Fleet insurance is a single commercial automobile policy that insures multiple vehicles for a company or business. The benefit of a fleet policy is that the policy holder can have the same coverage for all their vehicles or customize coverage based on its needs. Vehicles do not need to be the same type to be considered a fleet for the purposes of commercial automobile insurance.
When obtaining a commercial automobile insurance policy for a fleet of vehicles, each company driver must have a proper license. This includes a standard driver's license and a commercial driver's license or CDL. Many insurance companies do not run a motor vehicle report for each driver because of the cost. Instead, the insurance application will ask you to list the license number as well as any traffic violations for all drivers included on the policy. This information is then used by the insurer to underwrite the policy.
The coverage for fleet vehicles varies depending on your particular business needs. However, the insurance company may require each vehicle to have a minimum amount of coverage or certain coverage types, such as collision and comprehensive.
Insurers offer many discounts for automobile insurance policies, including fleet insurance. The most common discount on a fleet policy is a multi-car discount, but ask what additional discounts or credits may be available. Insurance companies may apply credit for drivers who have taken a safety or driver's training course. Defensive driving courses may also count toward credit on fleet insurance.
Automobile insurers usually provide a better insurance rate for vehicles with anti-theft devices. You can install alarms, such as immobilizers (devices that prevent a vehicle from being stolen when not in use) on the vehicles for your company.
Vehicle Use and Size
Insurance companies will use multiple factors to determine the premium for a fleet policy. Factors include the vehicles' use and size. Vehicle use can include activities such as hauling dirt or garbage or making deliveries. Insurers calculate a vehicle's size using its gross weight.