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How Does Fleet Insurance Work?

At this point, nearly 90 percent of American adults are licensed drivers. Furthermore, there are more than 284 million registered vehicles in the United States. Auto insurance is a requirement for those who want to drive legally and protect themselves against the increasing likelihood of accidents.

Additionally, numerous companies rely on vehicles and licensed drivers. Some businesses depend on only a couple of cars or delivery vans whereas others have extensive fleets of 18-wheelers. Either way, those companies must maintain insurance on their vehicles just as private vehicle owners do.

What Is Fleet Insurance?

In a nutshell, fleet insurance provides coverage for vehicles used for various commercial purposes. In most cases, the vehicles covered under fleet policies are owned by the companies using them though some policies can extend to privately owned vehicles used for business. If you're looking into getting insurance for your fleet vehicles, read on to learn more...

What Types of Vehicles Do Fleet Policies Cover?

Fleet insurance covers all types of vehicles used by businesses. Though people often picture semi trucks when they think of fleets, that's only one possibility. Fleets can include construction vehicles, dump trucks, and box trucks. They can also include various types of both passenger and utility vans.

Standard vehicles are common fleet members as well, such as sedans, pickup trucks, minivans, and SUVs. Utility trucks and buses can also be included in fleets. At the same time, many companies are bringing electric vehicles into their fleets in an attempt to help reduce their environmental impacts and showcase their dedication to conservation. Fleets can be made up of assortments of vehicles, too.

What Does Fleet Insurance Cover?

As is the case with private vehicle coverage, several types of fleet insurance policies are available. They typically cover any injuries to employees and other fleet vehicle passengers who are injured in accidents. The policies also include property damage liability, meaning they cover damages caused to other people's property at the fault of commercial drivers.

These policies also provide coverage for people who are injured by commercial vehicles but aren't actually passengers. Collision and comprehensive coverage are likewise available. This type of coverage pays for fleet vehicle repairs following an accident and may cover theft, vandalism, and other types of damage. Business owners can also choose uninsured and underinsured motorist coverage to safeguard their vehicles, employees, and other assets against drivers who are operating vehicles without coverage.

As alluded to earlier, commercial vehicle insurance policies are also available for companies that want to cover privately owned vehicles used for business purposes. They can provide extra coverage for employees who use their own vehicles for business travel as opposed to those owned by their employers. Certain policies can also cover rented vehicles. 

Getting the Right Commercial Vehicle Coverage

Coverage is available for virtually any type of vehicle businesses might use for making deliveries, transporting passengers, hauling supplies, and other commercial purposes. These policies typically cover the same types of issues as conventional auto insurance, though they may offer additional protection as well. Fleet policy prices depend on numerous factors, including the number and types of vehicles being insured and employees' driving records.

In some cases, the industry in which a business operates can factor into the types of coverage available and the cost of insurance. Either way, business owners should seriously consider maintaining fleet insurance on their commercial vehicles. It's required by law, and it offers significant protection against all the possible hazards commercial drivers may be up against. 

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