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How Trucking Fleet Insurance Can Protect Your Business Assets

by Lincoln Les

Trucking companies face unique challenges when it comes to getting fleet insurance that meets their needs. But with the right tools and strategies in place, you can secure coverage that is both affordable and comprehensive.

What constitutes a fleet varies by state and insurance company, but it is typically defined as more than five vehicles. Having one policy to manage reduces paperwork and cuts down on time spent on administrative tasks.

1. Coverage for Damage

What constitutes a fleet differs from state to state, but insurance professionals usually consider anything larger than five power units to be one. Trucking fleet insurance offers many advantages, including lower premiums and a single policy for all vehicles.

Insurance providers may look at the current and historical driving behavior of your drivers when determining their risk levels, which in turn determines premium rates. In order to keep your fleet costs down, it is important to set up robust technologies that reduce unsafe driving behaviors, such as dash cams and electronic logging devices.

Insurance firms that offer mileage-based policies typically only offer these options for fleets whose trucks’ total mileage can be verified through IFTA reports. Otherwise, it becomes difficult for them to generate enough premium income to offset expected losses.

2. Coverage for Damage to Other Vehicles

While trucking accidents are out of a fleet’s control, there are measures that can be taken to minimize risks and reduce the impact. Investing in robust technologies such as dash cams and GPS trackers can help to exonerate drivers from unfair blame, enhance coaching sessions, and keep vehicles in optimal condition.

Trucking fleet insurance is a convenient way for businesses to cover all of their company vehicles with one policy. Having all of the business vehicles under one policy makes it easier to manage, track, and renew the insurance.

Some policies offer a per unit rate which is beneficial for smaller fleets that are not expected to grow. It is also a good option for trucking companies that rely on local hauls and do not have the ability to accurately report mileage via IFTA reports.

3. Coverage for Damage to Property

While many trucking accidents are caused by factors beyond the control of the trucking company, such as driver fatigue or sleep deprivation, the company can take measures to improve their safety program and reduce the risk. This can save them money in the long run and lower their premium rates.

Insurance availability and cost rank high on most trucking operations’ lists of concerns. With the increase in demand for transportation services, it’s important to work with an insurance provider that understands fleet operations and has programs to fit their specific needs.

A scheduled vehicle reporting policy is a good option for smaller fleets that don’t have a large amount of changes in vehicles each month. This can simplify premium calculations and eliminate the need to submit IFTAs or financials. It also eliminates the need for a per unit rate.

4. Coverage for Damage to People

Trucking fleet insurance protects the company against damage to people caused by the vehicle’s collision with other vehicles, stationary objects, or other structures. This type of coverage also includes the protection of the cargo that is being transported.

The majority of small trucking fleet operations have between 10 and 20 power units. These companies require broader forms of coverage and can usually get better per unit rates than non fleet operations.

Using one policy for your entire fleet can reduce costs, save time on managing multiple policies, and make it easier to track the status of all vehicles. However, you should work with an agency that specializes in trucking insurance to ensure the right coverage is offered. This will help minimize the risk of being misclassified, which could lead to higher premium rates.

5. Coverage for Liability

Trucking fleet insurance is a type of commercial vehicle insurance that covers more than one vehicle and driver. It provides more coverage than traditional auto policies, and it can be customized to meet the needs of each business.

It can be purchased through an agent or a broker, which are professionals who help their clients understand different insurance options. They can also assist with navigating state-specific requirements and other regulations.

Purchasing fleet insurance can reduce the cost of individual policies and save hours of administrative work by eliminating the need to manage multiple policies. It can also make it easier to add new vehicles or change coverage limits with a quick call to an insurance agent. The type of vehicle that will be insured and the number of vehicles covered under a policy determine its price.

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