If your business owns or uses trucks, you need to have the right Truck Insurance to protect your vehicles, employees, and business.
Trucks can weigh 20 to 30 times as much as passenger cars, and they are also taller with greater ground clearance. Trucks also take longer to stop. A loaded tractor-trailer takes 20-40 percent farther to stop than a personal vehicle.
Therefore, the risk for trucks is significantly higher than it is for personal vehicles. Higher risks mean higher consequences. In 2019, 4,119 people died in large truck crashes, and 97% of vehicle occupants killed in a two-vehicle crash involved a large truck. The average cost of a significant truck accident involving a fatality is $13.6 million, and the average cost of all large truck accidents is $91,000.
The right truckers' insurance helps ensure that one major accident doesn't put you out of business.
If you use a truck (or any vehicle) for business, you need to have Commercial Auto Insurance (a non-fleet insurance); however, you may qualify for fleet insurance if you own five or more trucks. Fleet insurance can help you save money and manage your fleet more efficiently.
Here's what you need to know about Fleet Insurance.
Fleet Insurance vs. Non-Fleet Insurance
Your vehicle(s) can be classified as non-fleet, which means each vehicle is insured under an individual insurance policy. If you can classify your vehicles as fleet vehicles, all of them are insured under one policy.
In almost every state, it is illegal to operate a vehicle without valid insurance. If a vehicle is used for commercial purposes – such as transporting goods - a Commercial Auto Policy is required. Many business uses or vehicle types can be excluded from personal auto Insurance policies.
A non-fleet vehicle can be owned by a company or an individual. With a "non-fleet" Commercial Auto Policy, the underwriting is based primarily on the driver – his or her driving record, driving experience, documented claims, etc.
Fleet insurance is a commercial vehicle insurance that covers more than one vehicle and driver. It can be a fleet of cars, trucks, ships, or aircraft covered under one insurance policy. How many vehicles constitute a fleet varies by state and by insurance companies. Typically, the minimum is five vehicles. Often, ten or more units is required to qualify for fleet insurance.
To qualify for fleet insurance, the vehicles must be owned by a business, not an individual/driver. Because there are more underwriting variables with a fleet, working with an insurance agent with experience in Trucking Insurance is crucial.
Advantages of Fleet Insurance
Utilizing a fleet insurance policy means having one insurance policy for all of your vehicles instead of multiple policies. Fleet insurance may reduce the overall cost of insurance, save hours of administrative work, and make fleet management more manageable.
Fleet Insurance often comes with more deposit down payment options, and there is only one renewal date, so you don't have to keep track of multiple insurance policies. Fleet insurance can also make it easier to assign drivers to different vehicles.
How to Save on Fleet Insurance
Typically, the more trucks you have, the higher the value, which means higher insurance premiums, but the number of trucks is not the only thing that will affect your costs. Other factors include…
- Type of Trucks
- Age of Trucks
- Value of trucks
- How the trucks will be used
- The type of policy
An insurance agent with experience in Truckers Insurance – like the agents at American Insuring Group – can help determine which type of policy is best for your specific needs and share opportunities for cost savings. Plus, as independent agents, we will compare different policies and quotes to ensure you pay the lowest price for that coverage.
Give us a call at (800) 947-1270 or (610) 775-3848 or connect with us online.