Fleet Car Insurance: Should I get fleet car insurance?

Fleet car insurance costs between $83-125 a month per car. Fleet car insurance for personal cars may be available, but it is usually commercial auto insurance. A certain number of vehicles is needed for fleet insurance, usually a minimum of three.

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UPDATED: May 20, 2022

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Written By: Laura BerryReviewed By: Joel OhmanUPDATED: May 20, 2022Fact Checked

Here's what you need to know...

  • Fleet insurance is available for businesses or individuals insuring at least three vehicles.
  • Fleet insurance can save you time.
  • Fleet insurance also can save you money.

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.

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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
Vehicle TypeAnnual Car Insurance Rate per Vehicle
Sedans, SUVs$1,000/year per car
Trucks$1,500/year per car
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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.

For more information on car insurance, visit our main page for more car insurance information.

Fleet Car Insurance FAQs

Let’s recap what you’ve learned in the guide. Also, we’ll cover any frequently asked questions that you’ve seen across the internet.

Fleet insurance may not be for you, but either way, it’s time to see the numbers. You can start comparison shopping to get free, instant online car insurance quotes.

#1 – How much is fleet insurance?

Fleet car insurance costs $1,000 to $1,500 per car. You must have at least three cars to add to the policy.

#2 – What is a fleet insurance policy?

Fleet insurance policies are designed to insure six or more vehicles on one policy. Fleet insurance is standard in commercial car insurance policies.

#3- Do companies with five vans need fleet insurance? 

If you have less than five vans, it could be worth looking into a mini fleet van insurance policy.

#4 – Does fleet insurance cover personal use?

It depends. Car rental companies often enroll in fleet car insurance because different drivers will use their vehicles for business and personal use.

#5 – Who has the best commercial auto insurance?

Geico, State Farm, Allstate, and Farmers are in the top market share for auto insurance, so these companies are on the list as some best.

#6 – How much is insurance for a Sprinter van?

A Mercedes-Benz Sprinter Van costs $227 per month or $2,724 per year.

Businesses looking to ensure vehicle and employee safety, reduce their time spent on administrative tasks, and save money should consider fleet insurance. In addition to the peace of mind that comes with knowing your assets are protected.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Written by Laura Berry
Former Insurance Agent Laura Berry

Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP® Joel Ohman

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