When a business uses at least three vehicles for work-related purposes, that is known as a fleet in the car insurance world. Naturally, the fleet of vehicles will require commercial auto insurance. That is where fleet insurance comes into play.
Owners whose business relies on transportation often buy a fleet policy to save not just time but also money. Of course, you’ll want to know the best fleet insurance and how to get it. This post answers that, along with everything else, you, as a business owner, should know about fleet insurance.
What Kind of Cars Are Eligible For Fleet Insurance?
There is no specific requirement for the vehicles you wish to put on a fleet insurance policy. They can be cars, vans, or trucks –as long as they are used for business purposes and not personal vehicles. However, the kind of vehicles you are insuring can determine how much you pay for your insurance. Trucks will naturally cost more to insure than a van would, for example.
What Kind of Businesses Get Fleet Insurance?
Contracting businesses that transport equipment to and from work sites and delivery and cargo-based services are the most common policyholders of fleet insurance. Rental car companies often get fleet insurance for their cars. These are just a few examples, but any business that has more than three cars in its service can get such a policy.
How do You Get Fleet Insurance?
Both local and national insurers may have fleet or commercial auto insurance. The process is like any other with car insurance. You are given a free quote after they look at your fleet.
Factors about your business and what you use the cars for can affect how much you pay for your fleet policy. As with shopping for car insurance, you’ll want to take advantage of how many quotes you can get. While not every insurer will provide fleet insurance, you can search both locally and nationally for those that do and narrow it down to the one that best fits your needs.
How Much Does Fleet Insurance Cost?
Now the answer to the burning question of cost. There is an average of anywhere between $83 to $125 monthly per car on the fleet policy. On a yearly scale, this would be around $1,000 for each car or van, while each truck would be around $1,500.
What Affects The Cost of Fleet Insurance?
The last section illustrated how the type of vehicles being insured affects the cost of a fleet policy. The larger and more expensive the vehicle is, then the more insurance premiums it will carry. In addition to the cars you want to insure, your fleet insurance cost will also depend on the following:
- Type of jobs your fleet will be used for - For example, fleets at worksites like construction will run higher premiums than those just used for delivery.
- How many vehicles will be on the policy - The good news is that fleet insurance is cheaper than having individual policies for each vehicle so take advantage of that.
- Driver arrangements - Who will be driving the cars, and their records will be looked at by the insurance company.
- Previous insurance claims - This is common for all types of insurance as providers look at your past history of car insurance claims to gauge risk.
- Any accidents on your fleet’s part - Your cars used for business will usually have a track record of any accidents they have been involved in, which insurers will look at.
Why is Fleet Insurance so Great?
There are several benefits to purchasing company insurance rather than personal automobile insurance, especially when you need to insure several vehicles. One of the benefits of purchasing a fleet insurance policy is that you only need to remember one renewal date. Some other great things about fleet insurance are:
- Saves time - Managing a fleet policy is easy, so you can focus more on your business.
- Easy renewal - As previously mentioned, one expiration date means easy renewal for multiple vehicles.
- Policy is usage-based - This means that if one of your vehicles is in need of repair, usage of a temporary vehicle in its place until it’s fixed is covered. Your insurance provider will recognize that you have a business to run.
What Are Other Things to Know About Having Fleet Insurance?
When it comes to adding or removing vehicles from one insurance policy, fleet insurance policies truly stand out. The policy’s stability is maintained while only the number of cars on the policy is changed. You can also adjust the amount of coverage you have on your vehicles at any time. This even includes adding different types of coverage like comprehensive and collision to your policy. All in all, every business owner’s life and profits are made easier with fleet insurance.
You don’t have to keep paying high rates for good coverage. Insurance Navy can help you get cheap car insurance today. Call 888-949-6289 or request a free quote online. Need more assistance? Stop in at one of our many storefronts to speak with a representative.