When a company owns two or more vehicles, rather than purchase separate car insurance policies for each vehicle, the company can purchase a car fleet insurance policy. The policy covers not only company cars, but even trailers and secondary vehicles if they are included in the writing of the policy. This is a commercial policy for businesses that offers advantages over traditional car insurance policies.
Differences
Fleet policies work differently than standard car insurance policies. While the deductibles and material damage options can differ between insured vehicles, the liability limits are the same for all the vehicles. So if you decide to change the limits for one vehicle, it will change for all of the vehicles insured under the policy. It does not cover damage inflicted by you or your employees. You need general liability commercial insurance for this.
Drivers
Any driver of a fleet vehicle needs to be listed separately on the policy along with the amount of driving they are expected to do with the vehicles. This does not mean that there can only be one driver per vehicle; rather, it means all drivers must be listed. If a claim is filed and the driver isn't listed on the policy, the claim might be denied. Some insurance companies won't accept drivers with poor driving records or those under the age of 25. They may be denied coverage in a fleet-insured vehicle.
Equipment
Fleet insurance only covers the vehicles. Anything that isn't factory installed or bolted down needs to be covered under a policy for theft and vandalism. The same insurer for fleet insurance can usually provide you with inland marine insurance to cover these items. They are insured at their stated value basis.
Changes
If you sell a vehicle and purchase a new one, you will need to adjust your policy. The same is true if employees who will be driving the vehicles change. Make these changes as soon as possible to maintain coverage of your vehicles. If a new vehicle is damaged before being included on the policy, your claim for damages may be denied.
