Why Should Business Owners Buy Fleet Insurance?


Businesses can stay mobile and active only when they have functioning vehicles that are insured. A business owner having multiple vehicles can enjoy bliss only when all the vehicles are insured and that also not individually, but collectively. How?

The solution is fleet insurance. Yes, the term is self-explanatory which refers to the army of vehicles at the disposal of the business owner. These vehicles are insured partially or wholly depending on the package. The insurance is not available for personal usage but is only applicable for commercial purposes.

Fleet insurance covers all the vehicles collectively under one policy as long as they all belong to one specific organization. Business owners with two or more vehicles can apply for this insurance and this can go up to five hundred vehicles (for large businesses).

The payments can be made every month or there can be yearly provisions. Brokers, websites, and insurance providers can give fleet insurance quote to choose from according to the needs. As the insurance is granted on a one ‘Any Authorized Driver’ basis, the track record of the driver is significant. Risks increase when tainted drivers are found to be driving vehicles from the fleet. Therefore, premiums can also see a significant rise with the peak in risks.

The three different levels of fleet insurance include-

  1. Third-party only policy provides for losses suffered by someone else due to the insured vehicle.
  2. Third-party, fire and theft policy covers third-party problems as well as robbery attempts and fire outbreaks suffered by the insured vehicle.
  3. Comprehensive policy is all-inclusive and the most expensive of them all because the coverage it gives makes up for the premium price. It cares for both third party and business owner’s vehicle.

More or less this is the set pattern for most insurance providers. Before zeroing down, go through the terms and conditions thoroughly. An interesting feature is you can assign drivers while taking the fleet insurance or assign random drivers to any vehicle. The ‘Named Driver’ policy generally indicates the perfect track record of the driver thereby decreasing the premiums. However, the ‘Any Driver’ policy leaves room for high risk and uncertainty as the vehicle will be on-road and prone to accidents now and then. The premium, in this case, is higher.

Having fleet insurance removes a burden from your shoulder regarding payments and renewals. A single policy covering it all makes it highly convenient. Business owners should try and maintain their vehicles. Vehicles in good shape have lower premiums. High-risk businesses like courier services have high risk as there is a factor of speedy delivery. This coupled with traffic jams and valuables in vehicles make the premiums not so cheap.

Hassle-free and comparatively cheap fleet insurance is ideal for businesses. Flexibly being able to choose which vehicle to add to the fleet is a big boon. Keep vehicles securely and if possible, fit black box devices to keep a check constantly. The process is a bit complex so have a proper understanding of this from an established broker.