Commercial auto insurance provides financial protection to companies for vehicles the business owns. You can purchase coverage for a single vehicle or a group of them. However, with every policy, it is important to provide comprehensive information about the covered cars. Here is more insight about fleet coverage.
What Are Fleet Vehicles?
A fleet is simply a group of vehicles that a business uses. It could represent just a couple of vehicles or a group of 10 or 20. According to a report from the U.S. Department of Commerce, there were over 11 million fleet vehicles in the U.S. in 2014. The largest user of such fleets was the U.S. government. What’s important here is getting the right insurance coverage for them.
If your business owns multiple vehicles, you may need to purchase commercial fleet insurance. It is more or less the same type of coverage as commercial auto insurance, but covers numerous vehicles used in the daily operations of a company. This type of insurance may cover:
• Liability insurance for all the vehicles and drivers
• Collision coverage to repair vehicles damaged in wrecks
• Comprehensive coverage that can pay for vehicles damaged in non-accident hazards, such as damage caused by storms
• Uninsured motorist coverage, which can compensate you if another driver does not have enough liability coverage for your own losses.
Generally, it is more affordable to purchase fleet coverage than to insure each vehicle on its own. It can protect the vehicles listed. It also covers any employee of your business operating your vehicle as long as they do so legally. However, you usually must list all employees who will drive on the policy.
What Factors Play a Role in the Cost?
The cost of fleet insurance depends on many factors, just like it does for a single car. Some areas that can influence price include:
• The type of policy selected (the more coverage obtained, the higher the costs)
• The type of vehicle (more expensive and more high-risk vehicles have higher costs)
• The ways you use the vehicle
• The number of drivers who will use the vehicles
In all cases, your commercial auto insurance provider will discuss the options available to you. They will discuss the number of vehicles you own. They will also discuss any concerns about the type of operation and the use of the vehicle. Your agent can provide you with an accurate quote. It is always important to choose a policy that represents your specific operation and vehicles to keep costs in line.