Protect Your Company Vehicles with Fleet Insurance
57Fleet insurance is a type of insurance that covers a group of vehicles, usually from four vehicles up. This can be purchased whether your automobiles are for business or personal use. Common clients of this type of insurance are car rental companies, taxi companies, trucking companies and car collectors. The biggest advantage of fleet insurance over individual motor insurance is the convenience in administration. All your vehicles are placed under one policy, compared with individual insurance where each car has its own policy, schedule of payment and insurance implementation. This is beneficial if you’re the type who doesn’t want to get bothered with having to pay bills from time to time. Fleet insurance is also cheaper than individual insurance.
How your insurance premium is calculated depends on certain factors. The age of your driver affects your premium. Data have shown that younger drivers are more prone to accident than their more experienced counterparts, which translates to higher premium for less experienced drivers. Your driver must also be licensed to drive the specific vehicle insured, as mandated by the DMV. The insurance company doesn’t accept claims for accidents that involve unlicensed drivers. They also run a thorough history check of your drivers to assess their risk based on how much and what kind of accident they had gotten into in the past. The age and condition of your automobiles play a part in the premium computation. Most companies offer a discount for vehicles with an electronic immobilizing system since this lowers the risk of theft. You could also purchase a cheaper premium if you have a well-secured area for vehicles when not in use.
Types of fleet insurance coverage:
Comprehensive coverage is the most expensive since it covers repairs to damages to own vehicle and other properties, and medical assistance to all parties involved – driver, passenger and third party. Most insurance companies also provide a temporary vehicle in case the insured object has been damaged.
Third party liability coverage covers damages done to other vehicles, property and people that do not belong to your company. This is compulsory and less expensive in nature.
Roadside assistance coverage is becoming a popular coverage choice because of its practicality. You are assured of getting assistance no matter where and in what condition your vehicle is. The common thing that uninsured vehicle drivers do in times of an emergency is to leave the car on the road and seek help, making the vehicle susceptible to vandalism and looting.
