Protecting Your Fleet with the Right Insurance

Managing a fleet involves countless moving parts—fuel costs, vehicle maintenance, driver safety, and, of course, insurance. But are you overpaying by insuring each vehicle individually?

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Fleet insurance offers a smarter, more cost-effective solution by bundling all your vehicles under one comprehensive policy. Instead of tracking multiple renewal dates, coverage terms, and payments, a fleet insurance policy simplifies management, reduces costs, and provides bulk discounts.

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Whether your fleet consists of five vans or a hundred semi-trucks, a single fleet policy ensures equal coverage, easier administration, and streamlined claims processing—allowing you to focus on what truly matters: keeping your fleet running efficiently.

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How Does Fleet Insurance Work?

Fleet insurance is a single policy that covers multiple business vehicles, providing liability protection, accident coverage, and theft protection.  Instead of juggling multiple policies, renewal dates, and premium payments, fleet insurance consolidates everything into one easy-to-manage plan.

Why Fleet Insurance Makes Sense

Fleet insurance isn’t just about convenience—it’s a financially smart decision for businesses that operate multiple vehicles. Here’s why:

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• One policy for all vehicles → Easier management & cost savings.
• Lower premiums per vehicle → Insurance companies offer bulk discounts.‍
• Simplified claims process → No need to track multiple policies.

Why Does Fleet Insurance Matter?

Vehicle insurance can be expensive. On average, insuring just one vehicle costs $1,652 per year. And that’s just small vehicles. For businesses that frequently operate commercial vehicles, managing these costs is essential to sustain their bottom line. Insuring semis and other large vehicles can result in much higher premiums. These expenses can sometimes exceed $30,000 per year, impacting the overall cost of commercial operations.

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Even if your fleet consists of only two rigs, this means you could be paying upwards of $60,000 per year—if you take out individual insurance policies.

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Fortunately, fleet insurance combines all of your policies into one, allowing you to save in the following ways:

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• Time – If time is money, you could save big by choosing fleet insurance. That’s because fleet insurance entails doing the paperwork for one comprehensive insurance policy. If you take out multiple insurance policies, you’ll likely have to restart the process. And more paperwork is the last thing you want to think about as you head down the interstate.

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• Money – Lower premiums aren’t the only savings you can expect with fleet insurance. You can also save money by not having to worry about multiple payments and associated fees. With fleet insurance, you’ll only need to make one payment per month (or year). 

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• Energy – Keeping track of your drivers, vehicles, maintenance schedules, and routes can make you reach for another cup of fuel station coffee. If you also have to keep track of multiple insurance policies, you might as well buy a roastery. With fleet insurance, you don’t have to expend as much energy managing your insurance.

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• ‍Stress – Let’s face it: accidents can be stressful—especially when you have multiple vehicles. Fleet insurance can help minimize your stress by streamlining the insurance claims process. Rather than figuring out which policy covers which vehicle, you can rely on your single fleet insurance policy.

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How Much Does  Fleet Vehicle Insurance Cost?

Asking yourself, “what is fleet insurance?” often involves considering its cost. On average, fleet owners can expect to pay $1,000 per year for small business fleet vehicles and $1,500 per year for large commercial fleet vehicles.

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However, fleet insurance costs can vary widely. That’s because insurance companies take many factors into account when determining fleet policy insurance rates, including:

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• Vehicle condition & value – Newer, high-value vehicles typically have higher insurance premiums.
• Driver history – Fleets with fewer accidents and safer driving records pay lower premiums.
• ‍Fleet location & routes – Operating in high-traffic or high-theft areas increases insurance rates.

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Luckily, you’ll likely spend less on fleet insurance than you would on individual insurance, even if your policy is priced at $2,000 per vehicle.

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What’s more, some fuel cards allow you to spend on insurance-related expenses. That way, your savings aren’t just limited to the pump.

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How to Calculate Total Cost of Ownership (TCO) for Fleet Insurance

Understanding Total Cost of Ownership (TCO) helps fleet managers forecast insurance expenses and decide on the best coverage options. TCO provides a long-term financial picture, helping businesses decide whether to lease or buy fleet vehicles and how to allocate budgets efficiently.

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Step 1: Identify Fixed Insurance Costs

Fixed costs remain constant, regardless of fleet size or usage:

• Premium Payments – Base insurance costs per vehicle.
• Comprehensive & Liability Coverage – Required legal minimums.
• Driver Training & Compliance – Safety programs to lower risk.

Step 2: Identify Variable Insurance Costs

Variable costs fluctuate based on mileage, risk factors, and claims history:

• Accident Claims – Higher claims = increased premiums.
• Vehicle Wear & Tear – Older vehicles may have higher coverage costs
• Fleet Location & Routes – Insurance rates vary by state & city.

Step 3: Apply the TCO Formula for Insurance

 Example Calculation:

• Fixed Costs (annual insurance premium): $2,500 per vehicle
• Variable Costs (claims, maintenance, compliance): $1,500 per year
• TCO per vehicle per year = $4,000

Cost-Per-Mile: The Key to Understanding Your Fleet’s Insurance Costs

Tracking Cost-Per-Mile (CPM) helps businesses gauge insurance efficiency and identify cost-saving opportunities.

Example Calculation:

• Annual Insurance Costs: $50,000 for a 20-truck fleet
• Total Annual Miles Driven: 1,000,000 miles
• CPM = $0.05 per mile

If your CPM is higher than industry benchmarks, your fleet may be overpaying on insurance due to poor driver habits, outdated vehicles, or inefficient routes.

What Does Fleet Insurance Cover? 

So, what does fleet insurance cover? If you have an auto insurance policy, you’re probably already familiar with fleet insurance coverage. Fleet insurance coverage offers many of the same protections as standard auto coverage:

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• Comprehensive – Comprehensive coverage means your vehicles and any third-party vehicles are covered in the case of an accident, which means is most likely includes collision coverage. Additionally, comprehensive coverage extends to all drivers and passengers.

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• Third-party plus fire and theft – Third-party plus fire and theft coverage protects third parties from accident-related expenses. This coverage also protects your vehicles, drivers, and passengers from expenses related to fire and theft.

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• Third-party only – Third-party-only coverage covers third-party accident-related expenses. This coverage can also protect your passengers from accident-related expenses.

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Although fleet coverage is similar to standard auto coverage, specific fleet insurance packages differ. We’ll cover these different types of fleet insurance later.

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Who is Eligible for Fleet Insurance?

What is a fleet insurance policy, and are you eligible? To be eligible for a fleet insurance policy, your business needs to own or lease at least two vehicles.

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Fortunately, these vehicles don’t have to be state-of-the-art semis with fold-out beds. They can encompass a large variety of automobiles, like:

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• Cars
• Taxis
• Buses
• Pickup trucks

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Just be aware that some vehicle types require more specific fleet insurance. A taxi fleet, for example, requires "taxi fleet insurance."

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The Different Types of Fleet Insurance

Just as you can see several interesting sights as you haul freight, so too can you choose between several types of fleet insurance. That’s because not all fleets are created the same. 

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While some fleets may consist of five small sedans, others may consist of 20 large semis or different types of construction trucks. As a result, the sedan fleet isn’t going to need the same insurance coverage as the semi fleet.

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To better serve your specific fleet’s needs, many insurance companies offer the following fleet insurance packages:

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• Haulage and courier
• Minibus
• Car and van 
• Hazardous goods
• Public hire

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Let’s take a closer look at each.

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1. Haulage and Courier

Haulage and courier insurance covers large vehicles capable of hauling heavy freight. These vehicles typically include semis, but they can also include vans and larger commercial vehicles.

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In addition to fire and theft, many haulage and courier insurance policies cover the following:

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• Cargo storage
• Breakdowns
• Windscreen cover
• Liability

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Given the size and value of many hauling vehicles, haulage and courier fleet insurance is essential.

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2. Minibus

If you’ve ever seen a row of yellow school buses dotting a school parking lot, you’ve seen a minibus fleet. In short, minibus fleets consist of vehicles capable of transporting many passengers to and from destinations. While schools are notable for their minibus fleets, airports, nursing homes, and public transit services can also maintain these fleets.

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Several requirements determine whether your fleet qualifies as a minibus fleet. To qualify, your fleet must have:

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• At least three vehicles
• Between 8-17 seats per vehicle
• A PCV license (for for-profit businesses)

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If you meet these conditions, your fleet can qualify for minibus fleet insurance.

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3. Car and Van

Fleet insurance for car and van fleets is typically designed for car rental companies. These companies can sometimes have thousands of vehicles in their fleets. 

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That said, car rental companies aren’t the only businesses that can benefit from car and van fleet coverage. Any company that transports light goods or uses company vehicles for business purposes is also protected.

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As long as you have two or more vehicles in your fleet weighing under 7.5 tons, you may be able to qualify.

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4. Hazardous goods

Fleets that primarily transport hazardous goods or manage the delivery of construction materials may need a special type of fleet insurance: hazardous goods fleet insurance. That’s because hazardous goods can pose extra risks to people, property, and the environment.

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Common types of hazardous goods include:

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• Radioactive waste
• Medical waste
• Toxic chemicals

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In some cases, hazardous goods fleet insurance may not be its own fleet insurance category. Instead, it may be an additional coverage option you can add to your general coverage.

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5. Public Hire

General fleet insurance can be beneficial for businesses that always assign the same driver to each vehicle. However, if your business has multiple vehicles driven by a rotating list of drivers, you’ll need public hire fleet insurance.

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In short, public hire fleet insurance allows up to three drivers to be insured on any one vehicle. This is important because under standard fleet insurance, only the driver on a file is protected by the policy. 

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With public hire fleet insurance, one driver can operate a vehicle in the morning while another driver can operate the vehicle at night—and both drivers are covered.

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AtoB: Unlock Fleet Insurance, Unlock Possibility

Fleet insurance offers a simple, cost-effective way to maintain your fleet. What’s more, fleet insurance is easy to pay for—especially if you have a fuel card that allows you to pay for insurance-related expenses. Like an AtoB fuel card.

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Our fuel cards have no hidden fees and are accepted everywhere in the United States. That means you can save at a pump in Des Moines before covering repairs in Detroit. Talk about an easy haul.

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Whether your fleet’s journey is long or short, AtoB is with you at every mile.

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Sources:

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Commercial Truck Insurance. Average Semi Truck Insurance Cost.

‍https://www.commercialtruckinsurancehq.com/average-semi-truck-insurance-cost

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Connect. What Is Fleet Insurance?

‍https://www.fleetcompare.co.uk/what-is-fleet-insurance/

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Moneyshake. What Is Fleet Insurance?

‍https://www.moneyshake.com/car-finance-guides/business-leasing/what-is-fleet-insurance

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Policygenius. Average cost of car insurance in July 2022.

‍https://www.policygenius.com/auto-insurance/learn/how-much-is-car-insurance/

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US Insurance Agents. What’s the best fleet car insurance in 2022?

‍https://www.usinsuranceagents.com/best-fleet-car-insurance/

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