Compare Rates From Leading Companies
Save Up To 46% on Car Insurance
Enter Zip Code:

Fleet Insurance

Written by W. Lane Startin. Posted in Definitions Last Updated: 11/13/2010

Who needs fleet insurance, what it covers , how to make sure the right people are on the policy and what it doesn’t cover.

Commercial auto fleet

Your fleet doesn't have to be this big.

You may need fleet insurance even if your “fleet” consists of only one vehicle. More than anything insurance companies place emphasis on how a vehicle is used. Insuring the wrong vehicle for the wrong purpose can result in claim denial.

If you use your car for personal use (which includes driving to and from work, but not use for work-related activities), then you need a standard personal auto insurance policy.

Insure Your Fleet Right

Vehicles specifically used for work purposes should be placed on fleet or commercial auto insurance policies. The vehicle doesn’t have to be a large truck, a service van or any other vehicle specifically designed for commercial use.

It can theoretically be any vehicle. Indeed since he or she uses it to travel to and from appointments, chances are your insurance agent’s own vehicle is covered by a commercial auto policy.

Fleet insurance legal requirements are for the most part the same as for personal auto insurance, however there are exceptions. For example, some states require significantly higher liability limits on taxicabs than on other vehicles. There may also be different rules for commercial concerns that take their vehicles across state lines. Consult with your insurance agent for more information.

Liability insurance on trailers isn’t required because trailers aren’t self-propelling. Instead, the liability coverage on the vehicle towing the trailer typically covers the trailer too. However, trailers must have any comprehensive and collision coverage written separately from other vehicles. In a commercial setting trailers are typically insured on a stated value basis. This is particularly true of older trailers or more simply constructed trailers such as flatbeds.

List Your Drivers in the Fleet

Personal auto insurance policies list drivers, but these policies commonly extend coverage to other occasional drivers without you having to think about it. This isn’t the case with fleet insurance policies. If a driver isn’t listed, there’s no coverage in a claim. Therefore it’s extremely important to make sure your fleet driver lists are kept up-to-date.

On commercial fleet auto insurance policies drivers are typically either accepted or rejected without a whole lot of underwriting. While exact rules vary from company to company for the most part your drivers need to be over 25, properly licensed to drive the vehicle in question and have decent driving records. A ticket or two is usually not a problem, but a particularly poor driving record can disqualify a driver.

Most commercial insurance companies will not accept a driver under 25 on a fleet policy, regardless of record. Drivers over 74 may be categorically rejected as well.

The Vehicle is Only Part of Fleet Coverage

Remember fleet auto insurance only covers vehicles. It generally does not cover tools, equipment, aftermarket accessories or anything else not factory installed and permanently bolted down. Your valuable tools and equipment need to be covered separately from perils such as theft and vandalism.

This is accomplished by another line of commercial property or casualty insurance called “inland marine” insurance. Like trailers, tools and equipment are typically on a stated value basis. In addition to stated value, underwriters will typically want information such as a short description, year of manufacture and any serial numbers to cover tools and equipment.

Fleet auto insurance also does not cover damages caused by you or your employees. Instead, this is addressed by commercial general liability or GL insurance. While not all commercial concerns need GL, many contractors and clients, particularly in construction-related fields, require proof of a GL policy called a “binder” before they will hire you or your company. Your insurance agent can help you find the correct coverages you need to protect yourself on the job.

Tags:

Trackback from your site.

W. Lane Startin

Lane is a former insurance agent with two well-known and highly rated companies. He left the world of insurance sales to return to his first love, writing. He enjoys helping people unravel the intricacies of insurance without the bias created by working for commission. He's a graduate of Idaho State University and by extension a long-suffering Bengals fan. Lane blogs at Car Insurance Guidebook.

Reviews (32)

  • 4 Things You Need To Know About Fleet Insurance | Truck Auction .CO

    |

    Overall Rating Not Rated
    Price Not Rated
    Service Not Rated
    Claims Not Rated

    […] Clay was an agent for over 20 years. He now blogs with you in mind! You can find fleet insurance at Car Insurance Guidebook. Check out reviews, or grab a full coverage car insurance quote in 5 […]

    Reply

  • Why Your Company Needs Fleet Insurance - car insurance rates

    |

    Overall Rating Not Rated
    Price Not Rated
    Service Not Rated
    Claims Not Rated

    […] business in the US. He now researches and blogs about car insurance coverage. He helps find fleet insurance at Vehicle Insurance Guidebook.Check out the most recent reviews, or grab a full coverage auto […]

    Reply

  • 4 Things You Need To Know About Fleet Insurance

    |

    Overall Rating Not Rated
    Price Not Rated
    Service Not Rated
    Claims Not Rated

    […] Clay was an agent for over 20 years. He now blogs with you in mind! You can find fleet insurance at Car Insurance Guidebook. Check out reviews, or grab a full coverage car insurance quote in 5 […]

    Reply

  • Does Your Business Need Fleet Insurance? | Bank On It Finances

    |

    Overall Rating Not Rated
    Price Not Rated
    Service Not Rated
    Claims Not Rated

    […] largest insurance company in the U.S. He is consumer-focused and researches issues for you such as fleet insurance. He can help you find out about fleet insurance, show you rates by state, or get you a few car […]

    Reply

  • Is Fleet Insurance What You Really Need? | Magic Money Clip

    |

    Overall Rating Not Rated
    Price Not Rated
    Service Not Rated
    Claims Not Rated

    […] agent for the largest insurance company in the US. He now researches and blogs about issues such as fleet insurance with the consumer in mind. Find out if fleet insurance is what you really need, get rates by state, […]

    Reply

  • Does Your Business Need Fleet Insurance? | The Board Magazine

    |

    Overall Rating Not Rated
    Price Not Rated
    Service Not Rated
    Claims Not Rated

    […] largest insurance company in the U.S. He is consumer-focused and researches issues for you such as fleet insurance. He can help you find out about fleet insurance, show you rates by state, or get you a few car […]

    Reply

  • Does Your Business Need Fleet Insurance? | Finance Investment Articles

    |

    Overall Rating Not Rated
    Price Not Rated
    Service Not Rated
    Claims Not Rated

    […] as an agent for the largest insurance company in the U.S. He now researches on issues such as fleet insurance. Find out if fleet insurance is what you really need, get rates by state, or grab a few auto […]

    Reply

  • Is Fleet Insurance What You Really Need? | Bigger Bank Account

    |

    Overall Rating Not Rated
    Price Not Rated
    Service Not Rated
    Claims Not Rated

    […] agent for the largest insurance company in the US. He now researches and blogs about issues such as fleet insurance with the consumer in mind. Find out if fleet insurance is what you really need, get rates by state, […]

    Reply

  • Does Your Business Need Fleet Insurance? | Money Matters Update

    |

    Overall Rating Not Rated
    Price Not Rated
    Service Not Rated
    Claims Not Rated

    […] agent for the largest insurance company in the US. He now researches and blogs about issues such as fleet insurance with the consumer in mind. Find out if fleet insurance is what you really need, get rates by state, […]

    Reply

  • Do You Need Fleet Insurance? | Go For It Finances

    |

    Overall Rating Not Rated
    Price Not Rated
    Service Not Rated
    Claims Not Rated

    […] agent for the largest insurance company in the US. He now researches and blogs about issues such as fleet insurance with the consumer in mind. Find out if fleet insurance is what you really need, get rates by state, […]

    Reply

  • Florida|Does Your Business Need Fleet Insurance?

    |

    Overall Rating Not Rated
    Price Not Rated
    Service Not Rated
    Claims Not Rated

    […] as an agent for the largest insurance company in the U.S. He now researches on issues such as fleet insurance. Find out if fleet insurance is what you really need, get rates by state, or grab a few auto […]

    Reply

  • Do You Need Insurance to Cover Your Fleet? | Just Their Thoughts

    |

    Overall Rating Not Rated
    Price Not Rated
    Service Not Rated
    Claims Not Rated

    […] agent for the largest insurance company in the US. He now researches and blogs about issues such as fleet insurance with the consumer in mind. Find out if fleet insurance is what you really need, get rates by state, […]

    Reply

  • Do You Need Fleet Insurance? | Earn More Money Tips

    |

    Overall Rating Not Rated
    Price Not Rated
    Service Not Rated
    Claims Not Rated

    […] agent for the largest insurance company in the US. He now researches and blogs about issues such as fleet insurance with the consumer in mind. Find out if fleet insurance is what you really need, get rates by state, […]

    Reply

  • Do You Need Insurance to Cover Your Fleet? | Valuable Insurance Guide

    |

    Overall Rating Not Rated
    Price Not Rated
    Service Not Rated
    Claims Not Rated

    […] as an agent for the largest insurance company in the U.S. He now researches on issues such as fleet insurance. Find out if fleet insurance is what you really need, get rates by state, or grab a few auto […]

    Reply

  • Fleet Insurance May Be What You Need | Piggy Bank Finances

    |

    Overall Rating Not Rated
    Price Not Rated
    Service Not Rated
    Claims Not Rated

    […] as an agent for the largest insurance company in the U.S. He now researches on issues such as fleet insurance. Find out if fleet insurance is what you really need, get rates by state, or grab a few auto […]

    Reply

  • Internet Articles Database » Does Your Business Need Fleet Insurance?

    |

    Overall Rating Not Rated
    Price Not Rated
    Service Not Rated
    Claims Not Rated

    […] as an agent for the largest insurance company in the U.S. He now researches on issues such as fleet insurance. Find out if fleet insurance is what you really need, get rates by state, or grab a few auto […]

    Reply

  • Why Your Company Needs Fleet Insurance - best auto insurance companies

    |

    Overall Rating Not Rated
    Price Not Rated
    Service Not Rated
    Claims Not Rated

    […] insurance firm in the US. He now researches and blogs about car insurance coverage. He helps locate fleet insurance at Automobile Insurance Guidebook.Check out the latest reviews, or grab a full coverage auto […]

    Reply

  • 4 Things You Need To Know About Fleet Insurance | Insurance Reference

    |

    Overall Rating Not Rated
    Price Not Rated
    Service Not Rated
    Claims Not Rated

    […] Clay was an agent for over 20 years. He now blogs with you in mind! You can find fleet insurance at Car Insurance Guidebook. Check out reviews, or grab a full coverage car insurance quote in 5 […]

    Reply

  • 4 Things Your Corporation Doesn’t Know About Commercial Insurance

    |

    Overall Rating Not Rated
    Price Not Rated
    Service Not Rated
    Claims Not Rated

    […] Clay was an agent for over 20 years. He now blogs with you in mind! You can find fleet insurance at Car Insurance Guidebook. Check out reviews, or grab a full coverage car insurance quote in 5 […]

    Reply

  • Why Your Company Needs Fleet Insurance | The Best Auto Insurance

    |

    Overall Rating Not Rated
    Price Not Rated
    Service Not Rated
    Claims Not Rated

    […] business in the US. He now researches and blogs about car insurance protection. He will help find fleet insurance at Automobile Insurance Guidebook.Examine out the most recent evaluations, or grab a total coverage […]

    Reply

  • Why Your Company Needs Fleet Insurance | Commercial Insurance Brookers

    |

    Overall Rating Not Rated
    Price Not Rated
    Service Not Rated
    Claims Not Rated

    […] company in the United States. He now conducts research and blog about car insurance. It will help, Fleet Insurance for car insurance Guidebook.Check the latest reviews, or take a comprehensive look at auto […]

    Reply

  • Why Your Business May Need Fleet Insurance | The Board Magazine

    |

    Overall Rating Not Rated
    Price Not Rated
    Service Not Rated
    Claims Not Rated

    […] company in the US. He now researches and blogs about car insurance coverage. He helps find fleet insurance at Car Insurance Guidebook.Check out the latest reviews, or grab a full coverage auto insurance […]

    Reply

Leave a comment

Overall Rating
Price
Service
Claims