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Commercial fleet insurance is specialized commercial auto insurance coverage businesses with many vehicles can obtain for their cars, vans, SUVs, trucks, dump trucks, semi-trailers, etc. It is often referred to as fleet insurance, business rental car insurance, car rental business insurance, etc.
Commercial Fleet insurance is meant to cover your business, drivers, and your entire fleet. Fleet vehicle insurance coverage includes what a typical commercial auto policy would, often at a more affordable price.
But what is a fleet? It depends on how each individual insurance provider classifies it but a commercial fleet can be as little as 2–5 vehicles or as many as hundreds of vehicles owned by companies and used for business purposes.
Who needs commercial fleet insurance?
The nice thing about fleet auto insurance is that any type of car—from construction vehicles to mini-vans—can be included under the same policy. The insurance company usually doesn't require the vehicles to be used for the same purpose.
These are the two types of insurance most insurance companies will offer for fleet protection.
Most if not all states require you to obtain general liability coverage. This policy covers you personally when you are liable for physical damage to someone’s car, property, or cause them physical injury. These coverages are typically included within your general liability policy:
Commercial auto insurance—also referred to as business auto insurance—includes coverage for your vehicles like personal injury protection, collision coverage, comprehensive coverage, and can include additional endorsements. So what's covered?
Personal Injury Protection
Personal Injury Protection (PIP) will pay for medical expenses and lost wages (up to 80% of your earnings) for you and any passengers injured in an accident. If you have PIP, your insurance company pays whether or not you are found at fault for the accident.
PIP is more comprehensive coverage than simply adding med pay coverage to your policy. For example, it can cover psychiatric care, occupational therapy, childcare expenses, and more. PIP insurance will also pay for funeral expenses if someone dies in the accident.
Comprehensive Coverage
Comprehensive covers repairing or replacing your vehicle(s) if they are damaged due to theft, vandalism, or weather-related incidents. It's often referred to as "anything other than collision" coverage. If you store cars in an open lot or an area that's considered high-crime, this is a coverage you don't want to skimp on.
Collision Coverage
Collision coverage provides coverage for the physical damage that is done to the policyholder’s vehicle in accidents (if they’re at fault for the accident). If another party is responsible for the accident, their liability insurance pays for your repairs.
Uninsured and underinsured motorist coverage
Check with your insurance company to make sure you can add uninsured and underinsured motorist coverage. Not only is it required by most states but it will help cover your costs if the other party involved is found liable but they do not have auto insurance. It can also help provide coverage if the other party doesn't have sufficient coverage to fix the damage, pay for the bodily injury, or you're the object of a hit-and-run.
Other fleet insurance policies you may want to consider for your business include:
Inland Marine Insurance offers protection for any tools of your trade not permanently affixed to your vehicles, such as carpentry tools, extermination equipment, etc. Why do you need it? Most commercial vehicle insurance policies exclude anything not permanently attached to vehicles in your fleet.
If you own a rental car business, commercial property insurance will protect your property in case of damage or destruction. If a storm comes through and damages your garage, signage, and destroys valuable papers, you want to make sure you have coverage with your insurance company.
The cost of fleet insurance depends on numerous different factors, including:
Trucks are divided into three different classes:
Because there are so many variables that impact pricing, we can't really give you a ballpark figure of what it may cost for car insurance for your vehicles. Be sure to speak to your agent—or one of ours—about the potential cost of fleet insurance.
If you want to save money on your fleet insurance policy, there are a few solutions you can try to lower your costs from the very beginning:
Speak with a commercial agent to find out what else your company can do to lower your cost and reduce risk!
Insurance coverage for fleet insurance doesn't have to be complicated. To get an affordable quote for your fleet, complete the form at the top of our page and one of our agents will reach out. Or, give us a call at 1-877-907-5267. We will gladly help you find the right coverage for your business.
Reviewed By: Andrea McKinney, MBA, Licensed Agent
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