During these challenging economic times, small business owners constantly look for ways to cut overhead costs. If the business owns and uses more than four vehicles, the cost of fleet coverage tends to be less expensive than purchasing individual policies for each vehicle. Additionally, by having all the company's vehicles covered by one policy, there is less administrate time and cost consumed by managing the premium payments and insurance policy.
Types of Fleet Coverage Available
Comprehensive and Collision Insurance: Similar to standard single vehicle personal car insurance policies, fleet comprehensive and collision insurance covers damage to the coverage to the insured vehicle in the event of an accident, vandalism, weather or theft. Most finance companies require this type of insurance for vehicles for which they have provided financing and specify the minimum limits of liability coverage required for the policy. Some of these policies also cover medical expenses for the driver and passengers in the event they are injured in an accident while in the covered vehicle.
Some insurance companies offer roadside assistance riders in the event the covered vehicle has a breakdown while in use. It is important to determine if this type is need because many times the warranty on new cars, trucks, and vans provides this coverage. Additionally, some policy riders are available to provide a temporary replacement vehicle in the event a covered vehicle is out of service due to an accident or mechanical breakdown.
Liability Only Coverage: Liability only coverage, mandated in every state, covers damage to another vehicle and the medical expenses of the passengers in the vehicle in the event that the driver of the covered vehicle is found to be at fault in an accident. It is important to check to see what the minimum limits of liability coverage are required by the state.
Considerations for Fleet Coverage Insurance
When looking to purchase fleet insurance, it is important to check the reputation of the insurance agent from which the coverage is purchased. Other areas to investigate are the amount of time the insurer has been in business and their customer service policies. Many discount insurance companies offer extremely low rates, but are nowhere to be found in the event a claim is filed. If the cost of the policy is an issue, it is much better to go with a fleet insurance coverage company with a higher rate and then take advantage of the available discounts.
Many insurance companies offer discounts for alarm systems, housing the vehicles in a garage overnight and for continuing driver safety education. Additionally, it is important to check driving records of those who are going to drive the vehicles to ensure the drivers do not have multiple tickets and accidents on their record as these incidents on the person's Department of Motor Vehicle Records will result in higher premiums. Limiting the number of people who are driving the insured vehicles will also help to keep premiums lower.
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