FAQs About Fleet Insurance

As you’re already well aware, auto insurance is a state requirement. Though the type of auto insurance you carry varies by state, every driver out on the road, by law, must have an auto insurance policy. It’s the same for businesses: if your company uses vehicles for work-related transportation, deliveries, pick-ups, drop-offs or in some other capacity, they need to be insured. Are you wondering exactly what type of auto insurance your business needs to cover its vehicles? Are you starting to worry that you don’t have what you need, or really understand what it is you need? Wipe that cold sweat from your brow—here are 7 frequently asked questions about fleet insurance…and the answers you’re looking for to settle those nerves!

Q: What is fleet insurance?

A: Fleet insurance is an auto liability insurance coverage plan that protects your business’ vehicle fleet. If you or an employee are responsible for an auto accident during work hours performing a work-related task, fleet insurance will cover the damages sustained to the other driver’s property or person. You can personalize the plan to include collision coverage.

Q: Is fleet insurance different from commercial auto insurance?

A: No, Fleet insurance and commercial auto insurance are one and the same.

Q: What kind of fleet insurance do I need in my state?

A: Fleet insurance coverage requirements will be different from the personal auto insurance requirements in your state. To learn what your state law dictates, visit your state’s transportation rules and regulations online or contact your local DMV.

Q: What is the minimum number of vehicles my business has to have to get fleet insurance?

A: This depends on the insurance provider you are doing business with. Some insurance providers require that you have at least 2 operating vehicles to qualify for commercial auto insurance while others require 5 or more. When comparing commercial auto insurance quotes among competitors, make sure to ask how many vehicles the premium includes and if you qualify for the coverage.

Q: Does fleet insurance cover different types of vehicles used by the same company?

A: Yes, fleet insurance not only covers different types of vehicles; they also don’t all have to be used for the same purpose. For example, one vehicle can be used to chauffeur the boss and clients around, while another can be used to deliver products. As long as the vehicles are being used for work-related purposes, they can be covered by a commercial auto insurance policy.

Q: What factors play in to the cost of the insurance premium?

A: Similar to your personal auto insurance policy, your fleet insurance premium cost is affected by the following:

-The age of the vehicle(s)

-The value of the vehicle(s)

-The type of vehicle

-How the vehicle(s) will be used

-Where the vehicle(s) will be housed

As shown above, there are many factors that play into the cost of your fleet insurance premium. If you are using vehicles worth less that $5,000, opt for liability-only fleet protection, this will get you a better premium cost.

Q: How can I get a discount on my fleet insurance premium?

A: Just ask! When comparing commercial insurance policies, ask your prospective insurance agent if you qualify for any discounts. A sure way to get an insurance discount is by bundling your commercial auto insurance policy with your general commercial insurance policy. Bundling insurance policies will always get you a lower premium rate.

Now that you’ve learned a little more about fleet insurance, you can go out and compare rates and coverages with and find a policy that meets your needs.


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