Fleet Policy

What Does Fleet Policy Mean?

A fleet policy is a type of commercial auto insurance that covers a group of motor vehicles, typically ranging from two to 500. The coverage can either be uniform for all vehicles or vary based on the needs of the insured. Similar to standard auto insurance, the coverage may range from basic to comprehensive. Smaller companies that don’t have enough vehicles to qualify for a fleet plan can buy commercial auto insurance on a per-vehicle basis instead.

Insuranceopedia Explains Fleet Policy

Companies that own a large number of vehicles typically purchase a fleet policy, though companies with a mini fleet (six or fewer vehicles) may also choose this option. A fleet policy usually covers various types of vehicles, including trucks, vans, and family fleets. Operators that mostly run trucks may want to look at commercial trucking insurance, which covers freight and long-haul risks rather than mixed-vehicle fleets. Under this policy, the insurance company generally agrees to cover repairs, medical expenses, and damages caused to third parties, especially if the injury or harm results from explosive, toxic, or flammable goods. Coverage may also include provisions for temporary rentals and roadside assistance. How a business manages its drivers and vehicles also affects what it pays for premiums, and there are practical steps fleet operators can take to lower their risk profile before renewal.