Advantages Of Having Fleet Insurance

Posted on November 30, 2016

Insurance is an vital component of the transportation costs of both big and small trucking companies. Fleet insurance provides trucking companies with the major opportunity to enhance the safety of their employees, lower insurance costs and still take advantage of as much coverage as the company requires.

If theft or a motor vehicle accident renders a company vehicle useless, the loss of revenue can quickly add up and hinder the growth of the business. Having insurance plays a vital role in getting the vehicle back on the road as quickly as possible. There will also be an assigned professional to help you through the entire process. Reputable insurance companies are committed to delivering consistently outstanding service, especially when it matters most

Fleet insurance provides coverage for a group of cars, trucks and other commercial vehicles in a single policy. The risk of each commercial vehicle under this policy is managed by this type of insurance. It distributes the risk across the board to prevent you from paying more than once for each risk.

Insuring each vehicle under a separate policy would not make financial sense. Fleet insurance measures the risk of the whole fleet and evaluates the premiums according to the risks for the entire fleet instead. The risks unique to owning a high number of vehicles are catered to as well.

From insurance for a high volume of vehicles to truck insurance for smaller companies, there are flexible fleet insurance options to satisfy the requirements of any trucking company. To grow and maintain success, comprehensive and cost-effective insurance coverage is vital. Having an effective management team to guide you will make the task of handling insurance matters that much easier.

Insurance for heavy commercial vehicles requires the insurer to be aware of the operational demands associated with operating several heavy-duty commercial vehicles. Companies in the transport industry, especially trucking companies that haul vehicles over far distances on a consistent basis, need insurers who are knowledgeable about the unique risks trucking companies face.

In addition, fleet insurance companies need to consider the complexities involved in insuring commercial vehicles. For example, these vehicles are typically insured for multiple drivers and the vehicles need to be available for use for as many applications as needed.

Fleet insurance primarily provides coverage for vehicles used for the transportation of goods. As such, the policy sometimes includes coverage for cargo while the goods are in transit. However, this differs from insurer to insurer. If your insurer does not provide cargo coverage as a part of your fleet insurance package, you have the option of adding stock insurance to your business insurance portfolio. This will cover cargo while in transit and while in storage.

Fleet insurance requirements usually differ from one insurer to the next. However, there are a few basic factors that all companies will consider when deciding on a company’s eligibility for fleet insurance.

The primary factors include the types and amount of vehicles to be covered. If the trucking company is insuring different types of vehicles, the insurance premium will be different from a quote for 10 of the same kind of vehicle. The condition, age and mileage incurred by the vehicles will be important factors in the cost of fleet insurance as well.

The process involved in determining the premium rates for fleet insurance is known as fleet rating. Different skills procedures are used to come up with the fleet rating and the type of fleet is a major factor in coming up with the decision. The fleet size and claims history will also be used to come up with the fleet rating.

What Is A Trucking Fleet?

Posted on June 16, 2016

The word “fleet” comes from centuries ago when a country’s navy would be comprised of many ships or a private owner would launch several vessels to search the world for spices, cloth, and precious gems. A fleet implies several ships for commercial or military purposes rather than just a few. In later years, the term was used to refer to both naval ships and land-based vehicles operated in groups, led by a commander, such as tanks. Modern fleets also include trucks and cars like the ones run by long-haul transport companies, cleaning agencies, school districts (buses and maintenance), vehicle rental businesses, taxi firms, and large companies with many sales vehicles.

What is a Fleet in the Trucking World?

An individual or corporation buys a number of used or new vehicles for transporting goods across the province, state, or country. They take whole freight containers from shipping ports or fill their own cargo containers with goods at the airport, train station, from a warehouse, etc. The front part or cab might be fitted with a sleeping berth at the top where the driver will rest between runs unless two drivers take turns sleeping.

The firm which owns this truck and insures it has the side of each cab and/or container painted a certain color with the addition of a company name and logo to signify that it is not privately owned and belongs to a business. Trucking fleet owners are bound by certain rules as per how many hours a driver can log per run, how fast he can go, and what sorts of cargo he can carry. Computers enable them to enforce these rules.

Safety of the Fleet

It is the driver’s responsibility to maintain safe practices for the good of his boss’s reputation and to prevent him from incurring fines, but also in order to keep his job. These include obeying speed limits pertaining directly to the type of truck he is driving, not overloading the truck, and driving sober/drug-free. Bosses are supposed to subject drivers to random drug and alcohol testing, and if drivers fail they can be dismissed on the spot. The pressure is on to stay awake for many hours of sitting and staring at the road, but drivers find creative ways to manage this without taking drugs such as the use of energy drinks, sipping coffee, eating, traveling with a talkative partner, listening to music or comedy, and changing the position of their seat regularly. Getting out to move around whenever possible helps keep circulation going and improves concentration. A number of stops along any cross-country road will be designated “truck stops” because they provide adequate parking for such vehicles and are open all night.

Civic Courtesy

Fleet drivers represent their company. Most firms are obliged to post their phone number and a “How’s My Driving” sticker on the back encouraging other road users to report bad driving which is doing a firm’s reputation no good. An example would be driving too fast through a town or the use of air brakes which make a lot of noise in a small town. Multiple calls about one driver are a red flag to the employer.

Buying a Fleet Vehicle

Often the arrangement is like this: the fleet owner leases a vehicle to his employee. This person will eventually be able to purchase the truck and start his own business by running one truck or developing a fleet of his own. This arrangement is not considered financially positive in that the price agreed upon is not at or below market value but relatively high compared to a regular purchase. Drivers sometimes prefer this deal anyway because they know the truck so well. They recognize its glitches, know how to fix little issues, and they feel comfortable in their vehicle.