Fleet vs. Nonfleet Trucking Insurance 

Understanding the key differences and advantages of owning an individual truck vs. an entire fleet is crucial when creating a commercial trucking insurance plan.

What Is a Fleet?

A fleet typically includes multiple company-owned vehicles, which may vary in type—from delivery trucks and taxis to passenger cars. The specific number of vehicles required to qualify as a fleet can differ. While regulatory bodies might set this number at about five, insurance providers may consider a fleet if your company operates 10 to 20 vehicles. Owning just a couple of trucks doesn’t usually meet the fleet threshold.

Insuring Single Commercial Trucks

Insurance for single trucks is more straightforward and is what most are familiar with. These policies may help cover general liabilities, physical damage and more, tailored to the individual vehicle and its driver. Factors such as the driver’s age, driving experience, past accidents or traffic violations, and the truck’s operational area and cargo type are all considered during the underwriting process. This meticulous evaluation ensures that the policy accurately reflects the risk of insuring the vehicle.

Fleet Insurance Underwriting

Fleet insurance, by nature, requires a more comprehensive underwriting process due to the more significant number of vehicles and drivers involved. Insurers typically evaluate the company’s driver turnover rate and claim history. A low frequency of claims and stable driver employment suggest a well-run operation, which is more likely to secure favorable insurance terms.

Benefits of Fleet Insurance

Fleet insurance brings several advantages, particularly in operational flexibility and cost savings. Fleet policies allow drivers to operate any vehicle within the fleet without needing individual policy adjustments, in contrast to single-vehicle policies tied to the driver’s specific history and qualifications.

Insuring multiple vehicles under a single fleet policy is often more cost-effective than individual policies, especially as the number of vehicles grows. The point at which transitioning to fleet insurance becomes financially advantageous varies. Your agent can help determine whether fleet trucking insurance may be appropriate for your operation.

Consult Experienced Agents

Whether you’re considering expanding your number of vehicles or assessing the benefits of fleet insurance for your existing operation, consulting with insurance professionals is crucial. They can provide personalized advice and help you navigate the complexities of truck insurance, ensuring you find the coverage that best fits your needs.

Contact Us

Contact Castillo Insurance & Income Tax Service in Balch Springs, Texas, for a trucking insurance consultation.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.