Commercial fleet insurance covers myriad vehicle types including cars, pickup trucks, trailers and more. The policy protects the business against losses and damages resulting from fire, theft, accidents, third party suits, maintenance, medical and incidental expenses. If you are interested in purchasing this form of coverage, here is a look at what you should know before investing in this policy.
Why should you consider commercial fleet insurance?
The most obvious benefit of choosing commercial fleet insurance is its affordability. Because all vehicles owned by the business are grouped under a single insurance policy, you save both time and money
These insurance products are designed to offer complete protection and have a plethora of coverage options to suit the specific needs of a business. Commercial fleet insurance works exceptionally well for establishments like courier service companies, car rental businesses, security firms and organizations that provide business cars to their employees.
Different types of commercial fleet insurance
Comprehensive cover: As the name suggests, this is the most in depth form of coverage in the category. This policy will safeguard the interest of a business in case of accidents, repairs, injury, third party liability claims etc.
Many insurance providers will also offer temporary vehicle replacement under this type of coverage. While expensive, a comprehensive policy is the just the right fit for certain types of vehicles and businesses.
Third Party cover: This type of insurance only covers third party damage and injury claims. The repairs and medical expenses of the other party in the accident are settled by the coverage provider on the presumption that the driver was at fault.
Fire and theft insurance: Businesses that purchase this policy will be covered against third party liability along with any damages incurred due to theft, vandalism or fire.
It is also possible to purchase comprehensive fleet insurance with roadside assistance. This form of insurance will shift the cost of hauling and mechanical assistance to the coverage provider
Factors that will impact the cost of commercial fleet insurance
A host of factors have a bearing on the cost of commercial fleet insurance such as:
Vehicle: The type, age and condition of the vehicle will without a doubt impact the premiums charged. Apart from this, other factors will also be considered like the type of business activity that the vehicle is used in, the nature and cost of the cargo that it is used to transport and the mileage.
Operator experience: The experience of the drivers who will be in charge of operating the vehicle, their driving records and age will also make a difference to the cost of commercial fleet insurance.
The number of vehicles insured under the policy: Business owners can earn deep discounts based on the number of vehicles covered. Also other factors like safety and anti theft features will act as determinants.
Because a range of factors come into play when determining the price on coverage, it would be prudent to judiciously research the offerings from various insurance providers in your area. In fact, an online comparison of commercial fleet insurance quotes can easily help you to save 15% to 30% on coverage.