Commercial Fleet Insurance in California – How Much Is It?
All business vehicles must be covered with commercial auto insurance in California or a commercial fleet insurance policy.
If you have several business vehicles, acquiring California Fleet Auto Insurance can help reduce your risk if damage occurs to your vehicles.
But businesses may only need basic California commercial auto insurance. It depends on your business, so it makes sense that many business owners are unsure how to get started. Purchasing a fleet requires commitment, so it’s vital to research before making any decision.
Below is some important information to consider, which can help you make a better decision, especially when choosing the right insurance company, policies, and coverages appropriate for your business.
If you have questions or want to check the current prices, you can contact us today and get all the information you need fast and free!
What Is A Fleet?
In California, fleets are fifteen or more vehicles registered in one company name. It can be considered a fleet if you buy five or more vehicles in 12 months. Generally, it is the insurance company’s decision regarding the fleet status. Most insurance agencies utilize the same standard but differ on some factors.
Businesses that meet the requirements will get a fleet number. It will remain effective until the business doesn’t meet the operating requirements anymore. In addition, businesses will also receive an ID number. They need to display it on the exterior part of the registered vehicle under one company name. These requirements must be completed so businesses can acquire California fleet insurance.
What is California Fleet Auto Insurance?
California fleet auto insurance covers the vehicles you drive for business purposes. Whether you use three vehicles (the minimum required for a fleet) or several hundred, California fleet insurance provides adequate coverage from property damage to bodily injury.
When Is California Fleet Auto Insurance Needed?
Any business vehicle that delivers goods, picks up passengers, and is driven by employees needs California Fleet Auto Insurance.
For smaller companies, in some cases, it’s advantageous to acquire California Fleet Auto Insurance when there are five or more vehicles registered in the same company. California Fleet Auto Insurance provides coverage for all vehicles under a specific company name policy, simplifying several processes.
Suppose you are not sure about getting fleet auto insurance for your business. In that case, the scenarios below might help you decide if your businesses would benefit from a fleet auto insurance policy.
- Your business leases or owns more than one fleet or a vehicle
- Your business delivers goods or picks up passengers
- Employees use their cars or any vehicles for business
- Company-owned cars are driven by employees
If you own a smaller company, you might be guessing how many vehicles compose a fleet. It varies depending on the insurance company you choose. Some will require the business to get more than three vehicles to buy a fleet insurance policy. Still, others will let this insurance for companies with two cars only, as long as it belongs to a single company name.
In many circumstances, fleet insurance is considered the most effective means of owning at least five vehicles under one company name and policy. For instance, car rental, taxi, construction, and delivery services are some industries that may own a fleet of vehicles. It is more affordable to get a commercial fleet auto insurance policy than to insure a car individually.
What is Covered By California Fleet Auto Insurance?
The fleet auto insurance will give all vehicles liability insurance coverage in one policy. Most of the time, the policy supplies provisions to let your business employees drive any kind of vehicle under your fleet. It may cover specific coverages if proven that they cause accidents. This insurance information will provide adequate liability and collision coverage to meet California‘s insurance requirements for commercial cars, including trucks.
What Else Does California Fleet Auto Insurance Cover?
It’s also worth considering the following policies to cover your business fleet in California fully:
- Uninsured/underinsured motorist coverage: Insures against personal injuries and damages that involve company vehicles.
- Medical coverage: Covers medical expenses in case employees and their passengers get injured in company-owned vehicles.
- Towing coverage: Covers the costs of roadside assistance.
- Collision coverage: Covers the costs of repairing or replacing company vehicles that get damaged in an accident.
- Loading and unloading coverage: Covers the costs arising from equipment and materials damage during transport, loading, and unloading.
- Comprehensive coverage: Covers the costs of non-collision damages such as flood, fire, or theft.
Is It Expensive To Get Fleet Insurance?
The cost of policies under fleet insurance varies according to different factors. The more vehicles you own and include in your policy, the more benefits you get from insurance rate discounts.
In pricing, losses are a big factor. Some other factors influence the price of fleet auto insurance.
It would be a great idea to talk with your chosen insurance company because they can walk you through the process and provide you with the necessary information for your business. Many insurance providers offer their services for a reasonable price and provide you with various coverage options.
How Much Does California Fleet Auto Insurance Cost?
Typically, the cost of California fleet insurance varies between $574 and $1804 per year. The price of the policy depends on numerous factors, including:
- Type of coverage
- Amount of coverage
- Claims history
- Type of vehicles
- Type of cargo
- Credit history
- Number of employees
- Type of industry
What Does California Fleet Auto Insurance Not Cover?
Besides personal vehicles, there are a few other situations that California fleet auto insurance claims don’t cover, including:
- Racing activities
- Stunting activities
- War and related perils
What Are The Benefits of California Fleet Auto Insurance?
The primary benefit of getting fleet auto insurance is saving on the costs of having to insure several vehicles. The fleet companies are eligible for rebates and incentives and will only be allowable to fleet owners. In addition, when certain company services have offered an excellent fleet policy, it limits the number of times the vehicles have to stay off the roadway when an accident happens.
This is essential because it will prevent the company from losing money due to damages and loss of the vehicle. Fortunately, CA fleet auto insurance claims will consistently distribute the vehicle’s risks. It means to say that a company doesn’t need to pay more costs for each of the registered risks from any vehicular accident.
Is Fleet Insurance Cheaper Than Regular Insurance?
Yes, usually, fleet insurance is cheaper than regular insurance. As a business owner, you will likely benefit more from insuring more than two vehicles with a comprehensive fleet policy rather than buying separate policies for each vehicle.
Does Fleet Insurance Cover Any Driver?
By purchasing fleet insurance, you can insure any named driver or all drivers.
How Many Vehicles are Considered a Fleet for Insurance?
Businesses with three or more commercial vehicles are considered a fleet and eligible for fleet insurance.
Are you still confused about California fleet auto insurance, or do you need some help getting a quote for your business? Contact us today and get all the information you need fast and for free!
Ready to Start?
Get matched with a provider that fits your needs today.