Protecting Company Cars with Fleet Insurance

Fleet insurance is a specific type of property and casualty insurance designed to insure company cars. When you use fleet insurance, the employees who drive your company-owned vehicles use your company insurance, rather than personal automobile insurance. This protects you from exposure due to gaps in private plans held by your employees. It also helps you monitor use of your vehicles and better protect the assets you spend a large amount of money on annually. 

Cover Exposure Gaps

If you allow an employee to obtain their own automobile insurance for a company car, you have less control over what that policy will ultimately look like. You may place certain requirements on the policy, such as limit and deductible requirements. You may also reimburse a large portion of the insurance, enticing your employees to purchase a good plan. In the end, though, they will have the final say in which policy they elect. This can leave coverage gaps that may come back to haunt you if a claim occurs. An employee has no incentive to repair an uncovered claim on a vehicle they do not own, and the expense will fall back on you.

Protect Your Assets

To make sure all repairs are made consistently, you must select the best coverage possible for the protection of your assets. Your employees have little to no incentive to keep their cars in good repair and maintenance when they have no ownership stake in the vehicle. This becomes your job, and it is as important as maintaining any other asset your business owns. By purchasing fleet insurance, you will be able to set maintenance schedules and repairs on your vehicles. You can be certain all necessary repairs are made in the event of an accident.

Bundle Your Insurance Costs

You can purchase fleet insurance through any business insurer. You will have to add each car individually to a list of vehicles on the policy. The cost to insure the first car will be high, but each additional car will go down in cost. The result is, once you have built up a fleet, you will have marginal costs to add one more car to the policy. Further, since you are bundling the policy with your business insurance, your cost per car will be even lower than if you individually reimbursed employees on a per car basis. 

Monitor Who is Using Your Vehicles

In order to insure your fleet, an insurance company will require a background check on the driver. If the driver has previous motor vehicle violations, the insurance company will alert you of the problem. This gives you cause to run background checks on your employees before you hire them. Further, if the employee is involved in any motor vehicle or other crime, you will be notified because the insurance company will be notified. This provides a level of monitoring that is very valuable in some industries. For example, if you own a trucking company, it is important for you to ensure your drivers are exhibiting safe roadway behavior to protect you from liability.

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