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Commercial and long-distance auto insurance
Whether you need to cover your service vehicle fleet, a delivery vehicle, or insure vehicles entrusted to you, we have several solutions to offer. Construction contractors, garage owners, or any business looking to cover these types of vehicles, contact us!
What is vehicle fleet insurance?
Do you own a business with several vehicles? If so, you have probably already heard of vehicle fleet insurance. This insurance is often offered by damage insurance brokers and allows you to group all of your vehicle insurance into a single contract. In this article, we will explain what vehicle fleet insurance is and why it can be advantageous for your business.
Vehicle fleet insurance is an insurance policy that covers all of a business’s vehicles under a single contract. This can include cars, trucks, vans, utility vehicles, motorcycles, and more. In general, vehicle fleet insurance is more financially advantageous than taking out insurance for each vehicle individually. It also simplifies insurance management and reduces administrative costs.
How does vehicle fleet insurance work?
Vehicle fleet insurance is often offered by damage insurance brokers. The broker will assess your business’s needs in terms of auto insurance and propose a tailored contract that meets those needs. The business’s vehicles will then be added to the contract and insurance premiums will be calculated based on the number of vehicles, their value, their use, and so on.
Why take out vehicle fleet insurance?
There are several advantages to taking out vehicle fleet insurance for your business:
- Cost savings: Vehicle fleet insurance can be less expensive than taking out individual insurance for each vehicle.
- Simplified insurance management: A single insurance contract for all vehicles makes management easier and reduces administrative costs.
- Personalized coverage: The insurance broker can customize the coverage according to your business’s needs.
- Reduced risk: Vehicle fleet insurance can offer better protection against the risks associated with the use of multiple vehicles by a business.
The damage insurance broker for fleets
Vehicle fleet insurance can be advantageous for businesses that own several vehicles. It allows you to group all insurance under a single contract, which can reduce costs and simplify insurance management. If you are interested in vehicle fleet insurance for your business, do not hesitate to contact a damage insurance broker to learn more about the options available to you.
Insuring a vehicle fleet: a complete guide
Managing a utility vehicle fleet comes with its share of challenges, and underestimating the importance of adequate insurance can be a costly mistake. Discover the essential steps to insure a vehicle fleet effectively and strategically:
Assessing the specific needs of the commercial fleet
Every commercial vehicle fleet is unique, with specific insurance needs. The initial step is to carefully assess the characteristics of your fleet, including the number of vehicles, the types of vehicles, the intended use, and the potential risks associated with your activities.
Choosing between individual insurance and a fleet policy
You can choose to insure each vehicle individually or opt for a fleet insurance policy. Each option has its advantages and disadvantages, and the choice largely depends on the size of your fleet, the variety of vehicles and your specific coverage needs.
Comprehensive coverage for all possible risks
A utility vehicle fleet can be exposed to a variety of risks, such as road accidents, theft, property damage, and other unforeseen incidents. Make sure to obtain comprehensive coverage that addresses all possible risks to guarantee optimal protection for your fleet.
Consideration of legal and regulatory requirements
Each region may have specific legal and regulatory requirements regarding commercial fleet insurance. Make sure you understand these requirements and comply with all rules and regulations in force in the areas where your fleet operates.
Driver training to reduce risks
The safety of vehicle drivers is a key element of fleet management. Some insurance companies may offer premium reductions if you implement training programs for your drivers, which can help reduce the risk of accidents.
Periodic reassessment of coverage
The needs of your carrier fleet can change over time. It is crucial to periodically reassess your insurance coverage to ensure it remains suited to the size and changing nature of your vehicle fleet.
In conclusion, insuring a commercial vehicle fleet requires a thoughtful and strategic approach. By assessing specific needs, choosing the right coverage, complying with legal requirements, investing in driver training, and periodically reassessing coverage, you can ensure adequate protection for your fleet, thereby minimizing potential financial risks.
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Frequently asked questions — commercial vehicle fleet insurance
How many vehicles does it take to be considered a fleet?
The definition varies by insurer, but most consider a fleet to start at 5 vehicles. Some insurers offer fleet terms from 3 vehicles for businesses with a growing fleet. Below that threshold, individual policies or a combined contract may prove more advantageous — your broker can compare both options.
What are the concrete advantages of a fleet policy vs individual policies?
A fleet policy simplifies administrative management — a single policy, a single premium, a single renewal date. It often allows for lower unit premiums thanks to volume. Claims experience is pooled across the entire fleet. Adding or removing vehicles is done through a simple endorsement without having to issue new policies.
Can several drivers be included in a fleet policy?
Yes, and it’s one of the major advantages. A fleet policy generally covers all drivers authorized by the business, without having to declare them individually. This simplifies the management of new employees. Some insurers require a list of drivers for policies with a high-risk driver exclusion clause.
Can different types of vehicles — cars, vans, heavy trucks — be mixed in the same fleet?
Yes, a commercial fleet policy can cover mixed vehicles, but each type of vehicle has its own rating category. Heavy trucks, dangerous goods transportation vehicles, and specialized vehicles are rated differently than standard service cars. Your broker can structure a policy that reflects the actual composition of your fleet.
What happens in case of a claim involving several vehicles from the fleet?
The fleet policy covers each claim individually, even if several vehicles are involved simultaneously. The deductible applies per claim. A high claims experience will affect your premium at renewal — insurers analyze the claims/premium ratio over 3 to 5 years. A risk management program (driver training, GPS) can mitigate the impact.
Are occasional or seasonal drivers covered?
As a general rule, any driver authorized by the business is covered, whether permanent or occasional. However, if a driver has a problematic driving record, they may be excluded from the policy or trigger a surcharge. Communicate to your broker any change in your team of drivers to avoid unpleasant surprises in the event of a claim.
How does the deductible work in fleet insurance?
The deductible is the amount assumed by the business for each claim. In a fleet, you can negotiate an annual aggregate deductible that caps the total the business pays on all claims in a year. This formula is advantageous for fleets with frequent but low-intensity claims. Your broker can model the financial impact of different deductible levels.
Can coverage be temporarily suspended for a vehicle taken out of service?
Yes, most fleet policies allow you to suspend damage coverage on a vehicle in storage or out of service, while maintaining the minimum liability coverage required by law. This suspension generates a prorated premium refund. Notify your broker as soon as a vehicle is taken out of service to avoid paying for unnecessary coverage.
What is the difference between insuring leased vehicles and vehicles owned by the business?
For owned vehicles, the business is the primary insured. For leased or lease-financed vehicles, the lessor (legal owner) must be listed as an additional insured on the policy. Lease contracts often impose minimum coverage limits and maximum deductibles that your policy must comply with. Your broker can verify compliance with each lease contract.
How does the renewal of a fleet policy work and when should I start the process?
Start the process at least 60 to 90 days before the renewal date. Prepare an up-to-date list of your vehicles, your annual claims summary, and any changes in your activities. A broker can approach several insurers simultaneously to obtain the best terms for you. Do not wait until the last minute — some specialized markets have longer underwriting lead times.