Many businesses have a fleet of vehicles to support their operations, and they are essential to many industries and businesses. However, it is important to ensure that your fleet vehicles are insured. In an event of an emergency, your business won’t suffer much if it is insured. But do you need to insure every vehicle in your fleet?
Fleet insurance is auto insurance that covers all vehicles in a company’s fleet instead of each one. All over the globe, car accidents are common. In Canada for instance, there are more than 160.000 car accidents each year. Car repairs and replacements can be very costly, regardless of who is responsible. Fleet insurance gives company owners peace of mind by ensuring that their vehicles are covered.
What is fleet insurance?
Fleet insurance is designed to cover business vehicles. It can cover multiple vehicles leased or owned by a company and can be registered either in the company’s name, a partner, or a director. Deals can also be found through specialist brokers or insurance comparison websites. If your business owns several vehicles, make sure you contact an experienced broker to learn more about the requirements for insuring a fleet and decide which policy you need.
There are a few important fleet insurance coverage types. Third-party liability coverage is one of the most common coverages of fleet insurance. It provides protection if you or an employee is involved in an accident in a commercial vehicle that injures another person or results in property damage to someone else’s property.
Property damage coverage protects your commercial vehicle and its contents from the costs of property damage. It may cover the costs of replacing or repairing your vehicle if an employee causes an accident. It may also cover the towing of your vehicle, depending on how comprehensive the coverage is.
Accident benefits coverage is mandatory in some countries. Your fleet insurance provider may be able to pay for any legal or medical expenses if any of your employees, a passenger, or a pedestrian involved in a collision requires medical attention.
There are also uninsured automobile, collision, and comprehensive coverage.
Benefits of fleet insurance
Getting a discount
By offering fleet insurance, your business can save money from the beginning. You can get discounts based on how many vehicles you have—this is much cheaper than individually insuring each vehicle. The more vehicles your business operates, the higher the insurance discount.
A price comparison website can help you find the best deal for you. You can then compare all the available fleet insurance options and choose the one that suits your needs and budget.
More efficient administration
It is also a smart idea to keep all your vehicles under one policy. You can simplify some admin tasks. It’s much easier to call your insurance provider if you have an accident. It’s also much easier to renew and change policies if they are all covered under the same policy. A uniform fleet policy means less documentation, less follow-up, and more efficient administration.
Greater safety
Time is of the essence in an emergency situation like an accident. Your insurance policy must be able to quickly and without too much hassle help you and your employees with vehicle replacement expenses and other costs. You and your employees will be more secure if you have easier access to funds. This is why you, your business, and your employees can all benefit from a fleet insurance policy.
Driver turnover protection
Sometimes, a business may experience periods of high employee turnover. Fleet insurance is much more convenient in such situations because you don’t have to deal with the hassle of trying to figure out the policy for each driver who leaves or joins the team.
You can extend your policy to drivers who meet your conditions such as a driving record, without changing your insurance policy. You can reduce the cost of operating your business vehicles and save time by purchasing fleet insurance. So, fleet insurance is an essential part of future-proofing your business and vehicles.
Other benefits of fleet insurance
Affordability
Multiple policies can add up. You can use fleet insurance to increase your bargaining power and keep your premiums as low as possible, which will help you save money on insurance. You can often get better deals because your fleet is more valuable to an insurance company.
Flexibility
Insurance for fleet vehicles gives you complete control over how your drivers and vehicles are covered. You have the option to choose which vehicles and how they are covered, as well as drivers who will be able to access what vehicles.
Conclusion
Fleet insurance is an incredibly effective solution to guarantee the security of your business’s fleet vehicles. It is a great way to ensure that you are getting the best protection possible while managing risk in a cost-effective manner. Fleet insurance also helps alleviate some of the worry associated with driving expenses and valuable vehicles, and provides peace of mind knowing that all drivers and vehicles are properly covered. It is a convenient, cost-effective, comprehensive policy; designed to provide you with security at a budget-friendly price point.
