Fleet Insurance vs. Individual Policies: What’s Right for Your Business?

Businesses across many industries rely on motor vehicles to function and prosper. But regardless of whether your company owns a vast armada of trucks and buses or utilizes a modest collection of passenger cars and vans, securing appropriate insurance is critical. But not all coverage is the same. When insuring motor vehicles, your company may have various options, including choosing between individual commercial auto policies for each automobile and a broader fleet insurance plan.

What Is Fleet Insurance?

As its name suggests, fleet insurance is a type of policy generally intended to cover more than one vehicle. If your business owns or leases many automobiles, it might be an attractive option. A fleet insurance policy can include many familiar financial protections as one might find in a commercial insurance policy composed for a single vehicle, including the following:

• Third-party liability coverage

• Collision coverage

• Comprehensive coverage

• Uninsured/underinsured motorist coverage

What Coverage Does My Business Need?

Purchasing the right insurance can be a complicated and nuanced task. In addition to making sure you have sufficient coverage, your business should also prioritize getting optimal rates. Still, the former should not be sacrificed for the latter. When considering your options, fleet insurance policies may offer the following advantages:

• Discounts—Insuring many vehicles under a single fleet insurance policy may help you achieve lower total costs than if you were to purchase separate policies for each automobile.

• Simplified management—By retaining only one policy for all your vehicles, you may find it easier to manage your coverage and get in contact with the right person.

On the other hand, individual commercial insurance policies retained for each of your business’s motor vehicles may also have certain advantages. Consider the following:

• Flexibility—Having several different policies may allow you to make adjustments necessary for your business’s use of a specific vehicle without affecting coverage for others.

• Additional coverage options—In some cases, individual policies may offer coverage unavailable through certain fleet insurers, such as if an employee uses a company-owned vehicle for personal reasons.

We’re Here to Help

If your Placerville and Georgetown, CA business uses multiple motor vehicles, Atwood Agency (DBA ISU Insurance Services) can help you assess your situation and secure appropriate coverage. Contact us today to begin.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.