If you manage more than just a few vehicles, commercial fleet insurance is essential. Securing fleet insurance, following fleet management best practices, and using telematics can help save you money, reduce accidents, and protect your drivers’ lives.

Tailored to Your Business

While do-it-yourself insurance might seem like an easy choice initially, any savings you make upfront could be outweighed by the long-term risks. Gaps in coverage, missed discounts, and increased accident rates can result in substantial losses. Fleet insurance makes managing your vehicle pool much easier, covering all your vehicles in a single policy, no matter their location.

Types of Fleet Insurance Policies

There are various commercial fleet insurance plans available to suit different business needs. Some common options include:

Scheduled Vehicle Policies: Ideal for smaller fleets with few changes in size or activity over the year.
Mileage-Based Policies: Best suited for fleets of 15 or more vehicles that cover long hauls regularly.
Gross Revenue Policies: Ideal for companies that generate most of their revenue from fleet activity.

Your state will require a minimum liability coverage limit, such as $1 million, but you can opt for higher limits if needed. Liability insurance covers claims involving injury and/or property damage caused by your business. Additionally, you can choose collision and comprehensive coverage for damage caused by fire, theft, vandalism, or non-collision incidents, including windshield coverage.

Additional Coverage Options

You can also integrate a wide range of fleet insurance add-ons. These include broker bonds, cargo insurance, workers’ compensation, employment practices liability, and umbrella or excess liability for large losses. Be sure to ask your insurer about discounts for bundling multiple policies.

If your drivers transport valuable equipment, inland marine coverage may be necessary. You can also add coverages like uninsured motorist insurance and roadside assistance for an additional cost.

Power in Numbers: Save on Fleet Insurance

Fleet insurance premiums are typically calculated on a group basis, reducing overall costs. A single policy for your entire fleet creates efficiency by reducing paperwork and simplifying vehicle additions or swaps during the policy year. Fleet insurance also ensures that any driver with permission from the business can operate any vehicle.

If you’re looking to save even more, consider increasing your deductible. However, reducing accidents through driver safety programs is one of the most effective ways to lower costs. Research shows that offering safe driving incentives is a proven method to minimize accidents.

Understanding Fleet Insurance Costs

The cost of commercial fleet insurance varies based on several factors, including the size of your fleet, vehicle types, driving history, coverage limits, and the nature of your business operations.

Key cost influencers:

Fleet size: The more vehicles you have, the larger your premium — but bulk policies can offer savings.
Driver history: Fleets with clean driving records enjoy significantly lower premiums.
Vehicle types and use: Heavy trucks, hazardous cargo transport, or frequent long-distance hauls can increase costs.
Coverage limits and add-ons: Higher liability limits and additional coverages like cargo protection or uninsured motorist insurance come with added costs.
Telematics adoption: Using telematics and safety technologies may result in insurance discounts.

Typical cost ranges:

Fleet insurance premiums in the U.S. generally range from $1,200 to $3,000 per vehicle annually, influenced by factors like fleet size, type of coverage, and business use. Here’s a breakdown:

Small businesses: Smaller fleets usually see premiums starting around $1,200 per vehicle annually, depending on factors like vehicle usage, driver records, and coverage levels.
Large fleets: Companies operating larger fleets often pay toward the higher end of the scale due to increased risk exposure and broader coverage needs.

Regional variations are also significant. States with heavy traffic and higher accident rates, such as New York and Florida, tend to have higher insurance costs. In Florida, cities like Miami and Tampa can experience even higher premiums due to dense urban traffic and elevated risk factors.

Consulting with a knowledgeable fleet insurance agent can help you find the right balance between comprehensive coverage and cost efficiency tailored to your location and business needs.

Safety First: Improving Driver Safety

The insurance company will evaluate your company’s driving history, typically over the last three years. They’ll review your safety manuals, vehicle operation policies, and drivers’ motor vehicle records. The better your safety record, the more insurable your fleet will be, resulting in lower premiums.

Some fleet insurance levels offer assistance to improve driving safety. They may include technology that tracks traffic, vehicle locations, fuel usage, mileage, and engine function. Insurance companies may also offer distracted driving prevention tools and data analysis to help reduce accidents and enhance fleet efficiency.

These fleet management solutions often include online platforms that allow you to manage important fleet data, track job applicants’ driving histories, and monitor drivers using telematics and regular motor vehicle reports.

Final Thoughts: Protecting Your Fleet and Business

With the right fleet insurance coverage, you can protect your vehicles, employees, and business. Speak to your insurance professional to understand the full range of options available to you.

Additionally, continuously reviewing and updating your fleet insurance policy is essential as your business evolves. As fleet operations grow or change, it’s crucial to ensure that your coverage keeps pace with new risks, regulatory requirements, and any modifications to your fleet. Working closely with an experienced agent can help ensure you have the most appropriate coverage for your business needs, providing peace of mind and allowing you to focus on growing your operations.