Fleet insurance for your company vehicles
Fleet insurance is a type of policy that covers vehicles that are used for business purposes. The type of vehicles covered can include company vans and cars, delivery trucks, limousines, and semi-tractors/trailers. These vehicles are only covered for the purposes related to your business. For example, if your employee drives to and from the job in one of your fleet vehicles, he or she is covered under your fleet insurance policy. However, if your employee is involved in an accident on personal time, his or her personal car insurance policy would have to be applied.
You should consider insurance for a fleet of vehicles if your business owns two or more that are used for businesses purposes because your liability increases in proportion to the amount of vehicles owned and operated by your business.
There are different levels of fleet insurance coverage — third party liability, collision, and comprehensive plus a number of optional coverages from which you can choose.
When should you start to consider purchasing commercial insurance policies for your business vehicles? There are several factors to take into consideration including:
- Type of vehicle
- Value of vehicles
- Number of vehicles and employee drivers
- Distance/radius of travel
- Coverage types and limits
- Type of cargo
- Credit history
- Loss history
While personal car insurance policies can sometimes provide enough coverage if your business is small, if your business is using a vehicle as part of its day to day operations, you need to consider a commercial insurance policy to protect you and your business from any financial fallout from insurance claims for which your company may be held liable.
Insurance policies for an entire fleet of vehicles typically provide you with higher limits of coverage and may also offer coverage for rented vehicles. They may even have options that cover a non-owned car such as when one of your employees uses his or her car for the purpose of conducting business.
Working with a broker
Before you make a decision on a fleet insurance policy, you’ll want to do your homework about the different types of coverage in case of accidents, the costs and limits, possible discounts, policy bundling, customized packages, etc. In addition, you’ll want to get multiple quotes to ensure that you’re getting the best policy for your business needs.
If you don’t want the hassle or have the time to put into all of the necessary research, your best option is to work with an insurance broker that understands the specific needs of your business. Daniel Fraisse, the best Los Angeles insurance broker, has more than 30 years of experience working with many of the major insurance carriers that provide commercial vehicle insurance.
Working with Dan can save you a lot of time and money when it comes to planning for the type of coverage you’re going to need for you commercial fleet. Call or click on our website.