Commercial Vehicle Fleet Insurance: Coverages and Costs

Commercial vehicle fleet insurance covers multiple cars and trucks that your business owns.1 Besides protecting the company from liability if an employee causes an accident while driving a company vehicle, it can also cover vehicle damage.

Business owners with several vehicles can benefit from commercial vehicle fleet insurance. Nearly every U.S. state requires it, and it protects your business against the legal and financial consequences of at-fault collisions.

What is commercial vehicle fleet insurance?

Commercial vehicle fleet insurance protects your business from financial losses due to accidents, property damage, and lawsuits. Designed to cover all the vehicles your business owns or leases, a fleet insurance policy is typically more cost-effective than insuring each vehicle separately.

A standard commercial vehicle fleet policy can cover many types of business vehicles, including:

• Box trucks

• Cargo vans

• Cars

• Construction vehicles

• Food trucks

• Light trucks

• Pickup trucks

• Trailers

Some insurers define a fleet as two or more vehicles, while others offer coverage only for fleets of 20 or more vehicles.

Who needs commercial vehicle fleet insurance?

Any business owner who uses multiple vehicles for business purposes needs commercial vehicle fleet insurance. It protects your business from vehicle repair costs and lawsuits related to accidents, and every state except New Hampshire requires it.

The professions listed below often need commercial vehicle fleet insurance:

• Catering

• Cleaning and janitorial services

• Construction

• Logistics

• Retail

• Trades like electrical and plumbing

• Transportation services

• Trucking

What commercial vehicle fleet insurance covers

A standard commercial vehicle fleet insurance policy covers liability when an authorized driver causes an accident. You can also add coverage for physical damage and losses that uninsured drivers cause.

The following coverages are standard components of a commercial auto insurance policy:2

Optional fleet insurance coverages

In addition to the standard coverage commercial vehicle fleet insurance provides, optional coverages can fill the gaps in your basic policy.

Common commercial fleet insurance coverage options include:

• Roadside assistance: Roadside assistance coverage pays for basic roadside repairs, like flat-tire changes, fuel delivery, lockouts, and battery jump-starts. Most policies also cover several miles of towing.

• Gap insurance: Gap insurance provides valuable protection for leased or financed vehicles in your fleet. If a vehicle is stolen or totaled, it covers the difference between its value and what you owe.

• Rental reimbursement insurance: Rental reimbursement insurance pays for a rental vehicle while a business car or truck is repaired after a covered loss.

• Hired and non-owned insurance: Hired and non-owned auto insurance covers vehicles your business rents or borrows. It also covers your employees’ personal vehicles used for work purposes.

Commercial vehicle fleet insurance cost

The cost of commercial vehicle fleet insurance is different for every business. Rates depend on various factors specific to your business and also the types of vehicles you need to insure.

Because commercial vehicle fleet insurance premiums can vary widely, it’s important to shop around. Comparing quotes from several insurance companies can help you find the most affordable commercial auto insurance policy for your situation and coverage needs.

Factors that affect the cost of commercial vehicle fleet insurance

As with personal auto insurance, many factors affect how much you’ll pay for business fleet insurance. These are some factors insurers look at when calculating premiums:3

• Location: Your business location affects coverage costs. For instance, you might pay more if your business stores its fleet in a major city where theft is more likely.

• Type of vehicles: Insurers consider the type of vehicles your business uses. Insuring heavy trucks and construction vehicles typically costs more than insuring smaller cars.

• Age of vehicles: If your fleet consists primarily of brand-new vehicles, you’ll pay more for commercial vehicle insurance than someone with a fleet of older vehicles. Newer vehicles with safety features like anti-theft devices might qualify for lower insurance rates.

• Vehicle operations: Your fleet utilization can affect your insurance rates, as it reflects the level of risk your business poses to the insurer. For instance, a cleaning business with three vehicles might have lower premiums than a logistics company with 10 trucks in its fleet.

• Business claims history: If your business has filed a commercial insurance claim in the past few years, you could pay higher rates for your commercial vehicle fleet insurance.

How to save money on commercial vehicle fleet insurance

If you’re looking to save money on commercial vehicle fleet insurance, these strategies can potentially reduce your rate:4

Commercial vehicle fleet insurance FAQs