the “any authorized driver” rule. As long as you have the permission of the company or the director, you can drive any of the fleet vehicles.
Is fleet insurance cheaper than regular insurance?
Pricing depends on many factors. You can typically get a better deal with fleet insurance than you would if you purchased individual policies for each vehicle. Generally, the more vehicles you have in your fleet, the better your premium.
How many vehicles are considered a fleet?
Any entity that operates at least 15 vehicles or purchases at least 10 in a year is considered a fleet.
