Commercial Fleet Insurance in California - How Much is it?
In 2017, there were over 28 million licensed drivers recorded in the state of California. It is almost as much as New York and Texas combined. It only means that proper coverage for every vehicle in California is essential.
Vehicles play a vital role in California businesses because they rely on delivering products, transport goods and materials to a job site. With many people on the road every day, the chance of having an accident is high and must not ignore. Furthermore, with a big fleet of vehicles, it is crucial to acquire California Fleet Auto Insurance to ensure that those involved in an accident will be taken care of.
Businesses may only need basic California commercial auto insurance if they owned a single registered auto or need to ensure a fleet of hundred trucks. According to California’s state law, it is unrelated whether you have a single vehicle or dozens of trucks. Regardless, all vehicles must be covered with commercial auto insurance in California or a commercial fleet insurance policy.
There are times that you need commercial auto insurance in California for different reasons, as long as it serves your company’s interests. But there are business owners who are unsure of the whole process to get started with it. Purchasing a fleet requires commitment, so it’s vital to do some 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.
What Is A Fleet?
In California, fleets are fifteen or more vehicles in total, which are registered in one company name. It can be considered as a fleet if you buy five or more vehicles in 12-months time. Generally, it is the insurance company’s decision regarding the fleet status. Most insurance agencies utilize the same standard, but they only differ on some relatable factors the business used in purchasing fleets.
Businesses that meet the requirements will get a fleet number. It will remain effective until the business doesn’t meet the operating requirements anymore. Aside from the fleet number, 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 Auto Insurance.
When Is California Fleet Auto Insurance Needed?
Any business vehicles that deliver goods pick up passengers and are driven by employees who need 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 a number of 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
- Employees drive company-owned cars
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 companies, taxi services, construction companies, and delivery services are some of the industries that may own a fleet of vehicles. It is more affordable to get a commercial fleet auto insurance policy than insuring a car individually.
What is Covered By Fleet Insurance?
In one policy, the fleet auto insurance will give all vehicle liability insurance coverage. 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.
To meet California‘s insurance requirements for commercial cars, including trucks, this insurance information will provide adequate liability and collision coverage. Then, you can increase additional choices like roadside assistance, liability limits, comprehensive coverage, and uninsured motorist coverage to safeguard against vandalism, theft, and other damages caused by any type of vehicle.
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 included in your policy, the more benefits you get from insurance rate discounts. In pricing, losses are a big factor. There are some other factors that 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 the needed information necessary for your business. A lot of insurance providers today offer their services for a reasonable price and provide you various coverage options too.
What Are The Benefits of California Fleet Auto Insurance?
The primary benefit of getting fleet auto insurance is the saving cost when you need to insure several vehicles. The fleet companies are eligible for rebates and incentives and will only allowable to fleet owners. In addition, when certain company services have offered an excellent fleet policy, it just limits the number of times the vehicles have to stay off the roadway when an accident happened.
This is essential because it will prevent the company from losing money due to damages and loss of the vehicle. Fortunately, fleet auto insurance services will distribute the vehicle’s risks in an even manner. It means to say that a company doesn’t need to pay more cost for each of the registered risks from any vehicular accident
Ready to Start?
Our California Fleet auto insurance experts are ready to help you out.