A Guide to Fleet Vehicle Insurance

An easy and simple guide to understanding the laws around fleet insurance, what fleet insurance options are available and which one is right for your business vehicles.
Steps for finding fleet vehicle insurance

Businesses are legally required to implement fleet vehicle insurance across their fleet, but insuring each individual vehicle is both costly and time consuming. Luckly, most insurance companies offer discounted rates for insuring entire fleets under the same package. 

However, comparing the costs of insurance packages is only the first step in finding the right fleet vehicle insurance for your business. Other key things to keep in mind include the quality of service, the amount and type of coverage that’s provided and so on.

Remember: you’ll be working with this insurance provider for an extended period of time, so you want to make sure they’re a good fit for your company in every way. 

This article will break down the different types of fleet vehicle insurance, the pros and cons of each, how to apply for fleet insurance and what to prepare for your application. 

The Main Types of Fleet Vehicle Insurance 

There are three primary types of fleet vehicle insurance: third-party, third-party fire and theft, and fully comprehensive. Here’s an overview of each type of insurance and the benefits of each. 

1. Third-Party Insurance 

Third-party insurance is the most basic type of fleet insurance and therefore the cheapest. This type of insurance only covers third party damage done to another driver and / or their vehicle. This kind of insurance policy will not cover damage done to your own vehicles or drivers, meaning you’d have to pay for it out of pocket. 

2. Third-Party, Fire & Theft

With this type of fleet vehicle insurance, you’d have the same coverage as third-party insurance as well as coverage for stolen vehicles or vehicles seriously damaged by fire. This is neither the cheapest nor the most expensive insurance option, but it does provide you with extra coverage. 

3. Fully Comprehensive 

Fully comprehensive fleet vehicle insurance is the most expensive option, but it’s also the most comprehensive. With this type of insurance, you’ll be covered for third-party damage, theft, fire and damage to your own vehicles and drivers. 

Read more: Employee Company Car Agreement | Contract Template And Tips

Criteria to Consider When Choosing an Insurance Provider 

Choosing between insurance providers involves more than comparing upfront costs. There are another of other important factors to consider when choosing a fleet insurance provider, including: 

  1. What types of insurance are provided? (i.e. liability, passenger accident, full or partial comprehensive coverage, etc.) 
  2. What types of damage are covered? 
  3. How high are the copayments for damage? Does the copayment amount depend on the type of damage? 
  4. What’s the maximum coverage? 
  5. What’s the premium for the insurance package? 
  6. Does the insurance cover both the vehicles and the drivers? 

Want advice on how to better manage your fleet? Our fleet experts can give you a free consultation!

Insurance Qualifications & How to Apply

person sitting at computer looking at data and fleet vehicle insurance

Different insurance companies have different rules that will determine whether your fleet qualifies for their policies. However, a good rule of thumb is that a fleet with two or more vehicles should qualify for a fleet insurance package. 

Applying for fleet vehicle insurance is a complicated process, so it’s best to use an insurance broker to save you time and make sure you get the best deal. 

Before applying for a specific insurance plan, be sure to have the following information on hand for the insurance company: 

  • How many vehicles are in your fleet? 
  • What type(s) of vehicle is in your fleet? 
  • What type of trade does your business do? 
  • Have any of the vehicles sustained damage already? What’s the estimated cost of the existing damage? 
  • How old is each vehicle ?
  • How often are the vehicles used? 
  • Where are the vehicles kept overnight? 

This information will help the insurance company gauge the risk of covering your fleet and create an appropriate quote. 

Want to Save Money on Your Fleet Insurance? 

Fleet owners are legally required to insure their fleet vehicles, but finding the right insurance plan requires more than just comparing prices. The number, type and age of your vehicles can affect your insurance premium, as can the type of insurance you select. 

If you’re looking to safely cut costs on your insurance premium, investing in a fleet telematics system may be the answer. Many insurance companies give discounts to fleets with telematics systems. With a business vehicle tracking system like Fleet Geo, fleet owners can see the real-time location of their vehicles, be alerted to potential theft attempts and more. Valuable data like this may induce your insurance provider to lower your monthly premium. 

To learn more about Fleet Geo and how it can save your business time and money, contact one of our customer service representatives today.  

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