Commercial fleet insurance simply means you have multiple vehicles, but they are all grouped under a single policy. There are many reasons to look into obtaining a fleet policy. Those who own businesses in industries such as taxi services, vehicle rentals, delivery, or construction are all areas that should consider investing in commercial fleet insurance. It can be more cost effective to have this type of policy, which is why many businesses opt for it.
What is commercial fleet insurance?
Fleet typically means many individual pieces comprising one single unit. Therefore, how many vehicles have to be involved for an individual to need commercial fleet insurance? This will be determined by the insurance company, as they all have their own stipulations and rules. You will find that there are insurance companies who will not cover fleet insurance on less than 5 vehicles, while others may only require two vehicles. Typically, fleet insurance begins to pay off when three or more vehicles are involved.
Commercial Fleet Insurance is available for corporations to buy, as it will cover all uses for company vehicles. Fleet insurance can cover vehicles such as cars, buses, vans, SUVs, tractor trailers, and construction vehicles. Although your commercial fleet insurance is covering multiple vehicles, they do not have to be used for the same reasons. You can have company cars, as well as heavy duty hauling trucks.
When fleet insurance is obtained, it will simply provide liability coverage for all the businesses automobiles. There are even some companies that will flex and allow anyone within your business to drive any of the vehicles on the policy.
This type of policy will provide your company with the right amount of collision and liability coverage to suffice all state law enforcements on commercial automobiles. However, that is just the minimum policy, more coverage can be added to protect your assets. Things such as more liability coverage, roadside assistance, uninsured driver coverage, as well as comprehensive coverage can all be added to increase your protection.
Commercial fleet insurance has many benefits including:
- All employees will be covered to operate company vehicles, which gives you flexibility when staffing is low or certain individuals are not at work. All individuals will be covered, no questions asked.
- Every vehicle falls under a single policy, so you will only have to worry about paying and renewing once.
- Fleet insurance can become cheaper than individual policies, as discounts given with each added vehicle.