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What to Consider When Buying Commercial Fleet Insurance

What to Consider When Buying Commercial Fleet Insurance
What to Consider When Buying Commercial Fleet Insurance

When you own a fleet of vehicles, it’s important to have the right type of insurance in place. Commercial fleet insurance is different from personal or car insurance, and it covers the vehicles you use for work purposes like delivery or transportation. Here are some things to consider when buying commercial fleet insurance:

What is commercial fleet insurance?

Commercial fleet insurance is a special type of car insurance that covers multiple vehicles. It's cheaper than individual car insurance because it doesn't cover the cost of insuring one vehicle at a time, but instead covers multiple vehicles as part of an all-inclusive policy.Commercial fleet insurance can be used to insure any kind of vehicle - from cars and trucks to vans and motorcycles - but it's most often purchased by businesses who use commercial vehicles for their business purposes on a regular basis.Individuals may also purchase commercial fleets if they need protection against liability claims in case they are ever involved in an accident while driving a company vehicle or while using one for personal reasons (for example, if your boss allows you access to his or her truck).Learn more about commercial fleet insurance here.

Scenario: Motor Vehicle Insurance – Market value vs Agreed Value

Who needs commercial fleet insurance?

If you own a business that has more than one vehicle, then commercial fleet insurance is for you. This type of insurance can also be beneficial if you are in charge of managing the vehicles for your company but don't actually own them. Commercial fleet insurance provides coverage for all types of vehicles, including:

  • Heavy trucks/tractors
  • Vans and box trucks
  • Passenger cars and SUVs
  • Motorcycles
  • Forklifts
  • Delivery vehicles

Commercial fleet insurance covers the vehicles and their drivers, as well as cargo that is being transported by your company. This type of coverage is essential for businesses that use vehicles to transport goods or passengers.What does it cover?When purchasing commercial fleet insurance, it's important to take the time to get a clear picture of what you'll be covered for. The following are some of the most common types of coverage:

  • Legal liability: This covers your legal liability in case you're found responsible for damaging another vehicle or property. It can also cover compensation if someone is injured while in one of your vehicles—either by accident or on purpose—and this injury results in lost earnings as well as medical expenses and other costs.
  • Damage to other vehicles: Also known as collision coverage, this type of insurance pays out when one of your vehicles damages another while driving on public roads (such as driving into another car or hitting a fence).
  • Damage to property: This type provides coverage if one of your business' owned facilities (like a warehouse) is damaged by any kind of accident involving an insured vehicle (such as being hit by said vehicle).
  • Towing expenses and redelivery
  • Downtime
  • Recovery of a stolen vehicle

Visit our website to learn more about commercial fleet insurance and what it covers.

Different levels of commercial fleet insurance:Comprehensive full coverage

A comprehensive policy offers you the broadest coverage. It protects your fleet from unforeseen events and also provides indemnity for third party damage.Third-party property damageThe policy will only cover events where you (or someone representing your company) are at fault for damaging someone else’s vehicle or property. This policy will not pay you for any damage to your fleet or property.Third-party property damage, fire, and theftThis policy limits coverage to third-party liability as well as damage to your vehicle by fire or theft.

How commercial vehicle insurance is different to regular vehicle insurance

Commercial vehicle insurance is fundamentally different to regular private car insurance. It covers everything your business needs in terms of protecting its vehicles and assets, but it also offers a lot more options than standard car insurance policies.You'll probably find that commercial vehicle insurance costs more than regular car insurance, but there are a few reasons why this is so:

  • Commercial vehicle insurance tends to be more comprehensive than private motor policies as it has been designed with businesses in mind and often includes additional cover options such as legal expenses or personal accident cover for employees injured on the job.
  • The cost of commercial insurance varies depending on the type of vehicle you're insuring (for example, trucks will usually be more expensive due to their weight). In some countries, obtaining a license plate can also add additional fees onto your policy.

Costs of commercial vehicle insurance

Commercial vehicle insurance can be expensive, but there are ways to reduce the overall cost.The cost of commercial vehicle insurance is affected by many factors, including:

  • Your business type and location
  • The age and value of your vehicles
  • Where you drive your vehicles (and whether it's in a bad neighbourhood)
  • The type of vehicle covered (E.g. Heavy vehicles such as trucks will require a more expensive policy than light vehicles)

Your business type and location will determine which cover options are available for you. If you're in a high-risk industry like construction or transportation, special cover may also be available to help protect against potential damage caused by an accident or theft.The age and value of your vehicles will affect the cost of insurance, as older and more expensive vehicles are generally more likely to be stolen or damaged. If you have multiple vehicles that are worth less than $10,000 each, then standard insurance may be cheaper than extended cover options.

Commercial Motor Insurance Cover

Looking for commercial fleet insurance?

We hope that the information in this article has given you a better understanding of the different levels of commercial fleet insurance, and how they can benefit your business. Visit our website for more information.If you’re looking for a quote, or more information about our products and services, please contact us today.

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