Fleet Vehicle Insurance

Do you operate company owned vehicles? You may need Fleet Vehicle Insurance. This type of policy covers your entire fleet of vehicles (all vehicles outlined in the policy) under one policy, rather than insuring each one separately. A fleet vehicle insurance policy can be more cost effective as well.

At a minimum, fleet vehicle insurance coverage provides enough collision liability to meet your state’s requirements. You can also add options such as roadside assistance, increased liability limits, comprehensive coverage, and rental reimbursement, to list a few. A fleet vehicle policy often provides provisions that allow employees to drive any vehicle in the fleet and be covered in the event of an accident.

Vehicles included in the fleet do not have to be used for the same purpose. Nor do they have to be the same type of vehicle. For example, you can cover cars, vans, trucks and other vehicles. Some may be used for sales, while others provide a service to a client. How many cars constitutes a fleet depends on the insurance provider. Some companies will cover as few as two vehicles, but it tends to be more cost effective with at least three.

Factors Affecting Your Premium

As you can imagine, there are many factors that will impact your premium. Here a few key points to keep in mind.

Age and Value of the Vehicles-A used vehicle may be less expensive to cover due to the reduced repair costs of a newer model. When purchasing a company vehicle, make wise choices. Think more in terms of reliability, and not “flashy” statement cars.
Intended Use-Typically a service-oriented vehicle (ex: plumber) usually has a lower premium than a vehicle that carries passengers (ex: taxi).
Type of Vehicle-Passenger cars are usually less expensive to insure than vans or SUVs. There are also variations in rates for the three classes of trucks.
Policy Options-Generally, the more comprehensive the policy, the higher the premium will be. However, this may save you in the long run in the event of an accident.
Radius of Operations-Driving locally with a 50-mile radius will have a lower premium than someone listed as driving a 500-mile radius. Make sure this information is correct in your policy!
Safety and Security of the Fleet-Showing your insurance provider that your vehicles are safe and secure may impact your premium. Do they have alarm systems? Are they locked up in a garage at night or left out on the street? Typically, the safer the fleet, the lower the premium.
Claims and Driving Records-It is highly recommended that you check the driving record for all drivers prior to employment. Additionally, performing regular audits of motor vehicle records of current employees will help identify any driving issues. Claims and tickets issued to drivers may impact your premium.

How Can You Impact Your Policy?

Have a regularly schedule vehicle review with your Advisor-Often times clients buy trailers, vehicles, sell vehicles, etc. and forget to notify their risk advisor/insurance broker in a timely manner. This is also a great time to review your deductibles on certain vehicles or towing/rental coverage on certain vehicles to ensure the best protection of your operation.
Confirm Rental Expense limits for heavy vehicles – if you only get $50 per day for a rental vehicle, but the heavy truck needed to operate your business costs $200 per day, you may want to increase the coverage. This is especially true for heavy equipment but can apply to vehicle fleets in many industries.
Create a Service Schedule-Track and manage all preventative maintenance and repairs for all fleet vehicles. This will help ensure the safety of your vehicles and therefore may help lower your premium.
Provide Adequate Safety and Training-This should not just be a one-time event upon hiring an employee. Recurring safety training and monitoring driving records should be routine company procedures and thoroughly documented.
Offer Safe Driving Incentives-This may help keep claims down which may help keep premiums down.
Get more than one quote-This is the easiest part because we do that for you! Because we are an independent insurance broker, our Advisors have access to many insurance providers. We seek out the best options, providing you with all the necessary information so you can make the best-informed decision possible!

We are Here to Help! Our Advisors have been able to reduce premiums for clients by examining their policy and ensuring they truly have the correct coverage. By confirming you have the correct deductibles, we can help avoid surprises in the event of a claim. We can assist you with creating policies and procedures that regularly monitor your vehicle maintenance and employee driving records.

Remember, we are more than insurance agents. We are a team of Advisors working to provide the best coverage for you and your business. We go the extra mile because we care about the people, families, and companies we serve.

Thanks to Stewart Hudspeth for contributing to this article.

< Older Post

Newer Post >