Fleet insurance allows businesses to save time by managing multiple cars, trucks and vans under one policy. Having this type of policy also offers convenience in terms of renewal dates and the processing of claims.
A number of factors can impact the cost of fleet car insurance including driver safety scores, fuel prices and vehicle maintenance. A seasoned broker can help you choose the right policy for your business.
Usage-Based Insurance
Usage-based insurance, or UBI, monitors driving behaviors to give fleet drivers a lower rate. It uses telematics devices that plug into your vehicle’s onboard diagnostic port (OBD-II) to track data. These devices can tell the insurer when you’re braking hard, changing lanes and driving above the speed limit. They can also reveal if you’re parking in areas that are frequented by thieves or other criminals.
This method of calculating insurance costs benefits both the insured and the insurer. It rewards drivers with lower premiums for safe driving habits, and it encourages drivers to drive less, which reduces congestion, pollution and the number of accidents. The main drawback is that some drivers may not be comfortable with having their driving habits tracked. This is especially true if they are working remotely or logging few miles each year.
Third Party Liability Coverage
Commercial fleet insurance allows you to purchase one policy to cover all of your business vehicles. This makes it easier to manage than purchasing a policy for each vehicle individually.
Physical damage coverage protects your fleet from damages resulting from things outside of your drivers’ control, such as theft or weather. Many fleet policies include a combined single limit for bodily injury and property damage liability, which can save your business money by reducing the risk of overlapping limits.
The location and industry of your business can also affect your rates. For instance, businesses that transport hazardous materials are often charged higher rates than those who don’t. Another factor that impacts your rates is the mileage of your vehicles. The more your vehicles are driven, the greater the likelihood that they will be involved in an accident.
Collision Coverage
Fleet insurance is a specialized policy that allows businesses to cover multiple vehicles under one single policy. This makes it easier to manage and reduces administrative costs by eliminating the need for each vehicle to have its own individual policy.
Collision coverage is included in most fleet policies to protect against the cost of repairs or replacements that occur when a company-owned vehicle is involved in a collision with another vehicle or object. It also covers the risk of damage to company-owned vehicles from other events, such as theft, vandalism, weather, or falling objects.
Maintaining high safety standards can signal to insurers that your business is serious about driver and property safety, which may help keep premiums low. You can further lower fleet insurance premiums by increasing your deductible.
Comprehensive Coverage
Business owners can secure comprehensive fleet insurance that protects their commercial vehicles against physical damage caused by weather events, theft and vandalism. The policy can also include direct compensation property damage coverage, which pays out for damages to company cars regardless of who was at fault for the incident.
Businesses with a large fleet can save time by managing multiple policies under one umbrella rather than having to acquire individual policies for each vehicle. Additionally, fleet insurance can help to reduce costs by offering discounts for safe driving habits and other safety measures. For example, telematics systems that collect data on driver behavior may reduce premiums by showing safe driving tendencies such as avoiding rapid acceleration and rash braking. These devices are often paired with driver scoring systems that can help to identify risky drivers and provide advanced training for them.
Uninsured Motorist Coverage
The more miles fleet vehicles rack up, the greater the chance they’ll be involved in an accident. To compensate, most insurers offer advanced policies that include auto liability and physical damage. Auto liability covers third-party bodily injury and property damage, while physical damage coverage takes care of repair costs or vehicle replacement/reconstruction after a collision with another car or other mishap.
Uninsured motorist coverage, which safeguards against damages sustained by your business if an at-fault driver doesn’t have insurance, is also essential. It’s important to note that a standard fleet insurance policy isn’t restricted to just cars and vans; businesses can cover pickup trucks, buses, and telescopic handler forklifts as well. These vehicles can be insured under a single plan that’s tailored to their specific operations. assurance flotte