If you operate a business with commercial vehicles, making sure to insure them with the appropriate fleet insurance saves you both legal and financial troubles down the road. Insurance companies view vehicles used for work as higher-risk, and therefore they have different requirements, premiums and policies attached.
Protect yourself and your business by understanding commercial fleet insurance and how to get proper insurance coverage.
What Types of Vehicles Are Considered Fleet?
A vehicle is considered a fleet vehicle for insurance purposes if a business owns a set number (generally around five or more) of vehicles for work purposes. These may include buses, trucks, vans, staff cars, rental cars and more.
Each vehicle in the fleet may require different insurance coverage, which can be adjusted under the umbrella of one fleet policy.
What Does Commercial Fleet Insurance Cover?
Like regular auto insurance, commercial fleet insurance covers damage to your vehicle, liability in an accident, medical payments for injuries, uninsured motorist hits, and more. Policies can also be extended to cover custom parts or equipment. Anything you have added for work that is not stock can be covered by your policy.
For trucks with landscaping or construction equipment built-in or refrigerated vehicles, customizing a commercial policy is the best option. Replacing these additional parts is well above the cost of commercial premiums, making it a safe bet.
Concerns for Small Businesses
As a small business with commercial vehicles, you may be concerned about the cost of fleet insurance. Luckily there are insurance options that can meet your needs and budget.
Seasonal adjustments are also possible. If you plow in the winter you can swap to commercial coverage on your truck at that time, and then lower your coverage during the warmer months when your truck is not being used for business. This can make it more affordable to have proper coverage on your cars.
Do I Really Need Commercial Insurance?
If a vehicle is used at all for business, it needs to be covered by commercial insurance. By nature of being used for work, vehicles face more risk. That is why insurance companies class them as “commercial” and charge different rates.
If you try to apply a personal rate to a vehicle that is used for a fleet and it is damaged while being used for work, you will likely face a denial of your claim. While it may be tempting to try to save a little on monthly premiums by using a personal policy, a denied claim will certainly wipe out any potential savings.
Work with R & R Property & Casualty Insurance Agency
If you are shopping around for the best commercial fleet insurance, work with R & R to get the best coverage for the best price. Don’t leave your business in the hands of fate with no insurance or underinsured policies.
At R&R, we are invested in making sure our clients are covered on all fronts. Reach out today at (760) 244-5684 to schedule a consultation to discuss your fleet policy.