What is Fleet Insurance? A Guide for Business Owners in Canada
Does your business have 5 or more vehicles? Do you have fleet insurance?
Fleet insurance covers multiple vehicles with one policy, instead of having individual policies for each vehicle. This saves time, effort, and money, especially for businesses that own 5 or more vehicles.
Western Financial Group, a 100% Canadian company, can help you navigate your car, home, boat, and business insurance during this period of economic uncertainty.
As a Canadian insurance broker, Western helps business owners in our communities find the best deals on fleet insurance by comparing rates across leading insurers. Our goal is to ensure that you get the best price on your premium, so you can focus on what matters most - running your business.
What is fleet insurance?
Fleet insurance is for business owners who operate a minimum of 5 vehicles and use them only for their business.
This type of insurance makes it easier to cover all the business vehicles with just one policy and potentially gives you a discount for doing so.
Fleet insurance also can be customized to your needs. You can choose to insure all drivers on all vehicles or assign named drivers on your fleet policy.
Fleet insurance is also called fleet auto insurance, business fleet insurance, or motor fleet insurance.
Remember that a commercial auto policy is designed to cover one vehicle that is used for your business.
Let’s say your business has 3 vehicles and you want fleet insurance. While some insurers might have exceptions or offer policies for smaller fleets, it's not the standard. You would probably need commercial auto coverage for each of the 3 vehicles instead of fleet coverage.
What does fleet insurance cover?
Fleet insurance typically provides the following types of coverage for your business vehicles:
General liability coverage
Liability coverage protects your business against claims for third-party bodily injury or property damage caused by one of your vehicles.
Collision coverage
This kind of coverage focuses on damages caused by collisions, whether your driver is at fault or not. Under collision coverage, your vehicles can be repaired or replaced after an accident.
Comprehensive coverage
This covers non-collision incidents such as theft, vandalism, natural disasters, or animal-related accidents.
Uninsured/underinsured motorist coverage
This coverage protects your business in the event of an accident where the other driver is uninsured or doesn’t have enough coverage to pay for the damages.
Personal injury protection
This covers medical expenses for your employees or drivers in the event of an accident, regardless of who is at fault.
Cargo insurance
If your business involves transporting goods, cargo insurance can protect the items you are transporting in case of damage or loss.
How can your business benefit from fleet insurance?
If your business owns and operates 5 or more vehicles, a fleet insurance policy is probably worth considering, regardless of whether you’re an independent grocer, a contractor, or a transportation company. Here’s what fleet insurance can do for you:
Broad coverage
Fleet insurance offers protection against third-party bodily injuries, property damage, and other unexpected events such as theft, vandalism, or accidents. With this coverage, you know that your fleet is safe, and your business is shielded from potential financial losses.
Cost savings
Fleet insurance can save you money compared to insuring individual vehicles under separate commercial auto policies. When you insure multiple vehicles under one fleet policy, you may be eligible for group discounts, which can lower the overall premium.
Simplified management
Managing individual policies for each vehicle in your fleet can be time-consuming and complicated. Fleet insurance allows you to streamline the process by covering all your vehicles under one policy, making it easier to keep track of coverage, renewals, and claims.
Expanded or optional fleet insurance coverage: What’s included?
The above options are typically included in any standard fleet insurance policy. However, you can also add optional or enhanced coverage for greater protection, such as:
Roadside assistance: Covers emergency services like towing, flat tire changes, and battery jumps.
Accident forgiveness: Prevents a rate increase after your first accident.
Rental vehicle coverage: If one of your fleet vehicles is in the shop, this coverage can help with the cost of renting a replacement vehicle.
What’s the difference between fleet Insurance and commercial auto insurance?
Fleet insurance is designed for businesses that own five or more vehicles (though it may still be available to you if you have fewer than five vehicles). The main benefit of fleet insurance is that it bundles multiple vehicles under one policy, making it easier to manage or update your policies and take advantage of cost savings opportunities.
Commercial auto insurance is typically designed for businesses with fewer than five vehicles. In this case, each vehicle is insured individually, which is fine if you have two or three vehicles but can be less efficient and potentially more expensive for businesses with a larger fleet.
How much does fleet insurance cost?
There’s no one set price we can share with you, because like most kinds of insurance, the cost of fleet insurance varies depending on several factors. These are some of the most important:
Driver experience and records
The driving records and experience of your employees or drivers will impact your premium. It’s a good idea to choose drivers with a clean driving record, certificates from defensive driving courses, and several years of experience under their belts.
Vehicle type and value
The type and value of the vehicles in your fleet will also affect the cost of coverage. High-value vehicles, electric vehicles, particularly old vehicles, or specialized vehicles may require higher premiums.
Business location
The cost of your coverage might also be affected by where your business operates and where your drivers do most of their travel. Usually, urban areas have higher premiums due to the increased risk of accidents or theft.
Annual mileage
Your fleet insurance premiums may also be affected by the average number of kilometers each vehicle logs per year. To account for increased risk and time on the road, vehicles that are driven more frequently, like cross-country delivery trucks, can carry higher premiums.
Insurance history
Unfortunately, the past claims history of your business can also affect your premiums. A history of claims could lead to higher rates, so it’s better not to make claims on small incidents.
How to get the best price on fleet insurance
To get the most competitive rate for your fleet insurance, try working with an insurance broker such as Western Financial Group. As Canadian insurance brokers, we can compare quotes from multiple insurers across the country, helping you find a policy that fits your business’s needs while saving you money on premiums. We work with you to understand your specific situation and get you the perfect insurance package at the right price.
To sum up:
Fleet insurance is a great option for businesses in Canada that own multiple vehicles, especially when you own more than five. Fleet insurance provides comprehensive coverage, can save time and money compared to commercial auto insurance, and protects your business from risks on the road. We can help you compare rates across leading insurers to find right policy to meet your needs and keep your vehicles covered.
With the right fleet insurance, you’ll have peace of mind knowing that your vehicles—and your business—are well-protected.
For more information and to get started with your fleet insurance policy, contact us today! Let us help you find the best insurance solution at the best price.
