How do you insure a fleet of cars?

How do you insure a fleet of cars?

 

Do rental car fleets require insurance? Yes, like any other business car rentals require to be insured. Maintaining a fleet can be complicated, make it less complicated by insuring your fleet!

There are many insurance companies specifically catering to rental businesses, but that does not mean every insurance company fits your business model. You need to choose an insurance provider that has policies that align with your business and will benefit you the best.

Types of Insurance

  • There are two types of insurance policies to choose from;
  • Third-party insurance covers costs for any damages in the event of an accident caused by one of your vehicles. This means that any damages to your vehicle will not be covered.
  • Comprehensive insurance covers any costs required to fix damages to your car in the event of an accident.
  • You can also obtain a policy covering any driver, which means you can ensure customer safety as any person who drives a car from your fleet will be secured.

Things to consider before obtaining Fleet Insurance

  • Insurance companies require a list of the vehicles that need insurance in your fleet as insurance price depends on the size of the fleet. Therefore you will have to submit a list of at least the minimum number of vehicles in your fleet along with the age limits.
  • Since you now have an insurance list contact as many insurance providers as possible and find out which policies fit you the best. Consider starting with a local insurance provider before moving on to online-based insurance companies. Compile all pricings and policies into a spreadsheet to better compare prices and choose what fits your business best.
  • Since each car rental business may operate differently, it may be best if you consider opting for a customized car rental insurance policy. This is important in the case of different vehicle types intended for different purposes, the insurance policies required by two types of cars may be different i.e. recreational vehicles vs vehicles for city and highway driving.

Typical components included in fleet insurance policies

  • Liability coverage
  • Bodily injury and property damage of a third party involving your rental car. Other policies included are:
  • Injury Protection (PIP)
  • Motorist Coverage (UM)
  • Motorist Coverage (UMI)
  • Comprehensive and Collision insurance
  • Coverage included repairs or replacement of damaged vehicle due to accident with another vehicle or stationary object.
  • Covers for damages made to your vehicle by fire, theft, and, vandalism.

Where can you look for fleet insurance providers?

The top spot would be ARRC (Auto Rental Resource Center), members are given access to a variety of fleet insurance vendors. They also provide access to fleet management software, one of the recommended companies is Navotar that is a specialist in fleet management software and car rental business website development.

Using quote comparison sites can also help in looking for the best fleet insurance provider that fits your business model.

There are many fleet insurance providers, here are a few you may want to consider for your business.

  1. Erie

Erie offers excellent in-person and over the phone customer service and provides no-cost bonus features, optional add-ons and risk control. However, they are only available in 12 states.

They offer non-owner coverage, lifetime repairs guarantee, and roadside assistance is offered free of charge. They follow a monthly payment plan.

  1. Allstate

Allstate offers customizable coverage and speedy claims, this helps you keep your employees and assets protected. They provide services in all 50 states and follow a monthly 12-month payment plan – Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and Wisconsin, including Washington, DC.

They offer a 10% bundling discount, safety device discount as well as an economy car discount up to 10%. Allstate offers rideshare coverage, non-owner coverage, lifetime repairs guarantee, whilst roadside assistance is optional.

  1. Progressive

Progressive offers customers with specialized coverage and industry-specific options. They are available in all 50 states. It may not be the cheapest fleet insurance provider, however, its customizable coverage plans may help you save money and get exactly what your business needs.

They offer non-owner coverage, lifetime repairs guarantee, with roadside assistance being optional.They may offer one of the best fleet insurance coverage in the country, however, their customer service may not be the best.What do you think about Fleet Insurance, is it worthwhile to spend on insuring your fleet?

We believe if your fleet is insured that your business will be secured, to find out more information visit:  https://arrc.net/commercial-fleet-insurance/

Navotar would like to wish you good luck with your rental business ventures!

 

 

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By Navotar  /  28th April 2020