Commercial Fleet Insurance Coverage Explained
Commercial Fleet Insurance Coverage Defined
Commercial fleet insurance coverage is typically defined as any policy with 5 or more vehicles registered in a company name, but some insurers may require 6 or sometimes even 7+ units in order to qualify for fleet rating.
How Does Commercial Fleet Insurance Coverage Pricing Work?
Pricing for fleet insurance varies and is negotiated by the broker and underwriter on a fleet-by-fleet basis based on a number of factors including the loss ratio, vehicle usage, geography, driver history, CVOR if applicable etc.
What Type Of Vehicles Can Be Covered By Commercial Fleet Insurance
Fleet policies can include a variety of types of vehicles ex. Private Passenger, Light & Heavy Commercial.
What Are Some Differences Between Commercial Fleet Insurance Coverage & Non-Fleet Commercial Insurance Coverage?
There are 2 main differences between commercial fleet insurance coverage & non-fleet commercial insurance coverage
- Fleet pricing is negotiable. This is in contract with non-fleet pricing for commercial vehicles which is based on rigid and unchangeable rates that are filed with government regulatory bodies like the Financial Services Commission of Ontario and other provincial equivalents.
- Most commercial fleet insurance policies include (and really should include) a fleet insurance endorsement like the 21b in Ontario that helps reduce the administrative workload and potential for gaps due to timing, reporting or human error that can be associated with managing insurance for a fleet.
For More Information About Commercial Fleet Insurance Coverage Explained and/or other resources to better understand automobile insurance visit the Financial Services Commission of Ontario (or provincial equivalent) or speak to an ALIGNED Insurance Advocate today or connect with us today.
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