Fleet Insurance: Description Of Fleet Insurance

Fleet insurance will get your damaged work vehicles back on the road quickly and reduce the adverse effects of business interruption and man-hours lost. Fleet insurance is primarily for businesses and is usually for a company with two or more vehicles. In some cases however, fleet insurance may be recommended even if you only have one business vehicle, as fleet insurance is based on how a vehicle is used. The only private person that would qualify for fleet insurance would be someone with a car collection.

There are three general headings that fleet insurance falls under:

  1. Comprehensive fleet insurance covers most risks caused by accidents and theft.
  2. Third party only fleet insurance covers any damage or injury to another party caused by your fleet and drivers.
  3. Third party fire and theft fleet insurance is the same as the second point with the addition of fire and theft coverage.

Fleet insurance, sometimes called commercial automobile insurance, is divided between cars and trucks. Car fleet insurance is primarily for businesses such as couriers, car rental companies, as well as taxi, bus and limousine services, security companies and businesses that provide employees with business cars. Truck fleet insurance covers pickups, vans and delivery vehicles, as well as dump trucks, tow trucks, logging trucks and cement mixers.

Your state governs fleet insurance requirements and the types of vehicles able to be covered by fleet insurance; contact your state to find out if your vehicles qualify and to confirm your coverage requirements.

Keep in mind that equipment used in conjunction with the vehicle is not covered under fleet insurance and will require a separate policy.

Fleet Insurance: Description Of Fleet Insurance

All drivers must be listed on the fleet insurance policy as well as the amount of driving they are expected to do; this information must be kept up-to-date. Your drivers should have the proper licensing for the vehicle they will be operating; they should also have a good driving record, and usually need to be over 25 and less than 74 years old in order for any possible future claims to be accepted by your insurance company. Your insurance company may disqualify a driver that does not conform to these requirements. It is recommended you gain your insurance company’s approval before hiring each driver.

If your business depends on vehicles and drivers, fleet insurance will help you keep you on the road.

Fleet Insurance: Importance Of Fleet Insurance

Fleet insurance will keep your business safe from expensive repairs and potential liability while your company employees and vehicles are on the road. Like standard automobile insurance, fleet insurance will help your business recover from accidents and get your vehicles and drivers back on the road.>

  1. If your company rents out vehicles such as cars, buses and limousines to the general public, you face a much wider range of issues than most commercial vehicle owners. When a customer rents one of your vehicles, they only need a valid driver’s license and a major credit card. Unlike a company employee, you do not get to interview your customer or know his driving history. As a rental company, your risk of vehicle and property theft and damage, as well as personal injury, is much greater. Your company requires much more comprehensive insurance that can help you with a much larger range of contingencies.
  2. Fleet insurance also helps out in that grey area between deciding what is considered personal use or business use of a vehicle. This sort of situation occurs in businesses that allow the use of personal vehicles for running business errands. Your fleet insurance can cover your business for any incidents that occur while you or your employees use their personal vehicles during working hours.
  3. Paperwork is a large part of being in business. Fleet insurance can help keep you streamlined and organized by having all your vehicles under one policy. It requires paperwork on your vehicles and drivers, as well as mileage logs, maintenance histories and schedules, and many other vehicle-related issues. Keeping all this information together, organized and up-to-date for your insurance company will also make it available and user-friendly for other business reasons.
  4. Large vehicles have inherent issues due to their size and mobility. Large trucks take longer to come to a stop, they have a wider turning radius and a driver’s visual range can be limited. When on the road alongside smaller and faster vehicles, there are higher risks of accident and injury.

The financial cost from an accident can be a serious blow to your business. In order to ensure your business does not come to financial ruin due to one accident, use fleet insurance for protection.

Fleet Insurance: Rates For Fleet Insurance

Fleet Insurance: Importance Of Fleet Insurance

Fleet insurance rates are affordable and being properly insured can save you and your business from serious financial hardship, and even bankruptcy, due to a single accident. There are many factors involved in calculating your insurance rate and there are steps you can take to reduce your premiums.

  1. The cost of your vehicle will increase your fleet insurance rate; expensive parts mean a higher indemnity and, therefore, a higher premium.
  2. An older vehicle with high mileage will increase your rate as it is much more likely to break down than a newer vehicle.
  3. Your drivers can affect your insurance rate. If you have drivers between 25 and 74 years of age with excellent driving records, you can expect a lower rate. Of course, you can expect the opposite, and even driver rejection, if you have poor drivers who are very young or very old.
  4. You can enroll your drivers in driver safety courses that your insurance company recommends. Certified drivers will reduce your insurance rates.
  5. Maintain your vehicle’s safety equipment including seatbelts and airbags. Have your tires and brakes checked and maintained on a regular basis.
  6. Take precautions to secure your vehicles on the job as well as during off-hours.
  7. There are many additions you can include in your fleet insurance policy, including such items as windscreen damage, breakdowns and towing, a courtesy car during vehicle repairs, and even legal and accommodation expense coverage.
  8. If you own a taxi service, you may be required to pay a higher insurance rate due to the amount of time your vehicles are on the road. Taxis have a higher risk of accidents and a higher risk of damage incurred by customers.
  9. If your business requires you to travel to different states, you may need special coverage for out-of-state driving.
  10. Purchasing fleet insurance with a high deductible will reduce your rates.

These are just a few of the things you can do to adjust your rates. Fleet insurance differs widely from business to business and from state to state. Your fleet insurance can be highly customized to fit the nature of your business.

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