Fleet Car Insurance Explained [2024]

How many vehicles are needed for fleet insurance? For those commercial operations with three or more cars, trucks, or vans, fleet car insurance is a necessity for saving time and money and avoiding hassles. Fleet car insurance covers all vehicles that a business or individual owns under a special type of car insurance policy.

Not all of the best car insurance companies offer fleet auto insurance. Find out which are the best fleet insurance companies, how to get a fleet car insurance quote, and who needs fleet car insurance.

What is fleet car insurance?

Fleet car insurance is commercial vehicle insurance that covers multiple vehicles and drivers. This type of insurance is required to protect your business and employees. For example, you would need fleet insurance if you own a car rental company because you’re expected to provide protection for your employees.

When a company owns or leases vehicles, regardless of how many, commercial fleet auto insurance is required to protect the vehicles and drivers. Many businesses wonder if fleet insurance is expensive, however, the cost of your commercial auto insurance will depend on what types of vehicles you have in your fleet.

Read more: Compare Car Insurance for Business Leases: Rates, Discounts, & Requirements 

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How much does fleet car insurance cost?

Fleet car insurance can vary by the make and model of the cars you want to cover. Let’s look at general fleet insurance rates.

Cost of Fleet Car Insurance

Read more: How To Insure Commercial Trucks for Personal Use

These car insurance rates reflect commercial fleet insurance costs. Car insurance companies that offer fleet car insurance often give lower rates per year because several cars are on the same car insurance policy. Fleet insurance for personal cars could have higher rates. It depends on the car insurance policy agreement.

It’s common for car rental companies to use fleet vehicle insurance, so they don’t have to pay for individual policies. Also, fleet insurance is standard among commercial car insurance companies. Fleet insurance does still use driving record checks to help determine rates.

Which companies have commercial car insurance?

Geico and Progressive fleet insurance is available through the companies’ commercial car insurance policies. Farmers and Allstate also offer commercial auto insurance. If you need to make a claim, contact the fleet insurance company claims phone number.

Fleet car insurance can vary by state and company. If the top car insurance companies are too expensive, go local. Fleet car insurance in Michigan is very competitive. Try getting a commercial car insurance quote from a fleet insurance broker. Fleet car insurance for families is unusual as they don’t usually qualify for commercial coverage.

Advantages of Fleet Car Insurance

There are many advantages to purchasing fleet insurance, rather than individual auto insurance policies, mainly when the business insures more than ten vehicles. One of the benefits of a fleet insurance policy is that the policyholder need only remember one renewal date, rather than one for each insured vehicle. It doesn’t matter if you are insuring dump trucks or taxis, this is the case.

Also, along with saving the company money, commercial car insurance of this type cuts down on paperwork for the manager of the fleet.

With fleet insurance, the company’s time can be focused on the day-to-day operations of the business, rather than auto insurance. Other advantages include:

• Time – What would your business be like if you had dozens of vehicles to manage, and each one had a separate policy? What would happen if you forgot to renew one of the policies? The wasted time alone would be a deficit to your company’s bottom line.
• Renewal – The simple renewal of a fleet insurance policy, rather than that of multiple policies, is yet another advantage. Additionally, your broker will be more likely to attempt further to search for additional discounts or incentives when they have only one policy to manage.
• Usage – Yet another benefit has to do with the actual usage of the policy. For example, if one of the fleet vehicles has to be repaired, what would you do? Generally, one call to your insurer would do the trick, and, depending on your policy, they may arrange for a comparable, temporary vehicle to replace the one that has been damaged.

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Paying for a Fleet Car Insurance Policy

One of the essential considerations surrounding insurance for a fleet is how payment for the policy will be made. Many companies offer a variety of payment options, including monthly and quarterly, semi-annual, and annual plans. What’s more, these companies will offer their policyholders a discount when the premium is paid in one or two payments.

The benefit of this is twofold; not only do you save money in the long run, but you also save time, processing the paperwork for one policy rather than several policies. One of the most critical processes is the review of your credit. According to the Federal Trade Commission, you can receive a discount on services like commercial and personal car insurance if you have excellent or good credit.

You encounter several issues. No company is perfect, so you may have some complaints about fleet car insurance policies. According to the Consumer Financial Protection Bureau, California and Florida have the highest number of complaints per 1,000 people.

Managing Your Fleet Car Insurance Policy

The flexibility and convenience of a fleet insurance policy truly shine when it becomes necessary to add or remove vehicles from one policy. The policy’s integrity remains intact; nothing changes, save for the number of cars you will continue to insure.

The cost of your premium may go up or down, but the policy is still the same in terms of coverage, and what’s more, the adjusted premium is pro-rated.

The amount of coverage is also flexible. This means that newer vehicles can enjoy fully comprehensive car insurance coverage, particularly if they are being financed while older ones may be covered by liability only. However you decide to tailor your policy, you and your company are in control.

There will be other elements to the policy that should be included as well, just like a single-vehicle policy.

• In addition to the policy’s standard elements, you may also want to consider potential extras for your fleet insurance policy, such as coverage for legal fees and expenses, as well as coverage in case a vehicle breaks down.
• Upon locating the insurance company that suits all your needs, be sure to ask as many questions as possible. This is a must, especially for those individuals or businesses who never have before purchased fleet insurance. That way, your policy can be adjusted to the needs of you and your company.
• In your search for the right policy, you will discover that many companies offer comprehensive insurance policies that will ensure that your insurance needs are fully met.

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