Buying Fleet Auto Insurance: What You Need To Know in 2023
Fleet insurance is recommended for any business with two or more cars that need auto insurance coverage. On average, you can pay between $50 and $200 per vehicle under a fleet auto insurance policy. You can save hundreds of dollars per year on fleet car insurance if each driver has a clean driving record.
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Michael Vereecke
Commercial Lines Coverage Specialist
Michael Vereecke is the president of Customers First Insurance Group. He has been a licensed insurance agent for over 13 years. He also carries a Commercial Lines Coverage Specialist (CLCS) Designation, providing him the expertise to spot holes in businesses’ coverage. Since 2009, he has worked with many insurance providers, giving him unique insight into the insurance market, differences in ...
Commercial Lines Coverage Specialist
UPDATED: Jan 3, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our auto insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different auto insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Jan 3, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our auto insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different auto insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Fleet insurance provides auto insurance coverage for multiple vehicles
- Semi-trucks are the most expensive vehicles to insure
- Progressive and Travelers have the highest market share for fleet insurance
Are you interested in getting fleet insurance? You’ll be surprised that the best auto insurance companies are also the top fleet insurance companies. But how do you get fleet insurance? And what are fleet insurance requirements? Don’t worry – we’ll explain how fleet insurance works.
Check out this guide to explore how fleet insurance is related to commercial auto insurance, how you can get fleet insurance quotes, and which companies have the best commercial fleet insurance. Read on to learn all about fleet insurance. If you’re ready to see quotes from the best insurance companies in your area, enter your ZIP code in the free comparison tool above.
What is fleet insurance?
Fleet insurance provides coverage for multiple cars under one policy. Also, fleet insurance is usually designed for businesses with three vehicles or more to insure. In other words, fleet insurance is another way of saying commercial car insurance for multiple motor vehicles at a business or organization. For example, a cleaning service with multiple vans and trucks should get fleet insurance.
Fleet insurance works the same as personal auto insurance, but the insurance company covers various vehicles under one policy under specific rates. Most fleet insurance policies are for commercial businesses. Therefore, you won’t see fleet insurance for private use.
What is small fleet auto insurance?
Small fleet insurance covers two cars or more. A small fleet car insurance policy insures two to five vehicles.
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What are the fleet insurance requirements?
Fleet auto insurance requirements vary by state. The most common limits for bodily injury are at least $100,000 for bodily injury of one person and $500,000 for bodily injury of multiple people per accident. Required property damage limits are as low as $50,000 per incident. However, fleet car insurance companies may recommend higher coverage amounts. For instance, fleet insurance companies may recommend more on your coverage limits if you travel or are based in areas known for a higher frequency of fleet insurance claims.
Which coverages are available under fleet insurance?
Fleet car insurance covers bodily injury (BI) liability, property damage (PD) liability, and combined single limit (CSL) liability.
Basic fleet insurance coverage is like liability insurance for personal cars. CSL liability combines BI and PD in one limit if a claim is made for both coverages. But liability insurance coverages don’t compensate you when you’re at fault in an accident. As a result, fleet insurance companies insist that you add property damage coverages like collision and comprehensive insurance.
Uninsured motorist coverage also provides help in complicated situations where one of your vehicles is damaged by a hit-and-run driver.
How much is fleet insurance?
Fleet insurance rates vary for each company. If you want affordable fleet insurance, you’ll need to shop with various insurance companies until you find a commercial insurance policy that works for you. Quotes for fleet insurance are usually not publicized. However, we researched the average fleet insurance rates and narrowed them down to vehicle type.
Here’s what we found:
| Car Type | Min. Monthly Cost Commercial Auto Insurance | Max Monthly Cost Commercial Auto Insurance |
|---|---|---|
| Car | $50 | $200 |
| Semi | $667 | $1,042 |
| Cargo/Delivery Van | $275 | $517 |
| Limo | $333 | $500 |
| Cab | $417 | $833 |
The cheapest vehicle type to insure is a car. Cars are usually sedans, hatchbacks, vans, and some compact SUVs.
Bigger vehicles, such as cargo vans, multi-seater vans, and semi-trucks cost more to insure.
Your fleet auto insurance rates also increase when you customize your policy. The more coverage you need, the more you’ll pay for insurance.
How are fleet auto insurance quotes determined?
You’ll need to get a quote from an insurance company before a fleet insurance policy is available to you. But what factors determine fleet insurance?
Let’s look at the main characteristics:
- The number of vehicles in your fleet
- Purpose of vehicles
- The age of your cars
- Condition of your vehicles
- The location of the cars
- Properly licensed drivers
Fleet insurance companies also look at the estimated miles you and your drivers will travel using covered cars. Higher-than-average mileage means more expensive rates.
How do I save money on fleet auto insurance?
Your business needs to qualify for multiple commercial auto insurance discounts to save money on fleet insurance. Since you’ll have multiple drivers, a commercial car insurance company inspects the risk profile of your business. If your business is new, your fleet insurance rates may be higher than average.
However, monthly fleet insurance rates may decrease if your vehicles have cameras, safety features, and anti-theft features. Businesses that hire drivers with clean driving records can also receive a fleet insurance bargain for promoting high safety standards.
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What are the best fleet insurance companies in America?
Locating the perfect fleet insurance policy for your business is complicated. Therefore, it’s best to start with the top companies that provide fleet car insurance.
Let’s examine the top fleet insurance companies in America:
| Company | Direct Premiums Written | Market Share |
|---|---|---|
| Progressive | $4.4 Billion | 10.90% |
| Travelers | $2.6 Billion | 6.30% |
| Liberty Mutual | $1.8 Billion | 4.40% |
| Nationwide | $1.6 Billion | 4% |
| Berkshire Hathaway | $1.5 Billion | 3.70% |
| Old Republic | $1.4 BIllion | 3.60% |
| Zurich Insurance | $1.4 Billion | 3.40% |
| Auto-Owners | $994.9 Million | 2.50% |
| Tokio Marine Group | $761.7 Million | 1.90% |
| Chubb Ltd | $740.7 Million | 1.80% |
Progressive, Travelers, and Liberty Mutual are also in the top 10 companies for personal auto insurance. Berkshire Hathaway has connections to Geico auto insurance.
Since fleet auto insurance rates are mostly private, you’ll have to get a quote for an accurate estimate.
What are the pros and cons of fleet auto insurance?
Fleet insurance is essential for any business that requires several vehicles. But there are some drawbacks to fleet car insurance.
Here’s a breakdown of the pros and cons of fleet insurance:
| Advantages to Commercial Auto Insurance | Disadvantages to Commercial Auto Insurance |
|---|---|
| Extra comprehensive/collision coverage is available for full protection at an added cost | Claim payout may be slow if you are working with the wrong insurance company, but this applies to all insurance coverage types |
| Extra liability insurance is available for an added cost | May come with a per-accident dollar amount cap or limit |
| Meets insurance requirements for a fleet of company vehicles | May have policy limitations/ exclusions for high-risk businesses |
| Meets state minimum commercial liability requirements to drive legally | May only provide partial coverage for losses in a catastrophic disaster or major lawsuit |
| Provides coverage in areas where personal car insurance lapses | |
| Provides protection for employees that drive on-the-job |
Fleet insurance has more advantages than pitfalls. A commercial business with uninsured or underinsured cars can cause a financial disaster.
It’s highly recommended and required for businesses to have commercial insurance.
Fleet Insurance: The Bottom Line
Fleet insurance is necessary for any business, nonprofit, or government organization with two or more cars. BI, PD, and CSL liability are basic auto insurance coverages for fleet insurance. Adding property damage options like collision and comprehensive coverage further protects your investment. Ultimately, you can save money on fleet auto insurance by hiring good drivers and reducing car accidents to a minimum.
Before you buy fleet insurance, use our free quote tool below to compare multiple insurance companies near you.
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Frequently Asked Questions: Fleet Insurance
Do you want to know more about fleet insurance? Read these answers to frequently asked questions to learn more about fleet car insurance.
#1 — Is fleet insurance cheaper than regular auto insurance?
Yes, it is. Fleet insurance provides a deal for businesses and organizations that want to protect their property and employees under one insurance policy.
#2 — Do I need fleet auto insurance?
If your business has multiple cars that need insurance, then yes. Personal car insurance with several vehicles doesn’t qualify for fleet insurance.
#3 — What is mini fleet auto insurance?
A mini fleet insurance policy is the same as a small fleet insurance policy.
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Michael Vereecke
Commercial Lines Coverage Specialist
Michael Vereecke is the president of Customers First Insurance Group. He has been a licensed insurance agent for over 13 years. He also carries a Commercial Lines Coverage Specialist (CLCS) Designation, providing him the expertise to spot holes in businesses’ coverage. Since 2009, he has worked with many insurance providers, giving him unique insight into the insurance market, differences in ...
Commercial Lines Coverage Specialist
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.