Insuring your fleet

Insure your fleet for the long haul

Imagine having to find insurance for a dozen — or a hundred — vehicles. That’s the challenge when you’re insuring a whole fleet. If you operate multiple vehicles as part of your business and are buying insurance for them, you should know what you’re buying and why.

What does fleet insurance cover?

Much of this coverage is similar to that of personal auto insurance policies; the difference, of course, is scale. Basically, fleet insurance policies cover anything with wheels that’s used to transport humans or cargo. This includes cars, pickups, SUVs, vans, semis and the trailers they pull, box trucks, forklifts, and other machinery used in construction.

There are federal and state regulations that require every commercial fleet to have a minimum level of liability insurance, but a good policy will go beyond that to protect your people, your vehicles, and your business. As with personal auto insurance, carriers underwriting fleet insurance offer multiple types of coverage.

  • Collision insurance will pay for covered repairs to your company’s vehicles in case of an accident.
  • Liability insurance covers damages to other cars and property and for injuries if one of your vehicles is at fault in an accident.
  • Comprehensive insurance pays for covered damage outside of accidents, such as storms, vandalism, theft, and animal collisions.

Purchasing a fleet insurance policy for your company’s vehicles has several advantages. First, it’s less complicated logistically and cheaper than insuring each vehicle separately. Also, a fleet insurance policy will cover every vehicle your company operates, no matter who drives it, what kind of vehicle it is, or what it’s used for. You can also tailor your policy to cover your business' special needs, like adding coverage for vehicles your company rents, use of personal vehicles on company business, and roadside assistance.

What’s the cost of fleet insurance?

Estimates vary, but your company should expect to pay about $1,000 per small vehicle per year, and up to $1,500 yearly for larger vehicles. Multiple factors combine to determine your premiums, including fleet size and condition, the number and type of vehicles you operate, and what your vehicles are used for.

Are there ways my business can get lower premiums?

If your fleet is equipped with safety features such as dashboard cameras, collision avoidance systems, and GPS tracking, it may lower premiums. If you bundle your fleet insurance with other types of coverage, that may also net you a discount, as will a clean driving record for your company’s drivers.

The information included here was obtained from sources believed to be reliable, however Grinnell Mutual Reinsurance Company and its employees make no guarantee of results and assume no liability in connection with any training, materials, suggestions, or information provided. It is the user’s responsibility to confirm compliance with any applicable local, state, or federal regulations. Information obtained from or via Grinnell Mutual Reinsurance Company should not be used as the basis for legal advice and should be confirmed with alternative sources.

Sources: The Zebra, U.S. Insurance Agents

10/2023