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The Complete Guide to Fleet Car Insurance

The Complete Guide to Fleet Car Insurance

For any business that requires multiple vehicles to keep business moving, fleet car insurance is necessary to cover all of the company’s cars.  Whether the fleet of cars is for deliveries or for use by company employees, fleet car insurance is the best way to cover all of the cars on the company lot in one policy.  Fleet car insurance is the most affordable method of covering a number of cars for a business and providing them with the correct type of coverage for the business use they require.

Obtaining a Fleet Car Insurance Policy

Obtaining a fleet car insurance policy can be a little complicated because there is a lot more involved than with a personal car insurance policy.  In your home, there are only a few drivers who might possibly get behind the wheel of your car.  When it comes to a company, the potential drivers list is quite a bit longer.  In order to obtain a fleet car insurance policy, you will have to provide driver information for everyone in the company who might have access to the vehicle or drive it for business purposes.  If any of the employees in the company have a poor driving record, this could affect your rates or even damage your chances of getting a fleet car insurance policy at all.  This means you will need to screen your employees carefully and ask for driving records on new hires.

Factors Impacting the Cost of Insurance

The more expensive the cars in your fleet, the higher your cost will be.  Thus a fleet of compact cars used to make deliveries will be less expensive to insure than a fleet of limousines and town cars, which are obviously much more valuable.  If you are purchasing a fleet of company cars for your employees, you should try to keep the value of the cars down if you want the fleet car insurance policy to be affordable.

Other factors that will affect the cost of your fleet car insurance policy include the number of miles the cars will be driven annually, where the cars will be driven, and of course how many cars you have.  All of these things can impact the cost of your fleet car insurance.  Cars that are driven long distances regularly will be more expensive than those that are driven less frequently.  

While fleet car insurance does need to meet all the legal minimums and also properly protect your company from the potential liability issues associated with the use of the cars, it does not need to be full coverage.  It is possible to carry a liability only policy that will protect your company but not pay anything out for the damage to the cars in your fleet if they are in an accident.  This can make your fleet car insurance policy a lot more affordable, but does place you at risk of losing out on the value of the vehicles themselves in case of an accident.  This is a decision best discussed with your insurance agent to ensure that you make the right choice to protect your company.

Shop Around

Finding the right balance between cost of the policy and the coverage that you need is one of the many complicated issues involved in choosing a fleet car insurance policy.  The best thing to do before you make a call is to obtain some quotes from a variety of companies.  If your business already has a different type of commercial insurance policy, the best place to start is with the same company that currently insures you, and because they already have a portion of the information on your company, the process of applying for the policy may be shortened.  Don’t assume they have the best rates, however.  It is always a good idea to shop around for fleet car insurance just as you would for any other insurance policy.

Fleet car insurance is a necessity for any business with more than one or two cars under the company name.  It protects the business from serious liability issues and potential lawsuits and also keeps your fleet of cars legal to drive on the road.  Take the time to learn how fleet car insurance works and make the decisions that will get you the right policy at the right price.

Photo courtesy of RambergMediaImages.

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