A fleet insurance is a type of coverage on multiple vehicles under one contract. The minimum number of vehicles is usually five or more. This insurance is available for licensed motor vehicles like cars, trucks and vans. Instead of having separate insurance for individual vehicles it is advisable to opt for a commercial automated insurance of this kind because there are various options available to suit various needs. Premiums are based on calculations that account for historic claims. Furthermore discounts are allotted on clubbing of several policies into one.
Kinds of Coverage
In order to cater to various kinds of budgets, combinations and needs, several kinds of this commercial insurance is available. Some of the broader varieties are:
- Comprehensive Policy
- Liability Insurance
- Roadside Assistance
Advantages and Disadvantages of each kind
A Comprehensive policy or a Full Coverage policy is the most holistic Fleet insurance out there. This policy offers money for reparations in case of accidents as well as providing for the medical bills of the driver and any other helper/worker present in the vehicle. Furthermore, this kind of policy covers basic liability which means that if the insured person’s vehicle damages other vehicles and/or injures people, compensations are offered for them as well. The premium on this kind naturally costs more than the others; however, this might be a more prudent decision. Nonetheless any such decision would depend on the kind of ventures the company deals in and a proper risk assessment.
As the name dictates, this liability insurance offers coverage only for the other party in case of an accident. It is advisable to opt for this variety only when one has full ownership of the vehicles in question. This policy covers the other party’s medical bills as well as bills of reparations on their vehicles. However, this is subject to being proven that one’s own party is unequivocally guilty. The insurance holder’s vehicle or driver will not be covered under this policy in any way whatsoever. Nonetheless, this option is a viable and advantageous one because the premium is much lower than the former.
Roadside assistance is more of a precautionary policy that falls into action in case the policy holder’s vehicle is stranded. This minimises risks of swindle and vandalism if and when the vehicle is trapped. Under this policy, towing or moving of the vehicle is considered as well as any medical help the driver may need.