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What Is Fleet Insurance: 5 Essential Questions Answered for Startups

As your business grows, you’ll need to manage it carefully to ensure its longevity and profitability.

One of the most important, yet often overlooked, aspects of business management involves fleet insurance, which protects your vehicles and other assets if they are damaged or stolen due to an accident or natural disaster.

Yet because fleet insurance can get complicated and expensive, you must ask yourself five key questions on what is fleet insurance before purchasing a policy.

By doing so, you can minimise your risk while maximising your policy’s benefits. In this piece, We’ll go over five essential questions that all startups should ask before they invest in fleet insurance.

How Do Fleet Policies Differ From Personal Policies?

One of the most common mistakes small business owners make is assuming that they can get personal policies to cover their vehicles.

While some insurance companies offer hybrid plans that have elements of both personal and commercial policies, it’s important to know what’s different between them so you aren’t caught off guard if you ever need to file a claim.

It might seem like a tiny change, but coverage options and limits are often quite different for fleet plans, so it’s worth checking with your agent about what those differences are before you buy.

When Should I Consider Getting Fleet Insurance?

This question is easy to answer if you have many vehicles on your payroll. It’s a smart idea to use fleet insurance if you’re using more than three different cars or trucks regularly, either for business or company-owned personal reasons.

If you don’t have that many vehicles on your books, look at whether there are any particular models that keep breaking down.

Why Do Companies Choose To Go With Fleet Insurance?

The decision to purchase fleet insurance is difficult as it covers several different vehicles that employees own. After all, why should you need to shell out extra cash for your cars if you are only insuring yourself and your family?

However, there are a few reasons businesses choose to purchase fleet insurance for their employees and some questions you might want to ask yourself before you make up your mind. Do I have uninsured coverage?: This is an important question that should be asked at any point when purchasing any insurance.

How Does The Price Vary Based On Company Size And Type?

Many people assume that fleet insurance is a blanket term for any vehicle coverage related to transportation, like collision or property damage.

However, there are multiple types of fleet insurance, each with its requirements and exclusions. The cost of purchasing different policies can vary wildly depending on what you’re looking for;. At the same time, large trucks require extensive liability coverage, smaller trucks used primarily for delivery may not need as much.

To decide what makes sense for your company, you should consider how many vehicles you currently have in use and how many new ones you anticipate adding in upcoming years.

How Can I Save Money On My Policy?

You may be surprised to learn that there are several ways to save money on your fleet insurance. For example, if you have a small fleet and you buy all of your cars used instead of new, you can potentially save hundreds or even thousands of dollars each year.

If you go green by purchasing vehicles with hybrid engines, you can slash insurance costs. Additionally, if your startup has a spotless driving record and a low risk of accidents or fatalities, you’ll get a great discount on your policy.

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