Fleet Auto Insurance: Who and What is Included in This Auto Policy?

Transportation accidents accounted for 40% of workforce fatalities in 2018. Keep your drivers safe with fleet insurance. All fleet drivers must be covered by their company's auto insurance. Fleet insurance policies differ from standard auto insurance in a couple of ways. With fleet auto insurance, there is no personal owner of an automobile. The owner of all vehicles listed on a fleet auto insurance policy must be a company, whether it's a sole proprietorship or a corporation.

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Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insurance...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: Apr 14, 2021

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What You Should Know

  • A company must be listed as the owner of all vehicles on a fleet auto insurance policy, whether it’s a sole proprietorship or a corporation.
  • Fleet insurance may refer to a single company car or hundreds of cars, depending on the company.
  • Add-ons to auto insurance, like collision and comprehensive insurance policies, will vary.

If your company utilizes vehicles, you’re going to need commercial auto insurance. Fleet auto insurance is a policy that protects your company and your employees should an accident or other incidents occur involving a company vehicle.

Fleet insurance differs from standard auto insurance in a couple of ways, such as being exclusively offered to businesses.

Find out what policies look like in your area by typing your ZIP code into our tool above. Keep reading to learn more about fleet policies.

What is Fleet Vehicle Insurance?

According to Merriam-Webster.com, the fleet insurance definition is “insurance by which a number of ships, automobiles, or airplanes are covered under one contract.”

Fleet insurance, meaning commercial vehicle insurance that covers multiple vehicles and drivers, is required to protect your business and employees.

For example, you would need fleet insurance for a car rental company.

Companies are expected to provide a safe work environment for employees. When a company owns or leases vehicles, regardless of how many, commercial fleet auto insurance is required to adequately protect the vehicles and drivers.

Is fleet insurance expensive? If so, how can I save money on vehicle fleet insurance? Though the cost of your commercial auto insurance will depend on what types of vehicles you have in your fleet, we can take a look at general auto insurance rates for fleet cars.

Average Annual Cost of Fleet Car Insurance
Vehicle TypeAverage Annual Auto Insurance Rates per Vehicle
Sedans and SUVs$1,000/year per car
Trucks$1,500/year per car
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Many company vehicles like large trucks or multiple-passenger vehicles require special licenses to operate, and your insurance company needs to know that your drivers are adequately licensed before they get behind the wheel.

Make sure to update your fleet auto insurance every time you have a driver change at your company. If you don’t, your claims may be denied — or worse. Read our article reasons why your auto insurance claim might be denied to learn more.

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Can Anyone Drive with Fleet Insurance?

No, drivers must be listed in the company commercial auto policy.

There’s never a good time for an accident, but timing is especially bad when the driver of your company vehicle isn’t covered by insurance. It’s crucial that you ensure that every one of your company drivers is listed on your auto insurance.

If you have employees driving that aren’t listed on your fleet policy, your insurance company may think that you’re trying to defraud them, and you could end up having to deal with all sorts of additional problems on top of the employee’s accident.

What is Included in Fleet Coverage?

Fleet auto insurance covers vehicles, drivers, and those that they affect in the course of a crash or other accident.

A commercial auto policy may also cover construction vehicles. Company materials such as tools, products, and other items that are in the vehicle during the accident will not be covered by fleet auto insurance.

While your personal comprehensive auto insurance policy may cover personal items of value, fleet auto insurance generally does not.

If your company vehicles are loaded with expensive equipment or other valuable items during the business day, you can purchase auto liability insurance coverage that will provide adequate coverage in the event of damage, theft, or other loss.

Speak with your insurance agent to determine exactly which policy you’ll need to cover everything in your company vehicles that isn’t covered by your fleet auto insurance.

What are the Cost Factors?

The best way to save when you buy fleet insurance is to hire drivers that have a safe driving record. Find out what affordable fleet insurance rates are available in your area by entering your ZIP code into our free comparison tool.

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Safe Drivers

A single driver with a poor history can increase insurance costs by more than 10%. When multiplied across your entire fleet of company vehicles, this amount can be significant. It’s good to train drivers to reduce risk to your business vehicles.

According to the Bureau of Labor Statistics, about 40% of all work-related fatalities are a consequence of accidents. Published in a 2019 report, the BLS found that professional drivers had the most fatalities in any occupation group with 966 in 2018.

Purchasing fleet auto insurance from the same insurance company that holds your company’s general liability and other small business insurance policies can provide some excellent savings.

Call your fleet insurance company and ask if they offer any discounts for bundling multiple policies together.

Other Quick Tips

Check and see if your fleet auto insurance provider offers discounts for having GPS devices installed in your vehicles.

Not only is this a relatively inexpensive way to earn a discount, but it can also help you keep tabs on your company vehicles and will ensure that any stolen vehicles are recovered quickly.

There are many inexpensive fleet GPS tracking providers available. Once you get the go-ahead from your auto insurance company, do some research and get your fleet tracking set up.

How Can I Make the Policy Work for my Company?

Policyholders should be in regular communication with the insurance company for the best results.

Try assigning a member of your team to be the point-of-contact for your company. By keeping your insurance company in the loop, you’ll earn their trust and you’ll keep the protection afforded by your insurance at the highest level.

Try not to skimp or aim for the cheapest policy. Remember: You’re covering your company’s employees and your own assets.

By shopping around for fleet insurance quotes and utilizing the tips above, you’ll be able to purchase effective levels of coverage at a price that’s right for your business and your budget.

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Frequently Asked Questions: Fleet Insurance

#1 – How much does fleet insurance cost?

The fleet insurance company calculates risk partly based on who is driving the vehicles, so they need to know this information to accurately calculate how much your commercial fleet insurance cost will be.

#2 – What companies offer fleet insurance?

Most big-name companies offer this type of insurance. For example, Allstate, Esurance, and Liberty Mutual all have policy options with A-ratings from A.M. Best.

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#3 – Can families purchase fleet policies?

No, these policies are only for businesses. Fleet insurance for personal cars is not an option for families.

#4 – How do I file a fleet insurance claim?

Fleet insurance clais should be filed with your insurance company immediately after an accident. 

However, if you are unable to do so, each state has a minimum waiting period of at least one year after the accident to file a claim (in some cases up to six years).

Call the fleet insurance phone number on your policy as soon as posslible after an accident.

#5 – What are some tips for maintaining a safe fleet of vehicles?

Follow state regulations, select qualified drivers, provide adequate training, and have your drivers perform routine inspections.

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#6 – What is SR-50 insurance?

This is used as proof of auto insurance for high-risk drivers in Indiana.

#7 – Where can I get fleet insurance quotes?

Enter your ZIP code to compare options in your area.

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