7 Hidden Fleet Car Insurance Costs You Can Avoid


This article is brought to you by Retail Technology Review: 7 Hidden Fleet Car Insurance Costs You Can Avoid.

By James Murphy, freelance writer.

When managing a business that requires a fleet of vehicles for daily operations, it’s crucial to protect your assets with commercial fleet insurance. However, if you don’t develop a strategy for managing insurance, you could be paying much more than you need to or leaving certain areas of your business vulnerable. Read on to learn about seven of the most common hidden fleet car insurance costs you can avoid.

Type and Amount of Coverage

There are various coverage types and endorsements you can choose from for commercial fleet insurance. Bodily injury liability, property damage liability, and combined single limit coverage are typically covered by basic liability insurance. However, each state has different minimum liability coverage requirements, so it’s essential to research your state’s requirements to avoid fines.

Aside from basic liability, there are various types of insurance policies you can choose from for your fleet. From physical damage to collision and uninsured motorist coverage, make sure you select the kind that’s most relevant to your business to avoid paying for insurance you’re probably not going to need or putting yourself at risk for missing the type you need most. 

Claims and Credit History

The better your business credit history and the fewer commercial auto insurance claims your business has had in the past, the lower you should have to pay for your coverage. If you’re paying high rates due to bad credit or insurance claims in the past, check to see if you qualify for lower rates after your credit improves, or it’s been years since having an auto insurance claim.

Vehicle Type

Keep in mind that the larger your vehicles are, the more you’ll have to pay for insurance costs. Check to make sure that the rates you’re paying are consistent with your company’s vehicle sizes and, if possible, consider downsizing your vehicles to be eligible for lower coverage rates.

Cargo Type

It’s important to note that vehicles transporting hazardous materials have to pay higher insurance coverage rates. The same rules apply to vehicles that transport high-value items.

Industry Type

Companies considered to be in a high-risk industry, such as taxi companies, construction companies, and companies that deal with hazardous materials or high-value items, will be liable to pay higher premiums for commercial insurance than those in low-risk industries.

Driving Distance

Companies with fleets that make interstate trips or drive long distances can pay higher commercial car insurance premiums for coverage.

Monthly Payment Fees

An important thing that many people don’t realize about any auto insurance is that paying in monthly installments can be the costliest way to pay. In most cases, monthly payment processing comes with administrative costs and installment fees. Many insurance companies also offer savings on premiums when you pay quarterly, semi-annually, or annually.

Protect your company’s most valuable assets by developing a strategy for managing insurance that takes into account all the points mentioned above. Contact Rideshur, one of the most innovative fleet insurance companies in the industry, to learn more about choosing the right coverage for your fleet.

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