This article is a complete guide to commercial fleet insurance, covering what commercial fleet insurance is and the types of coverage you can get.
Commercial fleet insurance is typically defined as any policy with five or more vehicles registered in the name of the business, but some insurers may require six, or even seven, or more cars to be eligible for fleet rating.
What is commercial fleet insurance?
Commercial fleet insurance is designed for businesses with two or more vehicles. It enables you to manage all of your commercial vehicles under a single policy, making sourcing, renewing, and budgeting easier.
It is important to note that families cannot use commercial fleet insurance because businesses can only purchase fleet insurance. Depending on your company’s policies, you may be able to use your commercial fleet vehicle for personal purposes.
What are The Types of commercial fleet insurance?
Commercial fleet insurance comes in different forms. Each specializes in a specific industry or vehicle size. They all include the three standard insurance options: third-party, third-party fire and theft, and lastly, comprehensive.
- Standard commercial fleet insurance:
This type of insurance covers cars used for business purposes, such as company cars.
- Courier insurance:
Courier insurance is a specialized insurance policy designed for businesses that drive multiple deliveries. Additional insurance, such as goods in transit, will be required to cover the items carried in the vehicles.
- Minibus and coach insurance:
Minibus and coach insurance cover cars with five or more passenger seats, and, like coach insurance, cars can be insured for public or private hire.
- Self-drive hire insurance:
Self-drive hire insurance is appropriate if you rent out your fleet of vehicles to people over the age of 25 who have a valid driver’s license.
- Haulage insurance:
Haulage insurance is designed for fleets of larger vehicles, such as trucks and heavy goods vehicles, that weigh between 7.5 and 44 tones and transport goods long distances or internationally.
- Taxi insurance:
You must have taxi insurance if you operate a taxi service. Taxi drivers cannot use standard vehicle insurance or fleet insurance. You must purchase minibus insurance if your taxi fleet has more than five vehicles.
What does commercial fleet insurance cover?
Commercial fleet insurance can cover you for third-party incidents, third-party fire, and theft, or fully comprehensive. You can also add on extras such as:
- Legal assistance
- Assistance with medical expenses, if necessary
- Breakdown coverage
- Vehicle loss or damage
- Windscreen cover
- Lock replacement for lost or stolen keys
How much does commercial fleet insurance cost?
The following factors determine the cost of commercial fleet insurance:
- The weight and size of your vehicles
- Where are your vehicles stored overnight
- Claims history
- Driver risk profile
- the number of drivers or vehicles in your fleet
- Time spent on the road
If your fleet is a high risk, purchasing will be more expensive. However, fleet insurance is less expensive than purchasing individual insurance for each person or vehicle.
Telematics, fleet technology, driver training, and good vehicle maintenance can all help you save money on fleet insurance.
The Differences Between Commercial Fleet Insurance Coverage and Non-Fleet Commercial Insurance Coverage?
There are two major distinctions between commercial fleet insurance and non-fleet commercial insurance.
- Fleet pricing is flexible. This is consistent with non-fleet pricing for commercial vehicles, which is based on fixed and unchangeable rates filed with government regulatory bodies such as the Financial Services Commission of Ontario and other provincial counterparts.
- Most commercial fleet insurance plans include (and should include) a fleet insurance endorsement, such as the 21b in Ontario, which helps reduce the administrative workload and the potential for gaps due to timing, reporting, or human error that can be associated with managing fleet insurance.
Conclusion
Commercial fleet insurance offers numerous benefits, such as easier management and potential cost savings compared to individual vehicle policies. By choosing the appropriate fleet insurance coverage, businesses can ensure the safety of their fleet, drivers, and other road users while streamlining the insurance management process.
FAQs on A Complete Guide to Commercial Fleet Insurance
What is commercial fleet insurance?
Commercial fleet insurance is a policy designed for businesses with two or more vehicles, allowing them to manage all their commercial vehicles under a single policy. This simplifies sourcing, renewing, and budgeting for insurance coverage.
What are the types of commercial fleet insurance?
Some types of commercial fleet insurance include:
- Standard commercial fleet insurance
- Courier insurance
- Minibus and coach insurance
- Self-drive hire insurance
- Haulage insurance
- Taxi insurance
What does commercial fleet insurance cover?
Commercial fleet insurance can cover:
- Third-party incidents
- Third-party fire and theft
- Comprehensive coverage
Additional coverage options may include:
- Legal assistance
- Medical expenses
- Breakdown coverage
- Vehicle loss or damage
- Windscreen cover
- Lock replacement for lost or stolen keys
How much does commercial fleet insurance cost?
The cost of commercial fleet insurance depends on factors such as:
- The weight and size of your vehicles
- Where your vehicles are stored overnight
- Claims history
- Driver risk profile
- The number of drivers or vehicles in your fleet
- Time spent on the road
What are the differences between commercial fleet and non-fleet commercial insurance coverage?
Two major differences are:
- Fleet pricing is flexible, while non-fleet pricing for commercial vehicles is based on fixed rates filed with government regulatory bodies.
- Most commercial fleet insurance plans include a fleet insurance endorsement, which helps reduce the administrative workload and the potential for gaps due to timing, reporting, or human error when managing fleet insurance.
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- I’m a firm believer that information is the key to financial freedom. On Coindecimal Blog, I write about personal finance and crypto.
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