What is fleet insurance?

Operating your own trucking company with a fleet can be hard enough without having to worry about insurance coverage for each one of your vehicles. Whether it’s two or 200 vehicles, maintaining and updating your insurance for each truck can be a very time-consuming task. You can save yourself time and money with the right commercial fleet insurance policy. Read on to find out how what fleet insurance is, what it covers, and policy factors to consider. 

How does fleet insurance coverage work?

With fleet insurance, you can protect all of your vehicles and equipment conveniently with one overall policy. As long as you have two or more vehicles with your business, you can obtain some form of fleet insurance which then acts as a policy over every one of your vehicles. 

Essentially, instead of creating an insurance policy for each individual car and driver, you get a single policy that covers a fleet. This saves time when it comes to renewals and will likely save you money compared to the alternative. 

What does a fleet insurance company offer?

Commercial fleet insurance policies offer the same peace of mind as private auto insurance policies. They protect your business when accidents occur, no matter whose fault it is. On a high level, here are the main policy types.

Bodily injury 

Bodily injury coverage refers to any injuries or even death that are a result of an accident when your business is at fault. Whether it is someone who works for your company or someone unrelated to you they will be covered. Always check with your insurance provider and insure you have this coverage in case you need medical or legal defense. 

Property damage

Property damage coverage only covers damages done by your vehicles. If one of your vehicles does damage to another person’s property, your fleet insurance policy will cover their damage. Keep in mind this does not cover damage done to your property by others. An example would be that one of your trucks runs over someone’s mailbox, this is the coverage you would use. 

Combined Single Limit (CSL)

A combined single limit, which is also known as CSL, condenses your policies by combining the limit from a property damage policy and a bodily injury policy. This makes it even easier to have one total policy instead of needing multiple. 

How many vehicles constitutes a fleet?

While a fleet is technically anything with two or more vehicles, there are usually two separate types of fleets that you can have which are large and small. Both are determined by the number of vehicles in your fleet. 

Small fleets

Small fleets are going to be held by small to medium-sized businesses. There won’t be many vehicles but the average small fleet could be anywhere from two to 50 vehicles. This can feel like a lot depending on the size of the company. Most owner-operators will likely be functioning with small fleet insurance options that can cover all types of vehicles. 

Large fleets

Large fleet insurance options are going to be applicable primarily to larger businesses. While the categorization of fleet size can vary based on the insurance provider, a large fleet can be anywhere from 50 vehicles to thousands of vehicles. 

How much does a fleet auto insurance policy cost?

Like regular insurance, you cannot find a base amount to expect when looking for commercial fleet insurance. There is a multitude of influential factors such as the industry, vehicle type, vehicle usage, history of the driver, number of vehicles, company safety record, and much more. One of the most expensive types of fleets to insure is larger trucks, like a semi-truck, because of their price and expected high mileage being driven often. 

Is it cheaper than regular insurance?

When you first see the number for your fleet insurance, it can feel somewhat daunting but when you compare it to individual policies of single-vehicle policies, this will save you money overall. You’re protecting every single one of your assets and covering all of your drivers with one policy. Compared to maintaining and organizing all of the policies alone you will be saving time and money. 

Advantages of truck fleet insurance coverage

There are many ways that fleet insurance provides advantages for its users such as just simplifying the process into one lump policy. Doing this makes it easier to keep track of especially when it comes time for renewal. 

With all fleet vehicles being under one policy, it can make adding on new drivers and additional vehicles much easier. That combined with cheaper prices from the combination of all your vehicle insurance are the biggest benefits from using a commercial fleet policy. 

Types of commercial fleet vehicle insurance coverage

Here are the main types of fleet vehicle insurance coverage to consider:

• Comprehensive coverage: This protects against damage to your fleet vehicles from non-collision incidents like theft, vandalism, natural disasters, or falling objects, regardless of fault. It’s particularly valuable for fleets that operate in high-risk areas or store vehicles outdoors.
• Collision coverage: This pays for damage to your fleet vehicles caused by accidents with other vehicles or objects, regardless of who is at fault. It’s essential for protecting your investment in the vehicles themselves, especially when operating in heavy traffic or challenging conditions.
• Liability coverage: This covers bodily injury and property damage that your fleet vehicles and drivers cause to others in an accident where you’re at fault. It’s typically mandatory and is crucial for protecting your business from potentially devastating lawsuits.
• Physical damage coverage: This combines comprehensive and collision coverage into one policy, providing complete protection for your vehicles against both collision and non-collision related damages. It’s particularly important for fleets with high-value vehicles.
• Cargo coverage: This protects the goods being transported by your fleet vehicles against damage, theft, or loss during transit. It’s essential for businesses that transport valuable merchandise, equipment, or materials.
• Non-owned auto coverage: This protects your business when employees use their personal vehicles for company business. It fills coverage gaps that might exist between personal and commercial auto policies.

4 tips for finding the best commercial fleet insurance company

Insurance can be confusing, especially when you are using commercial fleet insurance. Make sure you find an insurance company, provider, and agent that understands the trucking industry and your needs. Follow these tips to set your fleet up for success.

1. Research specialization and experience

• Look for insurers with specific expertise in your industry or vehicle type (e.g., trucking, delivery, construction)
• Check how long they’ve been handling fleet insurance and their understanding of your business needs
• Read reviews and get recommendations from similar businesses in your industry

2. Compare coverage and pricing

• Get quotes from multiple insurers (aim for at least three or four)
• Look beyond just price; consider coverage limits, deductibles, and exclusions
• Ask about discounts for safety programs, driver training, or telematics usage

3. Evaluate claims process and service

• Research their claims handling reputation and response times
• Check if they offer 24/7 claims support
• Ask about their network of approved repair shops
• Consider whether they provide dedicated claims adjusters for fleet accounts

4. Look for value-added services

• Check if they offer risk management support
• Ask about driver safety training programs
• See if they provide fleet management tools or telematics integration
• Inquire about accident investigation services
• Find out if roadside assistance is included 

Get peace of mind with fleet insurance

Fleet insurance coverage can save your operation time, money, and headache. Once you link up with the right commercial trucking insurance company and get the perfect coverage, you can rest assured knowing your assets and crew are safe on the road.

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