Fleet coverage

Fleet coverage is a commercial auto insurance policy that protects multiple business vehicles, such as vans and trucks, under a single contract. Businesses use fleet coverage to manage risks for cars and SUVs owned or leased by the company.

Insurers rate fleet policies based on factors like total vehicle count–often 5 or more units–vehicle types (e.g. delivery vans, sedans), and driver history. Fleet coverage usually includes liability protection for property damage and bodily injury claims, with minimums such as $1 million per occurrence being common in industries like logistics.

Policies offer optional add-ons such as physical damage, comprehensive, collision, medical payments, and uninsured motorist coverage tailored for fleets of taxis or utility trucks, according to a report from YourInsurance.info. Fleet coverage can extend to employee-driven vehicles during work hours if listed on the policy schedule.

Companies may lower premiums by implementing telematics systems and requiring regular driver safety training; according to NHTSA data, telematics adoption reduces crash rates by up to 20%. Policyholders update their covered vehicle schedules regularly because fleet composition changes due to purchases or disposals of box trucks or service vans.

Insurers often require maintenance logs and proof of regular inspections for vehicles included in fleet coverage to control claim costs. Claims are processed collectively for all insured vehicles, which simplifies administration versus managing individual policies for each vehicle.

Premium discounts are available for fleets with good loss histories or those operating low-risk vehicles, such as sedans used in professional services rather than heavy-duty trucks in construction.