Businesses make use of vehicles for different purposes. Some businesses make use of vehicles for deliveries while others make use of vehicles for attending to clients. In fact, most business executives are provided a company car, which they can use in business related ventures. The cars are provided by their employer. Regardless of the purpose, if the company operates a number of these vehicles at the same time, this is considered as a commercial fleet.
Things To Consider:
• Fleet Car Insurance versus single vehicle cover. Insuring multiple cars for business purposes is different from buying a policy for a single vehicle. A fleet policy is designed to cover the assets of the company for multiple drivers. The reason why this is considered would be the fact that the company cars are not always driven by the same company employee. Since most companies cannot predict which employee would drive the company cars, it is essential that the potential company drivers are evaluated and applied to each vehicle that is owned by the company.
• Higher Rates May Apply. A company may have to pay for higher rates if their drivers do not have a clean driving record. In these cases, most companies will require their drivers to have no driving convictions. A small infraction on the part of the driver and the rates that cover the entire commercial car fleet can considerably increase.
• Fleet Size and Car Types. The cost of a policy will depend on the size of the fleet and the types of cars, vans or trucks that are included. The value of the vehicles will definitely affect the cost of the premium. For cars that are larger and more expensive, the price will increase. Thus, most companies often go with cars that are practical and comfortable. This way, the rates remain reasonable.
• Insurance Rate and the Usage of the Cars. The usage of the vehicles included in the policy will also affect the rate paid. Basically, those cars that will frequently be used in high traffic areas or high crime areas will have a higher insurance rate. In general sense, the cost of the policy will also be based on the overall use of the vehicles included in the fleet.
• The Number of Miles Will Also Matter. The rates will also be affected by the number of miles that each car will be driven, which will raise costs for couriers, taxi firms and haulage companies. The mileage, however, can be an average of all the cars that are in service for a company.