Fleet Auto Insurance Explained

There are some cases in which case companies, including sole proprietorship's and corporations, owns a fleet of vehicles that they need to have insured. Automobile insurance for fleets of vehicles can differ quite a bit from regular auto insurance. Differences can include state laws for commercial vehicles, and because companies need to follow the law, knowing how to go about getting this type of insurance properly is vital.

Fleet auto insurance is a type of policy where the owner of the vehicles must be listed as a company. The insurance policies have different types of add-on insurance, and for people who have not purchased fleet auto insurance previously, a crash course in the information needed can be a great help.

Fleets are vehicles that your company owns. They can be as few as one car and as many as hundreds. The vehicles can be used to move goods, people, or used as work vehicles or in other ways. For companies to protect their commercial fleet, fleet auto insurance is required. This type of insurance protects both the car and its drivers.

What Is Commercial Fleet Insurance?

Commercial fleet insurance is purchased by companies who own one or more vehicle. The vehicles must be owned by a company, whether it be a sole proprietorship, corporation, or another type of company. Commercial fleet insurance allows companies to insure all of their vehicles and listed drivers.

What Does Fleet Insurance Cover?

Car accidents happen at inconvenient times and are never expected. Because of this, adding anyone in your company who has a likelihood of driving a vehicle, even if it is a slim likelihood, can be a great idea. If one person goes to pick something up from somewhere and is not insured, the insurance company might not pay the claim if there is an accident.

Fleet auto insurance covers the vehicles and the drivers that are listed on your policy. They do not, however, cover personal items of value that are in the vehicles. In addition to covering your cars and your drivers, your fleet auto insurance will cover other vehicles and drivers, as well as the property, that an accident one of your drivers causes damages. There are many different types of policies available, so look to your insurance policy to figure out exactly what is covered.

What your fleet auto insurance will not cover are the materials that are being transported, including tools, products, and other items that are in the vehicle. Additional protection can be purchased to cover the goods and other things inside your cars. Coverage can be bought for theft, damage, or other loss. Your insurance agent can help you determine which types of policies you need to cover your vehicles, drivers, and goods, for your unique situation.

Is Fleet Insurance Expensive?

Many variables go into determining what the cost of fleet insurance is. The number of vehicles has a significant effect, and the age, uses, types and mileage/value of the cars in your fleet will have an impact on what you pay for your premiums. Of course, the policy options that you choose will also affect your rates. Getting the right type of insurance for your particular situation can end up saving you a lot more money in the long run than what you pay on your premiums.

How Can I Save Money on Vehicle Fleet Insurance?

Honestly, the top way to save significant amounts of money on your fleet auto insurance plans is by hiring drivers that have safe and clean driving records. Adding drivers that have a poor driving record, even one of them, can raise your premiums by up to 10% or more. Since you are insuring many vehicles, this type of rate increase can add up to significant amounts of unnecessary money being spent. Some companies choose only to allow people in the company with the best driving records to drive, saving quite a bit of money in the process.

Another top way to save money is by bundling your auto insurance with other types of policies. If you are purchasing life insurance, business insurance, or any other forms of protection, you can get the policies from the same company for significant savings.

Additional discounts might be available for having things like GPS devices installed in your vehicles, this can be a relatively inexpensive way to save money, and can also help you keep track of your company's cars. They can also help trace a vehicle in your fleet if any are stolen.

Outside of these discounts and others, changing and updating your policy can lead to savings. If you decide to part ways with two vehicles, for example, make sure to let your insurance company know straightaway. There is no reason to pay for vehicles that are not owned by the company anymore.

Tips for Maintaining a Safe Fleet of Vehicles

The biggest tip for maintaining a safe fleet of vehicles is to be aware of both state and federal fleet safety regulations and following them. Additionally, you will want to choose qualified drivers and make sure they are well trained in safety procedures. Many companies decide to reward safe drivers with incentives, which has been shown to reduce accidents, workers compensation claims, and injuries. Also, checking up on your drivers to make sure they are using the company vehicles safely is key.

Of course, you will want to keep your vehicles well-maintained and have records of all of the maintenance work that has been done. Taking a few simple measures to help reduce your risk of liability can earn you discounts on your insurance and can help decrease your rates.