Fleet Vehicle Insurance: A Complete Guide (2024)
Navigate the ins and outs of fleet vehicle insurance: A comprehensive guide to protecting your business vehicles and ensuring peace of mind. Understand the coverage options, requirements, and costs involved in insuring your fleet. Learn how to save money and find the best insurance providers for your specific needs.
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Brandon Frady
Licensed Insurance Agent
Brandon Frady has been a licensed insurance agent and insurance office manager since 2018. He has experience in ventures from retail to finance, working positions from cashier to management, but it wasn’t until Brandon started working in the insurance industry that he truly felt at home in his career. In his day-to-day interactions, he aims to live out his business philosophy in how he treats hi...
Licensed Insurance Agent
UPDATED: Aug 27, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
UPDATED: Aug 27, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
Welcome to our comprehensive guide on fleet vehicle insurance. Whether you own a small business or manage a large fleet, understanding the intricacies of insurance coverage is crucial. In this article, we will delve into the key topics related to fleet vehicle insurance, including the types of coverage available, legal requirements, cost factors, and the best insurance providers in the market.
- Fleet insurance offers a convenient policy to insure every vehicle a company owns under one plan
- Most major insurance providers offer fleet insurance, though Progressive and Nationwide receive the best reviews
- Prices vary, but owns can expect to pay about $1,000 per year per small car and $1,500 for large vehicles
By the end, you’ll have a solid understanding of how to protect your fleet and make informed decisions. To ensure you get the best rates and coverage, enter your zip code now and compare quotes from top insurance providers in your area.
What is fleet insurance?
While every company has different qualifications, you’re most likely considered a fleet if you have at least two vehicles that you use for your business. These vehicles include:
- Cars, pickups, SUVs, and vans used to deliver food, flowers, and packages
- Tractor-trailers and semis
- Box trucks
- Cargo vans
- Forklifts and other construction machinery
In 2019, the estimated cost of work-related accidents for American businesses was $39 billion. Traffic accidents are also the most common way workers die on the job.
Read more: Car Insurance Laws: A Comprehensive Guide
Fleet insurance keeps your drivers, your vehicles, and your business protected from the dangers of the road. Federal and state car insurance laws require every commercial fleet to have a minimum level of liability, but that only pays for damage to other vehicles and property.
If you want additional coverage, you’ll need a more comprehensive plan.
What does fleet insurance cover?
As a specialized type of commercial insurance, fleet insurance covers the same things as personal car insurance. There are multiple types of coverage you can buy:
- Liability. This pays for damages to other cars and property when one of your vehicles is at fault for an accident.
- Comprehensive. Comprehensive covers damage outside of accidents. What is included in comprehensive car insurance? If you purchase this, your fleet will be safe from weather damage, vandalism, theft, animal contact, and other damages.
- Collision. As the counterpart to liability, collision car insurance pays for necessary repairs to your vehicles after an accident.
- Underinsured/uninsured motorist. If someone hits my car, whose insurance do I call? Even though almost every state requires insurance, not every driver has adequate coverage. This policy makes up the difference if an underinsured motorist hits one of your vehicles.
- Medical payments. If a driver or passenger is injured in your company vehicle, this coverage helps pay their medical bills.
You might be able to purchase add-ons that will make your insurance even better, depending on the company that you buy from.
How many vehicles make a fleet?
While it depends on the insurance provider, most companies consider two to five vehicles a fleet. Usually, fleet insurance is split into two groups:
- Small fleet insurance. Some insurance companies will give you access to special small fleet insurance if you only need a few vehicles to fulfill your business needs.
- Large fleet insurance. Insurance companies have policies that suit large fleets from a dozen to thousands of vehicles.
If you have more than five vehicles, you should qualify as a fleet for most companies that offer commercial insurance.
When you’re ready to purchase fleet insurance, an agent can help you determine if you have enough vehicles to make a fleet or if individual commercial policies would work better for you.
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Which companies offer the best fleet insurance?
Most of the major insurance providers offer commercial car insurance discounts. Some companies stand above others for their commercial policies.
Progressive
Progressive often earns the title of best commercial fleet insurance because of its flexible policies, long list of discounts, and expansive insurance product lineup. It also has one of the most highly-recommended commercial policies specifically for trucking companies. Read our Progressive car insurance review for more information.
Nationwide
Another company that receives praise for commercial insurance is Nationwide insurance. Like Progressive, Nationwide offers excellent discounts and inclusive policies. It also provides a substantial discount if your drivers use its monitoring system.
Farmers
Contracting fleets can find special coverage with Farmers. While Farmers doesn’t do quite as well as Progressive or Nationwide, it does include tools transported within business vehicles.
The Hartford
Finally, The Hartford designed a commercial policy specifically for fleets. You can enroll in its FleetAhead program by using wireless devices in your vehicles to encourage safe behavior and earn discounts.
How much does fleet insurance cost?
As with all types of coverage, the cost of fleet insurance depends on various factors. These include:
- The size of your fleet. The more vehicles you have, the more your policy will cost. However, most insurance providers give discounts for a large number of vehicles.
- The vehicles in your fleet. Smaller cars, such as vans or pickups, cost less to insure than heavy vehicles like semi-trucks and ambulances.
- The condition of your fleet. The age, value, and shape of your vehicles go into the cost of your policy. Typically, used cars are less expensive to insure because they cost less to repair or replace.
- The purpose of your fleet. Contractors, electricians, and plumbers typically pay the least, while car rentals, taxi services, and shipping companies pay the most.
- Your policy. While buying more coverage gives you better protection, it also costs more.
While your insurance provider will consider all these factors, a general rule of thumb is that you’ll pay $1,000 per small vehicle per year. For larger vehicles like semis, the price bumps up to about $1,500.
Most companies offer discounts to help you save money on your plans. Commercial fleet plans typically reward you for increased safety measures.
- Bundling. Most large insurance companies offer more than commercial auto policies. You can usually earn a discount by getting all your insurance needs covered by the same provider.
- Safety features. If you have advanced safety devices installed in your fleet, you could be eligible for this discount. Safety devices include GPS tracking, dash cams, and collision avoidance systems. Our car driving safety guide for teens and parents give even more safety tips and resources.
- Drivers with clean records. If your drivers have a clean driving record, you’ll probably earn a discount. Motor vehicle records are public information and are available for you to look at.
While there are other ways to save on fleet insurance, taking advantage of discounts is the most effective.
Do you really need fleet insurance?
The price of purchasing insurance coverage for your entire fleet might seem intimidating, but it’s a solid investment in the long run. Aside from knowing your vehicles and drivers are protected, there are several advantages to fleet insurance:
- Save money. Usually, getting a fleet insurance policy is cheaper than insuring each vehicle individually.
- Easier administration. Trying to juggle policies for individual cars sounds like a logistical nightmare. If all your vehicles are on the same policy, you have one payment to make, one place to make fleet insurance claims, and one agent to contact.
- Efficiency. All your business vehicles fall into the same plan when you have a fleet policy. A fleet insurance company will put every car on the same policy, regardless of how many people drive it, what you use it for, and what kind of vehicle it is.
When you buy fleet insurance, you protect yourself from costly repairs and medical bills that could cripple or even destroy your business.
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Find the Best Fleet Insurance
As a business owner, your time and money are valuable resources. Fleet insurance can protect both by giving you an easy, affordable way to cover every vehicle your business relies on.
When you’re ready to see fleet insurance rates, you’ll have plenty of opportunities to find the best price. Enter your ZIP code into our free tool today if you want to see what quotes might look like for you.
Frequently Asked Questions
What is fleet insurance?
Fleet insurance is a specialized type of commercial insurance that covers all vehicles owned by a business under one policy. Fleet insurance covers the same types of things as personal car insurance, such as liability, comprehensive, collision, underinsured/uninsured motorist, and medical payments. It provides additional coverage beyond the minimum liability coverage required by state and federal law.
Is fleet insurance required by law?
Yes, if you have a fleet of vehicles for business use, you are required by law to have commercial auto insurance. Most states require a minimum amount of liability coverage, but you can choose to add more coverage to protect your business and vehicles.
Can I get fleet insurance for any type of business vehicle?
Most insurance companies will offer fleet insurance for a wide range of business vehicles, including cars, trucks, vans, and even heavy equipment like forklifts. However, it’s important to check with your insurance provider to see what types of vehicles they cover under their fleet insurance policies.
Do I need to insure all of my vehicles under one policy?
No, you don’t have to insure all of your vehicles under one policy, but doing so can make it easier to manage and save you money in the long run. However, if you have vehicles with different types of coverage needs, you may need to purchase separate policies.
How do I file a claim with my fleet insurance provider?
If you need to file a claim with your fleet insurance provider, you should contact them as soon as possible to report the accident or damage. You’ll need to provide information about the incident, including the location, time, and extent of damages. Your insurance provider will guide you through the claims process and help you get your vehicles and drivers back on the road as quickly as possible.
Can I customize my fleet insurance policy?
Yes, you may be able to customize your fleet insurance policy to fit your business’s specific needs. For example, you may be able to add coverage for hired or non-owned vehicles, equipment breakdowns, or roadside assistance. It’s important to work with your insurance provider to ensure you have the right coverage for your business.
What happens if one of my drivers gets into an accident?
If one of your drivers gets into an accident while driving a fleet vehicle, your insurance policy will typically cover the damages and liability costs, as long as the driver was operating the vehicle within the scope of their employment duties. However, if the driver was under the influence or driving recklessly, your insurance provider may not cover the damages.
Can I add or remove vehicles from my fleet insurance policy?
Yes, most insurance companies will allow you to add or remove vehicles from your policy as needed. However, adding or removing vehicles may affect your premium rates, so it’s important to check with your insurance provider to see how these changes will impact your coverage and costs.
Compare The Best Insurance Quotes In The Country
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Brandon Frady
Licensed Insurance Agent
Brandon Frady has been a licensed insurance agent and insurance office manager since 2018. He has experience in ventures from retail to finance, working positions from cashier to management, but it wasn’t until Brandon started working in the insurance industry that he truly felt at home in his career. In his day-to-day interactions, he aims to live out his business philosophy in how he treats hi...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.