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fleet insurance
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Many business owners rely on fleets of commercial vehicles to perform essential tasks and assist in daily operations. To help ensure the safety of these important assets and reduce overall risk, business leaders depend on fleet insurance.
Fleet insurance is generally considered the best auto insurance plan for covering two or more business vehicles under a single policy. Obtaining fleet insurance saves time, money, and hassle for business owners by eliminating the need to purchase plans for individual vehicles in their fleets.
In this article, we'll explain everything you need to know about fleet insurance, including what it typically covers and its average costs. We'll also mention the top advantages of fleet insurance and give tips for maintaining a fleet of safe vehicles.
In this article:
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how does commercial fleet insurance work
Forty percent of all motor vehicle accidents are work-related, according to the 2018 Driver Safety Risk Report from workforce solutions company Motus. That's why business owners ought to strongly consider purchasing fleet insurance. They can obtain fleet insurance to cover accidents and other liability risks for all vehicles used in the scope of their operations. Examples of these vehicles include:
Vehicles covered under a fleet insurance policy do not need to be of the same type or have a fixed number of drivers operating them.
Let's say you're a restaurant operator. Your business provides delivery services requiring three cars, a catering service that uses a large van, and an off-premises food truck you bring to local events. The three cars, the van, and the food truck are your business fleet. All five vehicles would be covered under the same fleet insurance policy, and the coverage would not be impacted by having multiple delivery drivers, assuming they are all properly licensed.
The size of your fleet will vary depending on your business needs and the size of your operation. Insurance carriers typically divide motor fleets into two size-based categories:
Many small business owners wonder whether they have enough commercial vehicles to constitute a fleet, and the answer varies based on the carrier. Most insurance providers will insure as few as two cars for a fleet, while others may require as many as five.
Federal and state regulations for businesses require all fleet vehicles used for commercial purposes to carry liability insurance. The minimum coverage amount varies by state. You'll need to familiarize yourself with your state's requirements to help your business maintain compliance and avoid costly penalties for noncoverage.
Fleet liability coverage applies to any situation where bodily injury, property damage, or a combination of the two occurs. Here are some key definitions:
While basic car insurance coverage for commercial fleets fulfills the minimum legal requirement for businesses, there are several options for further protecting your assets. When choosing the best auto insurance coverage for your business needs, you may want to consider adding specialized options. These could include the following:
The cost of fleet insurance varies by the carrier, the size of the business, and the number of vehicles you own. Other factors that may impact the cost of your fleet insurance policy include:
Trucks are classified into three size categories based on gross vehicle weight rating (GVWR), and each category has a different policy cost associated with it.
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trucks are classified into three size categories
Light-duty trucks, including most pickup trucks, flatbed trucks, and fullsize vans, are the least expensive class to insure. Fleet insurance policies for medium trucks, such as box trucks and ambulances, typically fall in the middle price range. Heavy-duty trucks like 18-wheelers and vehicles used in construction are generally the most expensive to insure.
If you want to insure your commercial fleet, you'll need to provide details about your vehicles to your broker or carrier. Be prepared to answer the following questions:
Give truthful answers to all of the questions above. Also, consider whether you can reduce your car insurance rates by changing how you'll take care of the vehicles.
There are a few ways to save money on your fleet insurance policy, starting with shopping around. It's a smart idea to compare multiple car insurance quotes from carriers to determine which coverage options best suit your business needs and budget. Having a range of quotes will also help ensure you're not overpaying for your policy.
Other ways to save money on your fleet insurance plan include:
Many fleet insurance providers offer discounts for businesses that observe best practices for maintaining the safety of vehicles and their drivers. Discounts your company could qualify for include:
It's crucial to only hire employees with clean driving records that are free of any accidents, moving violations, or license points. Adding just one employee with a poor driving record could raise your premiums significantly.
According to industry experts, employers should generally avoid hiring applicants with the following infractions on their records:
Businesses looking to ensure vehicle and employee safety, reduce their time spent on administrative tasks, and save money should consider fleet insurance. In addition to the peace of mind that comes with knowing your assets are protected, fleet policies provide the following advantages:
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tips for maintaining a fleet of safe vehicles
Making sure your fleet drivers are safe behind the wheel is critical for business leaders. The safety of drivers directly impacts the security of your vehicle assets, other drivers on the road, and your company's bottom line. Consider the following tips to help keep your fleet secure and your employees safe on the road:
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reward employees
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thorough inspection
Which companies offer fleet insurance?
Most of the biggest car insurance companies allow for fleet insurance, with providers like Geico, Progressive, State Farm, and Allstate all offering competitive and quality policy options.
Can individuals or families buy fleet insurance?
Fleet insurance policies are only available for commercial vehicles, so individuals and families cannot purchase policies for themselves.
When would I file a fleet insurance claim?
You should file a claim with your fleet insurance provider immediately following an accident or an injury involving one of your vehicles or drivers. If you do not file the claim immediately, most states allow you up to one year to file a claim after the accident.
What is the minimum number of vehicles in a fleet?
The minimum number of vehicles in a fleet varies by the insurance carrier. Some providers will insure as few as two cars as a fleet, while others may require as many as five.
How do I renew my fleet insurance policy?
Your fleet insurance policy is renewed annually, and your agent will usually contact you in the weeks leading up to your renewal date. That period is the best time to look into savings on your premium.
What factors will impact the cost of my fleet insurance policy?
The cost of fleet insurance varies by carrier, business size, and the number of vehicles in your commercial fleet. Other factors that may impact the cost of your policy include the age, condition, and value of your vehicles, along with their intended use.
How can my business maintain a safe fleet of vehicles?
To maintain a safe fleet of vehicles, you should make sure your drivers abide by all state and federal driving regulations, only hire employees with clean driving records, provide defensive driving education, and stay current with all regularly scheduled vehicle maintenance needs.
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