Trucking business owners rely on fleets of commercial vehicles to perform the essential tasks of transporting loads to their destination. This area of operation comes with a considerable risk involved, such as accidents of the trucks and fatal injuries to the people involved in the accident. Hence, Fleet management software business leaders depend on a fleet insurance policy to ensure the safety of these important assets and life of the people on the road.
Fleet insurance is generally considered the best auto insurance plan for covering two or more business vehicles under a single policy. Having a policy saves the owners time, money, and other hassles.
This article explains everything you need to know about fleet insurance.
What does fleet insurance cover?
Every state in America has variations in the coverage amount. You must get familiar with your state’s requirements for helping your business maintain compliance and avoid penalties. Federal and state regulations require all fleet vehicles to carry minimum liability insurance for commercial purposes. This type of insurance include:
Bodily injury: This type covers if a vehicle in your fleet causes injury to another person.
Property damage: if a vehicle of your fleet damages another person’s property, you will need to have this type of coverage.
Combined single limit: This coverage option consolidates your policies by providing one overall limit for bodily injury and property damage claims against you rather than two separate limits.
Fleet insurance mainly depends on the age-condition-value of the vehicle, number of vehicles in a fleet, intended use of vehicle, and type of policy.
How much does fleet insurance cost?
Trucks are classified into three size categories based on gross vehicle weight rating (GVWR), and each category has a different policy cost associated with it.
- Light duty or less than 10,000 lbs. is class 1 and 2, including pick-up trucks, flatbed trucks, and full-sized vans with the least expensive package.
- Medium duty or up to 26,000 lbs. is class 3,4, 5, and 6, including box trucks and ambulances in the mid-price range.
- Heavy duty or more than 26,000 lbs. is class 7 and 8, which includes 18 wheelers has the most expensive insurance policy.
How to save money on fleet insurance?
There are few ways to save money on your fleet insurance policy. The best way is to compare different policies on Google and determine which coverage options suits you best. Having a range of quotes will also help you are not overpaying for your policy.
Some other ways are as follows:
- Identifying your company’s risk profile.
- Installing cameras.
- Maintaining high safety standards.
What are the advantages of having fleet insurance?
Businesses looking to ensure vehicle and team member safety, reduce their time spent on administrative tasks, and save money should consider fleet insurance.Fleet management software In addition to the peace of mind that comes with knowing your assets are protected, fleet policies provide the following advantages:
- Maximize efficiency.
- Streamlined administration.
- Potential savings.
FleetDrive360 has features to record and maintain all the vital documents, including the insurance policies of your trucking business. It also sends important notifications before the expiry of these documents and saves your company from getting penalized!