Business & Tech
Commercial Fleet Insurance: What Is It and How Much Does It Cost?
Does your company need commercial fleet insurance- and can you afford it? Learn more from the Alpharetta insurance agents at Dykstra & Kemp.
Do you own a business that uses “company” vehicles? From shipping companies employing a fleet of semis; to landscapers, house painters, pest control, and appliance repair companies with a dozen light trucks and trailers; to companies that retain just a handful of company cars for a sales force; if your company owns vehicles that may be driven by multiple employees, you need the protection of commercial auto insurance.
Commercial auto insurance vs. personal auto insurance
Unlike personal auto insurance, which is based on your individual risk, commercial auto insurance is based on the idea that multiple employees may drive the vehicle at some point, so the risk level of insuring the vehicle is based on the entire group of potential drivers. One employee with a problematic driving record can cause rates to increase. When applied to a large fleet of vehicles, this can be quite expensive, which is why most companies with employees who drive for their jobs require spotless driving records.
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How much does commercial fleet insurance cost?
The cost of commercial fleet insurance for your company vehicles will depend on several different factors, including:
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Type- Are your company vehicles semis, pickup trucks, delivery vans, dump trucks, sedans, or a mix of various types?
Value- Are your company vehicles new or used? Top-of-the-line or utilitarian?
Average mileage- The longer the average trip of one of your commercial vehicles, the more expensive your insurance policy will be.
Location- Where will your vehicles travel? Some destinations are more risky from an insurance perspective due to crime or traffic conditions.
Do keep in mind that the way specific vehicles within the fleet are used can affect the price of your policy as well. For instance, if some vehicles regularly take long trips to risky areas, but others only ever travel in the safer immediate area, those concerns can be taken into account when determining the coverage you will need. Details like this will help your insurance agent tailor your policy to your unique set of circumstances, ensuring that your company is covered without spending more than necessary.
Want to learn more about commercial auto insurance for your Alpharetta business?
Visit Dykstra & Kemp Insurance and contact us!
Photo by Stephan Harlan via Flickr CC 2.0
