What is fleet insurance?

If you are a business owner, your business may rely on a fleet of vehicles to perform important tasks and assist in the necessary day-to-day operations. This type of business often uses fleet insurance to cover all of the cars owned by the company.

Fleet insurance is a special type of commercial car insurance coverage that applies to a group of vehicles owned and operated under the same business name. Large companies, such as nationwide delivery businesses and food chains, have fleet insurance coverage to ensure that they don’t need to worry about employees becoming involved in car accidents.

You may be searching for fleet insurance, or you may be looking for a personal policy with different car insurance companies. Regardless of the type of car insurance you’re seeking, you can find the best deals on coverage by comparing quotes from multiple companies at once.

In fact, you can use our free quote tool above to begin your search for car insurance coverage today.

What is commercial fleet insurance?

Commercial fleet insurance is car insurance coverage for a fleet of vehicles owned by the same company. Companies can purchase small fleet insurance as well as insurance coverage for massive fleets of vehicles. You may even be able to purchase fleet insurance for your own vehicles if you use your personal car as part of your job for a specific company, such as a food delivery business.

Some of the most common examples of companies that utilize fleet insurance include:

• Government groups and agencies
• Construction companies
• Taxi and rideshare services
• Car rental companies
• Delivery companies
• Vehicles used for shipping and transport

In order for a company to purchase a fleet insurance policy, the company does not need to have the same type of vehicle. Additionally, there can be an endless number of drivers operating the vehicles. Fleet insurance will still apply to any of the cars or trucks covered under the policy.

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Are there requirements for fleet insurance?

While there really aren’t any specific fleet insurance requirements, many small business owners wonder whether they need to possess a certain number of vehicles in order to qualify for fleet insurance. However, the answer will vary based on the insurance company.

Some insurance carriers will only offer coverage if you have what is considered a large fleet — typically consisting of hundreds or even thousands of trucks, cars, or vans. But there are also plenty of insurance companies that offer small fleet coverage for anywhere from three to fifty cars.

If you own a small business and are looking for fleet insurance, you should speak with agents from multiple companies to determine your options and compare quotes. This will help you discern which company offers the best coverage at the most affordable rates.

What does fleet insurance cover?

All businesses that own fleets must meet the state auto insurance minimum requirements for coverage. This will include liability coverage and may also incorporate bodily injury and other forms of coverage, depending on where you reside.

Many business owners are interested in purchasing additional coverage on their fleets that include comprehensive and collision coverage. This full coverage will help to ensure that drivers are predominantly covered for accidents or mishaps. Some companies also include uninsured and underinsured motorist coverage with their fleet insurance.

How much is fleet insurance?

There are too many variables involved to know exactly how much you would pay for fleet insurance until you obtain a direct quote from a company. The number of vehicles you have in your fleet, the type of coverage you want, your location, and many more factors will significantly impact the outcome of your fleet insurance rates.

Because many companies look for full coverage on their fleets, it’s important to gain an idea as to how much full coverage car insurance costs in your state. The table below reveals the average annual full coverage rates in each U.S. state.

Average Full Coverage Car Insurance Rates by State

As you can see, full coverage car insurance rates vary tremendously from one state to the next. Because of this, you’ll want to acquire direct quotes from multiple companies in your state to discern how much you should plan on paying for coverage.

Keep in mind that the rates above apply to individual plans for personal vehicles. Fleet insurance may be less expensive per car than what is listed above since you plan to cover multiple vehicles with the same insurance company.

Should I buy fleet insurance?

If you are a small business owner, or if you drive a personal car for a larger business that requires fleet coverage — such as a delivery company — you may want to purchase fleet insurance.

Fleet insurance claims are handled similarly to personal car insurance claims. It will matter what type of coverage you have on your fleet and what happened to cause an accident or any specific damage to a fleet vehicle.

Regardless of the type of auto insurance you need, it is always wise to shop around online and simultaneously compare quotes for car insurance from multiple companies before making any final decisions. Doing so will allow you to ensure that you receive the coverage you need at the most affordable price.

Be sure to use our free quote tool below to find and compare car insurance rates that work with your fleet of vehicles today.

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