Commercial Fleet Insurance

Many companies rely on a fleet of commercial vehicles to complete daily business operations. Taxi services, car rental companies, delivery services, and construction companies are just a few industries that may maintain a fleet of vehicles. Regardless of your industry, you'll need the right protection for your fleet against accidents, theft, vandalism, lawsuits, and more. A commercial fleet insurance policy can be more affordable than insuring the vehicles individually under commercial auto insurance.

An independent insurance agent in your area can help you get set up with commercial fleet insurance today. They'll evaluate your business's unique coverage needs to find the ideal policy. But first, here's a behind-the-scenes look at commercial fleet insurance and when it's necessary.

U.S. Commercial Vehicle Fleet Statistics

The rental and leasing industries have been impacted harshly in recent years. However, these industries have once again been on the rise. In fact, commercial vehicle fleet registrations in the U.S. are fast approaching pre-pandemic levels. Here are some recent U.S. commercial vehicle fleet stats to give you a better idea:

• The number of commercial vehicle registrations in the U.S. rose by 14% last year. 
• By the end of 2023, more than 1.6 million commercial vehicles were registered in the U.S.
• The rental and leasing industry is the fastest-growing section of commercial fleet vehicles.
• Last year, registrations in Class 2 commercial fleet vehicles increased by 21%. 
• The only decrease in registrations in the commercial fleet industry last year was in Class 1 vehicles, which fell by 18%.

After a whopping 40-60% decrease in many types of commercial fleet vehicles during the pandemic, the industry is well on its way to recovering. As the demand for commercial vehicles continues to increase, this makes the need for commercial fleet insurance more important than ever.

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What Is Commercial Fleet Insurance?

You can purchase commercial fleet insurance to cover liability risks, collision damage, and other threats for all of your company’s vehicles. These can include cars, buses, vans, SUVs, and trucks, ranging from construction vehicles to tractor-trailers. 

Vehicles insured under a fleet insurance plan don't need to be used for the same purpose. For example, you can insure your business's construction vehicles and commercial cars under the same policy.

While some commercial vehicle insurance companies may require more than five business vehicles for you to purchase fleet insurance, some insurers allow this coverage for businesses with just two vehicles. 

In many cases, however, fleet insurance is most cost-effective when you have at least three business vehicles on the policy. Purchasing commercial fleet insurance is typically a much more efficient and cost-effective way to protect your company's many business vehicles than by insuring each vehicle on a separate commercial auto policy.

What Does Fleet Insurance Cover?

Fleet insurance provides liability insurance coverage for all your company’s vehicles in one policy. Often, these policies include provisions to allow employees to drive any vehicle in your fleet and be covered if they cause an accident. 

At a minimum, this special type of commercial auto insurance policy will provide enough collision and liability coverage to meet your state’s insurance requirements for commercial vehicles. Here are some of the most common coverages found in commercial fleet insurance:

• Collision coverage: Pays for damage to your business vehicles from a collision with another object, regardless of fault. 
• Comprehensive coverage: Pays for damage to your business vehicles due to a non-collision event such as a flood or theft. 
• Uninsured/underinsured motorists coverage: This can reimburse your business for costs associated with an accident involving an at-fault driver who doesn't carry adequate car insurance of their own.
• Commercial vehicle liability coverage: This can reimburse your business for lawsuit expenses related to third-party claims of bodily injury or personal property damage caused by your company vehicles.
• Towing and roadside assistance coverage: This can cover the cost of towing services and other roadside assistance if a company vehicle breaks down while on the road.
• Medical payments coverage: This can pay for medical expenses if an employee or their passengers get injured in an accident, regardless of fault.
• Hired/non-owned auto insurance: This can cover incidents that occur when an employee drives a personal vehicle for business purposes. 

You may want to get other types of business insurance for your company to protect aspects other than your commercial autos. Work together with your independent insurance agent to protect your business from every possible angle. Also, be sure to ask your agent to review your policy's coverage exclusions with you before you ever need to file a claim.

How Much Does Commercial Fleet Insurance Cost?

The price range for fleet insurance policies varies greatly according to a number of factors. Naturally, the more vehicles are insured on a commercial auto policy, the more it costs. Some other factors that can influence commercial fleet insurance premiums include the following:

• The age and value of your vehicles: Purchasing used vehicles can save you money on insurance as they are less expensive to repair than custom or new vehicles.
• The intended use of your vehicles: Those who do service-oriented work, such as plumbers and locksmiths, typically pay the least for insurance. Vehicles used for retail purposes, such as pizza delivery cars and floral delivery vans, are in the mid-range for policy costs. Those who transport people or deliver goods to other businesses typically pay the most for commercial car insurance.
• The type of vehicle: Passenger cars are less expensive to insure than vans and SUVs. The cost of coverage for commercial trucks varies widely depending on their class. 
• Your chosen policy options: The more coverage you need, the more your policy will cost. However, more comprehensive policies may save you from a major loss in the event of a serious accident.
• Your policy's deductible: Higher deductible amounts can lead to lower premium rates. However, your business will have to pay more out-of-pocket when filing a claim.

An independent insurance agent can help you compare commercial auto insurance quotes from multiple carriers in your area. They'll help you determine the exact commercial auto insurance cost your business can expect.

Do Rideshare Drivers Need Commercial Fleet Insurance?

Rideshare drivers who work for companies such as Uber or Lyft must be equipped with the proper auto insurance policies. Uber, Lyft, and other rideshare services provide at least some commercial auto insurance for their drivers, but you may still need to supplement this coverage with your own policy. 

You might want to consider rideshare gap insurance, which can protect you during the phase of work in which you're using the app, but not currently transporting passengers or on the way to pick passengers up. An independent insurance agent can help you get equipped with all the supplemental rideshare insurance you need.

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Tips for Maintaining a Safe Fleet of Vehicles

Accidents happen, even to the best drivers. However, because many accidents result from mechanical failures or driver inexperience and inattention, taking a few simple precautions can reduce your risk of liability in a commercial fleet collision and may even earn you discounts on fleet insurance. Here are some safety tips to consider:

1. Be aware of and comply with all state and federal fleet safety regulations.
2. Choose qualified drivers and review their motor vehicle records annually.
3. Provide your drivers with adequate training and periodic reviews of safety procedure protocols.
4. Train drivers to conduct quick routine vehicle inspections before driving them.
5. Reward safe drivers with awards and incentives, as this can be an effective way to reduce accidents, injuries, and workers' compensation claims.
6. Pay attention to your drivers' actions when on the road by conducting periodic checks or installing GPS monitoring devices to ensure they're using company vehicles safely.
7. Keep company vehicles well-maintained, and be sure to retain records of all maintenance work completed.

Following these simple safety protocols can help your company greatly reduce its risk of accidents, lawsuits, and the need to file commercial fleet insurance claims.

Here's How an Independent Insurance Agent Can Help

Independent insurance agents also have access to multiple insurance companies, ultimately finding you the best commercial fleet coverage, accessibility, and competitive pricing while working for you. They'll assess your unique business's needs for its company vehicles and get you matched to the ideal policy. And down the road, your agent can help you file commercial vehicle insurance claims and update your coverage as necessary.