The cars on your lot that are listed for sale are protected under their own insurance policy, but that leaves a glaring gap in coverage: the vehicles owned and operated by your dealership. These vehicles might be protected by a commercial auto insurance policy, but if you have a number of them, then you might be missing out on a crucial option that might just save you money: fleet insurance.
What is Fleet Insurance?
When you hear the words “fleet insurance” you more than likely think of trucking companies that have a plethora of tractors and trailers that they send all over the country to deliver goods. However, any business that has a number of vehicles that they use solely for company purposes can have a fleet insurance policy, as long as they meet the minimum requirements. Depending on location, this can be anything from at least two to five vehicles owned and operated by the business.
Fleet insurance is designed to simplify your commercial auto insurance needs. Unlike a standard commercial auto policy, which covers just one vehicle, you can insure all of your company cars under one policy. Basically, you’ll have one auto insurance policy instead of many to have to keep track of. This makes things easier for you.
Providing Flexibility
Even with a fleet insurance policy, not every vehicle receives the exact same amount of coverage. You can customize the overall coverages of each vehicle, as well as adjust which drivers are covered on those vehicles. This flexibility, while remaining under one policy, is what makes fleet insurance so useful to have if you have multiple company cars, trucks, or SUVs.
What’s Included in Fleet Insurance?
In general, fleet insurance includes three important types of coverage:
- Motorist Coverage – In case one of your drivers ends up in a collision with an uninsured driver, you’ll have coverage in place that will help keep this particular part of your fleet up and running without having to pay for anything out of pocket.
- Collision Coverage – If one of your drivers is in an accident caused by another driver, then you’ll have coverage in place to take care of any of their insurance shortfalls. This is particularly useful if that vehicle plays a significant role in your fleet, and you’re worried that the at-fault driver doesn’t have enough coverage to pay for all of the repairs.
- Physical Damage Coverage – This insurance coverage kicks in when your fleet vehicles sustain any type of non-collision physical damage, such as small dents from hail or minor damage from small tree branches getting blown into them during a windstorm.
Typically, a fleet insurance policy does not include things like comprehensive coverage, theft, or fire damage, although you can add these on if needed.
Have Questions? Contact Charlotte Insurance
Want to learn more about fleet insurance for your auto dealership? Contact Charlotte Insurance. Our agents can explore and explain all available options and put together the insurance coverage your business needs.