What Type of Insurance Does Your Fleet of Vehicles Need?


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Do you own a fleet of vehicles and wonder whether some insurance can cover the fleet as a unit? Fleet insurance effectively protects all your fleet vehicles from a variety of potential hazards your business may encounter on a day-to-day basis. In essence, fleet insurance is coverage that ensures that all your vehicles are covered under one unified plan. Additionally, you can insure all the drivers associated with the fleet or assign named drivers for the fleet.

What Type of Insurance Does Your Fleet of Vehicles Need

Who Is Eligible for Fleet Insurance?

Fleet insurance is insurance coverage for businesses or organizations that own or lease more than two vehicles. Typically, the term ‘fleet’ in insurance refers to a group of vehicles that has between two and 500 vehicles. However, depending on the insurer, the upper limit could be higher. Normally, fleet insurance is available for any industry. However, depending on the specific needs of the business or the type of vehicle usage, the organization may have to get specialized fleet insurance coverage.

An example would be a taxi company. Essentially, the best fleet insurance policy with a taxi company will either be public or private hire taxi fleet insurance. Drivers’ inclusion is normally entered if the company management permits the drivers themselves. Now, this is mainly because the insurance policy gets issued based on ‘Any Authorized Driver’. If the coverage includes young or previously convicted drivers, you may have to pay higher premiums.

How Fleet Insurance Works

Normally, fleet insurance offers coverage for all vehicles leased or owned by a business. When registering the policy, the organization can use its company name, a director, or a partner. Premium payments are normally made regularly – monthly or yearly – depending on the company’s specific needs. Just like with the standard vehicle insurance, the following are the major coverages that fleet insurance comes with:

  • Comprehensive coverage: Comprehensive coverage mainly offers coverage for damage on your vehicle, third party’s vehicle, and any personal injuries that might occur. Normally, the coverage also applies to other passengers and third parties affected. In addition, the policy covers you for fault and non-fault accidents.
  • Theft and third-party fire: This coverage ensures that your vehicle or that of a third party is covered against theft or fire.
  • Third-party only coverage: Normally, this covers damage to other people’s vehicles or property. It also offers coverage for injuries that your passengers or other’s passengers may suffer.

Usually, policies vary from one provider to another and offer different services. Additionally, what another insurance provider may prohibit another one may permit. Therefore, you should ensure that you comprehensively understand your policy. This will help you to know what is covered and what is not covered in the event of an accident or mishap.

What Is the Cost of Fleet Insurance?

The cost of fleet insurance is not a cuts-all figure. Different insurers charge different figures depending on the factors in play. The major factors that an insurance company considers before determining the cost of your insurance include:

  • Business-specific factors: Business-specific factors include the industry and the business procedures that you put in place. For instance, your premiums will be high if your business offers courier services or engages in other riskier industries involving third parties.
  • Vehicle information: The risk of each car is evaluated individually. Normally, the higher the risk associated with the car, the higher the premiums. Some of the factors assessed in this category include the age of the vehicle, annual mileage, the driver history, age of the driver, and the location.

Do I Need Insurance to Ship My Fleet?

Shipping insurance is the responsibility of the shipping company. Typically, companies like Montway Auto Transport in Arizona that offer car shipping services don’t require securing your vehicles with fleet insurance. Companies like these already cover any incidence of damage that occurs during the shipping process.

When relocating your business or shipping a fleet of vehicles to a new business front, make sure to do your research on your shipping provider. A shipping company with high ratings and strong reviews is sure to handle your fleet of vehicles professionally and ensure that your shipment arrives on schedule and undamaged.

What Are the Advantages of Fleet Insurance?

With fleet insurance, you get to enjoy benefits such as:

  • Cheaper insurance option for your fleet
  • Less hassle in regards to paperwork and filing
  • High inclusivity for all your vehicles
  • Flexible policies that allow you to choose the vehicles you want to insure under the fleet insurance policy

By researching what your competitors and other industries in your niche are doing in regards to their own fleet insurance, you can begin vetting your options. Choosing what kind of policies your business requires while staying in compliance with any local laws is critical. With a fleet insurance policy, you get all the benefits of multiple coverages stacked into one policy. By carefully selecting your policy and the drivers your policy will cover, you can effectively avoid any major setbacks to your business.


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