Buying Fleet Auto Insurance: What You Need To Know in 2024
Fleet insurance is recommended for any business with two or more cars that need auto insurance coverage. On average, you can pay between $50 and $200 per vehicle under a fleet auto insurance policy. You can save hundreds of dollars per year on fleet car insurance if each driver has a clean driving record.
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Jimmy McMillan
Licensed Insurance Agent
Jimmy McMillan is an entrepreneur and the founder of HeartLifeInsurance.com, an independent insurance brokerage. His company specializes in insurance for people with heart problems. He knows personally how difficult it is to secure health and life insurance after a heart attack. Jimmy is a licensed insurance agent from coast to coast who has been featured on ValientCEO and the podcast Modern Li...
Licensed Insurance Agent
UPDATED: Mar 8, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our auto insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different auto insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Mar 8, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our auto insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different auto insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Fleet insurance provides auto insurance coverage for multiple vehicles
- Semi-trucks are the most expensive vehicles to insure
- Progressive and Travelers have the highest market share for fleet insurance
Read more: How to Manage Your Auto Insurance Policy
What is fleet insurance?
Fleet insurance provides coverage for multiple cars under one policy. Also, fleet insurance is usually designed for businesses with three vehicles or more to insure. In other words, fleet insurance is another way of saying commercial car insurance for multiple motor vehicles at a business or organization. For example, a cleaning service with multiple vans and trucks should get fleet insurance. Fleet insurance works the same as personal auto insurance, but the insurance company covers various vehicles under one policy under specific rates. Most fleet insurance policies are for commercial businesses. Therefore, you won’t see fleet insurance for private use.
What is small fleet auto insurance?
Small fleet insurance covers two cars or more. A small fleet car insurance policy insures two to five vehicles.
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What are the fleet insurance requirements?
Fleet auto insurance requirements vary by state. The most common limits for bodily injury are at least $100,000 for bodily injury of one person and $500,000 for bodily injury of multiple people per accident. Required property damage limits are as low as $50,000 per incident. However, fleet car insurance companies may recommend higher coverage amounts. For instance, fleet insurance companies may recommend more on your coverage limits if you travel or are based in areas known for a higher frequency of fleet insurance claims.
Which coverages are available under fleet insurance?
Fleet car insurance covers bodily injury (BI) liability, property damage (PD) liability, and combined single limit (CSL) liability.
Basic fleet insurance coverage is like liability insurance for personal cars. CSL liability combines BI and PD in one limit if a claim is made for both coverages. But liability insurance coverages don’t compensate you when you’re at fault in an accident. As a result, fleet insurance companies insist that you add property damage coverages like collision and comprehensive insurance. Uninsured motorist coverage also provides help in complicated situations where one of your vehicles is damaged by a hit-and-run driver.
How much is fleet insurance?
Fleet insurance rates vary for each company. If you want affordable fleet insurance, you’ll need to shop with various insurance companies until you find a commercial insurance policy that works for you. Quotes for fleet insurance are usually not publicized. However, we researched the average fleet insurance rates and narrowed them down to vehicle type. Here’s what we found: Average Monthly Commercial Auto Insurance Rates
| Car Type | Min. Monthly Cost Commercial Auto Insurance | Max Monthly Cost Commercial Auto Insurance |
|---|---|---|
| Car | $50 | $200 |
| Semi | $667 | $1,042 |
| Cargo/Delivery Van | $275 | $517 |
| Limo | $333 | $500 |
| Cab | $417 | $833 |
The cheapest vehicle type to insure is a car. Cars are usually sedans, hatchbacks, vans, and some compact SUVs. Bigger vehicles, such as cargo vans, multi-seater vans, and semi-trucks cost more to insure. Your fleet auto insurance rates also increase when you customize your policy. The more coverage you need, the more you’ll pay for insurance.
How are fleet auto insurance quotes determined?
You’ll need to get a quote from an insurance company before a fleet insurance policy is available to you. But what factors determine fleet insurance? Let’s look at the main characteristics:
- The number of vehicles in your fleet
- Purpose of vehicles
- The age of your cars
- Condition of your vehicles
- The location of the cars
- Properly licensed drivers
Fleet insurance companies also look at the estimated miles you and your drivers will travel using covered cars. Higher-than-average mileage means more expensive rates.
How do I save money on fleet auto insurance?
Your business needs to qualify for multiple commercial auto insurance discounts to save money on fleet insurance. Since you’ll have multiple drivers, a commercial car insurance company inspects the risk profile of your business.
Read more: How To Insure Two Cars for One Driver
If your business is new, your fleet insurance rates may be higher than average. However, monthly fleet insurance rates may decrease if your vehicles have cameras, safety features, and anti-theft features. Businesses that hire drivers with clean driving records can also receive a fleet insurance bargain for promoting high safety standards.
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What are the best fleet insurance companies in America?
Locating the perfect fleet insurance policy for your business is complicated. Therefore, it’s best to start with the top companies that provide fleet car insurance. Let’s examine the top fleet insurance companies in America: Top Commercial Auto Insurance Companies by Market Share and Direct Premiums Written
| Company | Direct Premiums Written | Market Share |
|---|---|---|
| Progressive | $4.4 Billion | 10.90% |
| Travelers | $2.6 Billion | 6.30% |
| Liberty Mutual | $1.8 Billion | 4.40% |
| Nationwide | $1.6 Billion | 4% |
| Berkshire Hathaway | $1.5 Billion | 3.70% |
| Old Republic | $1.4 BIllion | 3.60% |
| Zurich Insurance | $1.4 Billion | 3.40% |
| Auto-Owners | $994.9 Million | 2.50% |
| Tokio Marine Group | $761.7 Million | 1.90% |
| Chubb Ltd | $740.7 Million | 1.80% |
Progressive, Travelers, and Liberty Mutual are also in the top 10 companies for personal auto insurance. Berkshire Hathaway has connections to Geico auto insurance. Since fleet auto insurance rates are mostly private, you’ll have to get a quote for an accurate estimate.
What are the pros and cons of fleet auto insurance?
Fleet insurance is essential for any business that requires several vehicles. But there are some drawbacks to fleet car insurance. Here’s a breakdown of the pros and cons of fleet insurance: Advantages and Disadvantages of Commercial Auto Insurance
| Advantages to Commercial Auto Insurance | Disadvantages to Commercial Auto Insurance |
|---|---|
| Extra comprehensive/collision coverage is available for full protection at an added cost | Claim payout may be slow if you are working with the wrong insurance company, but this applies to all insurance coverage types |
| Extra liability insurance is available for an added cost | May come with a per-accident dollar amount cap or limit |
| Meets insurance requirements for a fleet of company vehicles | May have policy limitations/ exclusions for high-risk businesses |
| Meets state minimum commercial liability requirements to drive legally | May only provide partial coverage for losses in a catastrophic disaster or major lawsuit |
| Provides coverage in areas where personal car insurance lapses | |
| Provides protection for employees that drive on-the-job |
Fleet insurance has more advantages than pitfalls. A commercial business with uninsured or underinsured cars can cause a financial disaster. It’s highly recommended and required for businesses to have commercial insurance.
Fleet Insurance: The Bottom Line
Fleet insurance is necessary for any business, nonprofit, or government organization with two or more cars. BI, PD, and CSL liability are basic auto insurance coverages for fleet insurance. Adding property damage options like collision and comprehensive coverage further protects your investment. Ultimately, you can save money on fleet auto insurance by hiring good drivers and reducing car accidents to a minimum. Before you buy fleet insurance, use our free quote tool below to compare multiple insurance companies near you.
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Frequently Asked Questions
What is fleet auto insurance?
Fleet auto insurance is a type of insurance coverage designed for businesses or organizations that own or operate a fleet of vehicles. It provides comprehensive coverage for multiple vehicles under a single policy, simplifying insurance management for businesses with large vehicle fleets.
Who needs fleet auto insurance?
Fleet auto insurance is essential for businesses or organizations that own or operate a fleet of vehicles. This can include companies with delivery vehicles, service vehicles, rental car fleets, or any other business that relies on multiple vehicles for daily operations.
What are the advantages of Buying Fleet Auto Insurance?
There are several advantages to Buying Fleet Auto Insurance:
- Cost savings: Fleet auto insurance typically offers cost savings compared to insuring each vehicle individually. Insurance providers often offer discounted rates for fleet policies due to the higher volume of vehicles insured.
- Simplified management: Having a single policy for multiple vehicles simplifies insurance management for businesses. It reduces paperwork, administrative tasks, and the need to track multiple individual policies.
- Flexible coverage: Fleet insurance policies can be customized to meet the specific needs of the business. It allows for different coverage options and limits for different types of vehicles within the fleet.
- Streamlined claims process: With fleet auto insurance, the claims process is streamlined since all vehicles are covered under one policy. This makes it easier to manage and resolve claims in a timely manner.
How can I buy fleet auto insurance?
To buy fleet auto insurance, you can follow these steps:
- Assess your fleet’s needs: Determine the number and types of vehicles in your fleet, along with the desired coverage options. Consider factors such as liability coverage, comprehensive coverage, collision coverage, and any additional coverage needs specific to your business.
- Research insurance providers: Look for insurance providers that specialize in fleet auto insurance or have experience working with businesses with similar vehicle fleets. Consider their reputation, financial stability, and customer reviews.
- Obtain multiple quotes: Contact different insurance providers and request quotes for fleet auto insurance. Provide them with accurate information about your fleet to ensure accurate quotes.
- Compare coverage and cost: Review the coverage details, deductibles, limits, and any additional features offered by each insurance provider. Consider the cost of premiums and any potential discounts available.
- Consult with an insurance agent: Engage in conversations with insurance agents or representatives from the companies you are considering. Discuss your specific needs and ask any questions you may have about the policy terms, claims process, or other relevant details.
- Finalize the purchase: Once you have chosen an insurance provider, provide the necessary information to complete the application process. Review the policy terms and conditions before signing the agreement.
Can I add or remove vehicles from my fleet auto insurance policy?
Yes, you can typically add or remove vehicles from your fleet auto insurance policy. Contact your insurance provider to inform them about any changes to your fleet. They will guide you through the process and provide you with the necessary forms or documentation to make the requested changes. Keep in mind that adding or removing vehicles may result in adjustments to your premium.
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Jimmy McMillan
Licensed Insurance Agent
Jimmy McMillan is an entrepreneur and the founder of HeartLifeInsurance.com, an independent insurance brokerage. His company specializes in insurance for people with heart problems. He knows personally how difficult it is to secure health and life insurance after a heart attack. Jimmy is a licensed insurance agent from coast to coast who has been featured on ValientCEO and the podcast Modern Li...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.