May 27, 2011

When A Fleet Auto Insurance Policy Makes Sense

Fleet auto insurance is a special type of commercial auto insurance designed for businesses with more than a few vehicles. Whereas individual commercial car insurance policies may be sufficient for businesses that only have one or two cars, car insurance for fleets can greatly simplify a business's insurance situation while cutting down on the amount of money that the business spends on insurance each year. Auto insurance companies charge less for car insurance for fleets, because more vehicles are being insured, and in general fleet auto insurance is extremely beneficial. However, there are a few things to keep in mind when considering a fleet auto insurance policy.

The first thing that businesses will have to consider is the number of vehicles that they're attempting to insure. The feasibility of car insurance for fleets is obviously dependent on the number of vehicles being insured. Different car insurance companies have different requirements for their fleet auto insurance programs, and may even have different requirements based on the class of the insured vehicles. However, fleet auto insurance is almost always less expensive than individual insurance policies, so if a business qualifies for fleet insurance, it should consider the option.

Generally, car insurance for fleets involves the same amount of car insurance coverage for every covered vehicle, but this is flexible. Most car insurance companies will have no problem with customers who want to add a bit of coverage to a specific car that's worth more than average or who would want to buy less coverage for a vehicle that isn't driven very often. Nevertheless, fleet car insurance may not make sense if every vehicle in the fleet needs wildly different amounts of insurance coverage. Fleet auto insurance is intended as a simple, low cost form of insurance, but business owners with small, varied fleets might need to consider buying individual policies for each vehicle.

To determine whether fleet auto insurance is worthwhile, business owners should collect several insurance quotes from major insurance companies. This is easy to do online. Commercial car insurance generally costs more than private car insurance, but there are several ways to decrease the cost of fleet insurance and to maximize the savings that a business will gain from insuring multiple vehicles with the same provider. Driver records should be presented to the insurance company and car alarms should be installed in every fleet vehicle, particularly if the business is located in a high crime area. Taking these steps and comparing fleet auto insurance quotes regularly will help to ensure lower then average auto insurance rates and great coverage for a business's fleet of vehicles.