5 Things to Consider Before Buying Fleet Insurance

 Fleet insurance is similar to buying a single auto insurance policy, but with a few key differences. First, you’re not only purchasing coverage for the drivers and vehicles—you’re also covering the valuable merchandise inside.

Before you purchase a fleet insurance policy, consider these 5 things that may affect your rates.

Your rate will depend on how many vehicles you have, and the types of vehicles

Insurance companies take into consideration a huge number of variables when determining your rates and coverage, including the size of your fleet and the makes and models of your vehicles.

Rates also depend on how you use your vehicles, and how many miles are driven

Where your vehicles are driven and for how many miles will have a huge impact on your fleet insurance rates. Short highway trips will probably result in lower rates, but if you consistently travel through dangerous neighborhoods or areas where accidents are more common, you can expect to pay more.

You don’t always need full coverage, but you do need to protect your company

Similarly to individual auto policies, you’re not necessarily required to purchase full coverage for your fleet. It will vary from state-to-state concerning the basic level of insurance required by law, but depending on your needs, you may not need full coverage.

Of course, the basic layer of coverage required by law may not provide enough protection for your company.

You’ll have lower rates if your drivers have clean driving records

When you hire new drivers, keep in mind that their driving records will affect how much you pay for fleet insurance. Even a few minor infractions by one or two drivers can result in an overall rate increase for your entire fleet.

Safety measures can help lower your rate

Insurance companies will reward you for taking extra steps to prevent accidents with your fleet. Things like back-up cameras, anti-lock brakes, alarm systems, and anti-theft devices can help reduce your insurance rates.

Strategic planning and logistics can also decrease your chances of an accident or theft. When an insurance company sees that you’ve gone the extra mile to ensure the safe and efficient transportation of merchandise, then you’re more likely to secure a lower rate.

For more information on reducing your transportation costs, contact The Apparel Group today!

Posted: 6/19/2014 5:13:23 PM by Global Administrator | with 0 comments
Filed under: Insurance, Fleet

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