Fleet of commercial trucks on the highway

Is It Cheaper to Get Fleet Insurance?

Aug 10 2021

Need coverage for multiple commercial vehicles? Commercial fleet insurance is a type of insurance plan designed to cover three or more commercial vehicles. It takes the place of multiple commercial auto insurance plans set up individually per vehicle. 

But how much does fleet insurance cost? Though the cost varies, fleet insurance typically has a discounted group rate that is lower than individual commercial auto insurance plans for the same number of vehicles. However, the savings do not stop there. With a personalized commercial fleet insurance plan, you also save time and effort, as we’ll explain further in this guide.   

Fleet of commercial vehicles parked outside a building

Fleet Insurance vs. Individual Commercial Auto Insurance 

Earlier, we mentioned that if a business has a fleet of commercial vehicles, the most practical insurance type to get is fleet insurance, instead of individual commercial auto insurance plans per vehicle. 

Let’s start by establishing the similarities and differences between the two. 

Similarities 

Both fleet insurance and individual commercial insurance plans serve as a component of risk management for the commercial vehicles of a business. These insurance plans can be bought by virtually any business with commercial auto, including construction businesses, car rental companies, plumbing service providers, snow removers, and so on.

In terms of what triggers a claim for fleet insurance and commercial auto insurance, they are also quite similar. Lastly, these two kinds of insurance can cover various types of commercial vehicles. 

Differences 

Aside from the fleet insurance cost being generally lower for the same number of vehicles under commercial auto insurance, another main difference is that fleet insurance gives a more seamless experience. 

For standard commercial auto insurance, plans need to be set up for each commercial vehicle. This is one of the reasons why fleet insurance is a lot easier to manage, especially if you have two or more vehicles. As we will discuss further in this article, another benefit of fleet insurance is that it is also much easier to replace vehicles when the need arises. 

What Kind of Commercial Vehicles Can Be Insured By Fleet Insurance? 

Cars, cabs, minivans, vans, minibuses, SUVs, buses, trailers, trucks, and other heavy goods vehicles (HGVs) are all covered by fleet insurance. 

As long as a vehicle, falling under the above or similar categories, is needed for your business operations, it counts as a commercial vehicle. By virtue of this, it is insurable under fleet insurance with the right insurance provider.  

How Many Vehicles Count For Fleet Insurance? 

So far, we’ve mentioned that fleet insurance is ideal for businesses with two or more commercial vehicles.

However, the minimum number varies depending on the insurance provider. Commonly, the lowest number that classifies as a fleet is around two or three commercial vehicles. This is just one of a number of things that can vary depending on the insurance provider. 

Why Does Fleet Insurance Cost Less Than Commercial Auto Insurance?  

Fleet insurance is generally cheaper than commercial auto insurance because they typically offer discounted group rates. This is one of the main benefits that make fleet insurance attractive to savvy business owners.  

There is no fixed number on what the price difference is between having, for example, three separate commercial auto insurance versus fleet insurance for three commercial vehicles. The rates will ultimately depend on the insurance provider. There are, however, steps you can take to lower your fleet insurance cost. 

How Do I Lower My Fleet Insurance Cost Further? 

Like with other insurance types, history matters. Therefore, doing practices that can lower the accident rates tied to your business can help lower your fleet insurance cost. 

Here are some quick tips: 

  • Regularly check your employees’ driver’s licenses 
  • Continually improve your current drivers’ road skills and safety through training
  • Do background checks on your drivers (having drivers with tainted driving or legal histories can directly raise your fleet insurance cost)

A commercial vehicle driving into a foggy road

Important Benefits to Getting Fleet Insurance 

Aside from the relatively cheaper rates that fleet insurance offers, there are a number of benefits that will save you time and make the experience hassle-free. 

These include:

1. Overall Convenience Under One Contract 

With fleet insurance, you get just one commercial insurance contract for multiple vehicles. This means that you don’t need to keep tabs on the details of every single contract. Furthermore, premiums are much easier to manage, making it less likely that you miss payments. 

No business owner wants to be faced with the scenario of a road accident happening to one vehicle; only to find out that an internal mistake resulted in premium payments not being updated for that contract. This is why fleet insurance comes in handy as a part of your risk management plan. 

2. Seamless Vehicle Replacements 

Commercial vehicles are like steadfast workhorses for your business. Wear and tear happens at different rates but some time or another, commercial vehicles need to be replaced. 

With the right fleet insurance, you won’t need to worry about updating the insurance contract for every single vehicle replacement you get. Endorsements in the insurance plan will allow similar vehicles to be seamlessly covered when replacement time comes.

What A Comprehensive Fleet Insurance Covers 

In case of accidents or malicious acts from criminal elements, fleet insurance covers the costs for repairing or replacing your commercial vehicle. In addition, third-party property damage and bodily injury (involving third-party individuals, the driver, and passengers) will be covered as well.  

The Most Reliable and Hassle-Free Way to Get Fleet Insurance 

Now that you know the benefits that fleet insurance can offer, you may be eager to set up a policy for your business. One final insight we’d like to give is to remember that not all fleet insurance plans are the same. 

Once you start looking, you may find that some have more exclusions and some are not as comprehensive. It can get confusing from there. This is where KASE Insurance comes in to save the day. 

We specialize in personalized insurance plans for businesses from all industry types. Our team can expertly assess your business’s risks and put together the best possible insurance plan to address those risks. No nonsense. No guesswork. Just hassle free insurance from start to finish. 

To learn more about fleet insurance coverage, personalized fleet insurance cost, and other details, give us a call today or request a quick quote

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