Fleet Insurance Definition
Fleet insurance is the coverage of multiple company vehicles under one policy. Companies can choose to also insure drivers to specific vehicles or cover them to drive any company fleet vehicle.
What is Fleet Insurance
In general, fleet insurance is available to companies that either lease or own two or more vehicles. The type of insurance coverage can depend on the type of industry in which the vehicles are being used. The area in which a fleet operates can also affect the type of coverage that is necessary, as well as the price of the policies.
What is a Fleet Insurance Policy?
A fleet insurance policy defines the coverage that each vehicle and driver is allotted within a company. Depending on the size of the fleet and the coverage either chosen or required, the policy costs can vary greatly. For example, a light-duty fleet with less than 50 vehicles will be much less costly than a similarly sized over-the-road Class 8 fleet.
What Does Fleet Insurance Cover?
To comply with federal and state laws, policies must include liability insurance, which covers bodily injury, property damage, or a combination of both when a company driver is at fault for an accident. This type of policy covers any injuries or deaths that resulted from the accident, vehicle and property damage, and often includes attorney fees associated with any lawsuits. States differ on insurance coverage requirements pertaining to minimum quantities, so it is always best to research the laws in your state or any state in which your fleet travels.
How Many Vehicles Do You Need for Fleet Insurance?
Insurance companies consider any fleet of two or more vehicles eligible for fleet insurance. There is no limit to how many vehicles you can have covered.
How Much Does Fleet Insurance Cost?
Fleet insurance costs, like consumer insurance, varies according to the type of vehicle, the coverage selected or required, the area in which your fleet resides or does business, and the number of vehicles and drivers being insured.
Once fleet insurance is purchased, there are other factors that can contribute to changes in your policy’s premiums, making driver and vehicle safety paramount for any fleet. The combination of at-fault accidents, aggressive plaintiff attorneys, and a recent increase in “nuclear verdicts” has made many insurance companies revisit the types and associated coverage costs for fleets.
Benefits of Fleet Insurance
Aside from the obvious benefits that vehicle insurance offers anyone, whether commercial or consumer, fleet insurance also offers a convenience factor for most companies. By combining all vehicles and drivers onto policy, fleets can easily keep track renewal dates and policy changes. Drivers and vehicles can also be easily added or removed throughout the year. There is also a lower premium cost associated with fleet insurance, since companies commonly give price breaks for more than one vehicle, especially for fleets with 50 or more vehicles. Most companies also offer an “any driver option” so that fleets do not have to constantly add new employees to the policy.
Disadvantages of Fleet Insurance
There are also some disadvantages associated with fleet insurance, including the fact that your premium is calculated based on the risk factor of all drivers in your fleet. Even one high-risk driver in a pool of many can increase premiums, as well as having a number of young drivers.
For smaller fleets, the lack of vehicles may reduce the amount of savings they see and result in a more expensive policy, especially when attempting to cover all your drivers. Fleet insurance does not usually offer a “no claims” discount for fleets, as the total number of claims across the entire fleet are taken into account when renewing policies.
Does LifeSaver Mobile Work With Fleet Insurance Providers?
Fleet insurance companies are looking for ways to lower crashes and costs associated with at-fault collisions. Cell phone compliance solutions like LifeSaver Mobile are key ways to help prevent that with phone distraction as the leading cause of crashes. We are also partnered with lots of fleet insurance providers in the industry.
