Understanding the Basics of Fleet Insurance
Fleet insurance is basically a policy which protects your employees and your business if there is an accident or any other incidents take place involving a business vehicle. There are different types of fleet insurance policies available in the market. The most important things to keep in mind while buying a policy is the purpose for which it is being purchased and the type of vehicle covered under it. Fleet insurance, which covers multiple drivers and vehicles, is usually required to safeguard your business and your staff. The type of policy you choose should be compatible with the size, kind of usage and fuel efficiency of your fleet of vehicles.
There are two main types of fleet insurance policies-collision and comprehensive. Collision auto insurance policies pay for damages incurred on a single vehicle. These policies pay for both physical repairs and routine servicing of the fleet vehicles. The premium of this kind of policy depends upon the value of the vehicle being insured. The larger the value of the auto, the higher the amount will be charged.
Comprehensive commercial fleet insurance policies cover damages done to other cars and vehicles of the commercial fleet, but may not include repairs to personal cars owned by the drivers. Such comprehensive policies usually have higher premiums and charges for increased mileage. The benefits of such policies are also often restricted due to the fact that all vehicles are insured under a single policy. In some cases, certain types of vehicles such as luxury cars and limousines are excluded from coverage. There may be a limit for reimbursement of expenses caused by theft or damage to other cars or property owned by the driver of the fleet.
One advantage of purchasing a vehicle fleet insurance policy is that it reduces the burden on the drivers of the company. Because of the reduced expenses caused by fleet insurance policies, the company can allocate more money to its profit, increasing its capacity to invest. Drivers are thus freed from the stress caused by dealing with customers or providing service to clients. There is also an increase in the productivity of the employees because of the assurance that their vehicles will be protected against damage and accidents.
A good way to compare over 200 auto insurance companies at once is through the use of the internet. It is easier to browse through the websites of different companies online than it is in person. This is because a variety of information related to fleet insurance and auto insurance rates can be found online. People can read up about the terms and conditions, coverage, and other pertinent information concerning various plans available. They can compare the rates and premiums over the internet, before purchasing a policy for their vehicles.
It is advisable for fleet insurance cover to have minimum liability coverage. The minimum coverage that should be purchased is the type of liability coverage that would be applicable to a driver if he or she were to cause an accident. Liability coverage includes bodily injury coverage and property damage coverage. The more comprehensive the coverage, the higher would be the premium.
Fleet vehicles are subjected to a number of risks. For this reason, it is advisable to purchase insurance policies that are designed specifically to meet the needs of such vehicles. For example, a fleet insurance policy should not be considered a substitute for an individual policy for a truck or SUV. Also, it is important to remember that all insurance policies for fleet vehicles are often considered for commercial vehicles, which include trucks, buses, delivery vans, and trailers.
When there is a breakdown of one vehicle in transit, such as a collision or a traffic accident, the driver must file a claim for reimbursement. If the vehicle that is damaged was driven under a fully comprehensive insurance policy, the insurance company would pay for the repairs that are necessary for the safe return of the vehicle to its rightful owner. On the other hand, the driver who was driving under a liability only policy would receive payment only if he or she can prove that the accident was caused by him or her. To do so, the owner of the car will have to submit a document naming the specific person or persons responsible for the accident. By doing so, drivers will be able to ensure that they receive appropriate compensation for the damage they have caused.