A Brief Guide to Commercial Fleet Insurance

Commercial fleet insurance is a type of commercial auto insurance that provides coverage for fleet vehicles. These vehicles are typically owned by businesses that use them to transport goods or passengers on a regular basis.

These insurance protects the business, its drivers, and passengers against liability claims, physical damage to the vehicle, and some types of theft.

This guide includes everything you need to know about commercial fleet insurance, including what it is, what it covers, how to save money on it, and how to maintain a safe fleet of vehicles.

What is Commercial Fleet Insurance?


As mentioned above, commercial fleet insurance is a type of commercial auto insurance such as american-reia, that provides coverage for vehicles. These vehicles are typically owned by businesses that use them to transport goods or passengers regularly.

It is always written on a fleet basis, which means that all vehicles are insured together. This allows the business to take advantage of discounts when purchasing such insurance.

The policy typically has one designated primary company responsible for covering claims filed by other parties against the fleet and several other named companies providing secondary coverage.

Whether your motorcade consists of just a few vans or trucks, or several hundred vehicles, commercial insurance is an important investment for any business that relies on its vehicles for transportation.

What Does Commercial Fleet Insurance Cover?

These insurance provides coverage for liability claims, physical damage to the vehicle, and theft. It also includes some types of medical expense coverage, roadside assistance, and other special features.

Be sure to discuss all of your options with an agent or broker before purchasing coverage. This way, you know exactly what you are getting for your fleet insurance premium dollars.

Liability Coverage

The primary purpose of commercial insurance is to provide liability coverage for the business against claims filed by other parties. This includes injuries or damage to property that may occur when one of the vehicles is involved in an accident.

Physical Damage Coverage

They also provide physical damage coverage for the vehicles. This covers the cost of repairing or replacing a damaged vehicle in an accident, regardless of who is at fault.

Theft Coverage

These insurance also includes theft coverage, which pays for the cost of replacing a vehicle that is stolen or vandalized.

Medical Expense Coverage

Many policies also include medical expense coverage, which pays for the medical expenses of drivers and passengers who are injured in an accident. This coverage can be significant, especially if someone is injured and requires extensive medical care.

Roadside Assistance

Many policies also include roadside assistance coverage, which pays for the cost of towing and repairs when a vehicle breaks down. This can be a lifesaver if your vehicles are spread out over a large area.

Other Special Fleet Features

Be sure to review your policy carefully for any special features. These can include coverage for items like rental cars, replacement vehicles, or lost keys and key fobs.

How Much Does Commercial Fleet Insurance Cost?

The price of commercial fleet insurance varies depending on the size and make/model of the vehicles in question and the business itself. Here are some insurance factors that can affect your insurance rate.

Fleet Size

The more vehicles you have, the higher your premiums will be. This is because policies are typically written on a fleet basis, which means all vehicles are insured together under one policy. The more vehicles involved in the policy, the higher the premium.

Business Type

The type of business you are in can also affect your insurance rates. For example, companies that transport goods or passengers for a living will typically pay more for insurance than businesses that do not.

Vehicle Make and Model

The make and model of your vehicles can also affect your premiums. Some vehicles are more expensive than others, so that insurance rates will vary accordingly.

How to Save Money on Vehicle Fleet Insurance


The fleet insurance premium that you pay on each vehicle will determine your insurance cost. Here are some tips to help you save money on premiums.

1. Shop Around

Shop around for insurance quotes before making a purchase decision. Ask agents and brokers for quotes on various types of vehicles, as well as policies that offer discounts.

2. Group Discounts

Be sure to ask agents about discounts for groups of vehicles. For example, businesses with 25 vehicles or more can sometimes get a discount on their insurance.

3. Vehicle Replacement Policy

Consider purchasing a fleet policy that includes a vehicle replacement feature. This will help you replace a fleet vehicle that is damaged or stolen without paying out of pocket.

4. Low Mileage Discounts

Many insurance companies offer low mileage discounts for businesses that do not drive their vehicles very often. If you can get by by using a few vehicles only occasionally, be sure to ask your agent about low mileage discounts.

5. Safe Driving Discounts

Many insurance companies also offer safe driving discounts to businesses with a safe driving record. If you can keep your drivers safe and free of accidents, you may be able to save money on your insurance policy.

6. Maintain Safety Standards

Make sure your drivers are aware of your insurance company’s safety standards and enforce these standards by punishing drivers who violate them. This will help keep your fleet safe and help you save money on your insurance policy.

Tips for Maintaining Safe Fleet Vehicles

A fleet policy is only as good as the vehicles it covers. Here are some maintenance tips you should follow to keep your fleet running smoothly and safely.

  • Keep track of and follow all state and federal safety laws.
  • When you’re hiring drivers, be sure they have reliable records and that all of their cars are in good working order.
  • Before driving them, train drivers to complete rapid routine vehicle inspections.
  • Ensure that your drivers are properly trained and given routine safety procedure protocol reviews.
  • Be sure your drivers understand all safety rules and regulations, including handling emergencies.
  • Never allow your drivers to drive impaired or under the influence of drugs or alcohol.
  • Keep your vehicles in good working order by maintaining records of all maintenance work you’ve performed.

ROI of Keeping Your Workers Safe on the Road

Keeping your workers safe on the road is rewarding. Check the infographics below by Motor1 to know the ROI of maintaining your workers safe on the road.

So, this was all about commercial fleet insurance. Please let us know what you would like us to cover next in the comments! We hope this brief guide has helped you.

Ricardo is a freelance writer specialized in politics. He is with from the beginning and helps it grow. Email: richardorland4[at]