When a company uses at least three vehicles for work-related purposes, that's known as a fleet in the world of auto insurance. Naturally, the fleet of vehicles will require commercial auto insurance. Commercial fleet insurance is a type of insurance plan that provides coverage for several commercial vehicles. A company is generally eligible for fleet insurance if it has 3 or more commercial vehicles used in daily operations.
The minimum number of vehicles depends on the insurer. Some insurers allow small businesses to have just 2 vehicles in their fleet. When you buy a vehicle for your business, you'll probably weigh the pros and cons of features and price. Be sure to also consider how a new vehicle affects your commercial auto insurance policy.
Like other types of vehicle insurance, the insurance broker must carefully evaluate their vehicles to determine the risks. This means that you'll spend less on insuring all your cars and trucks through commercial fleet insurance than if you took out individual commercial auto insurance plans for each vehicle.