What differentiates a fleet vehicle from a commercial vehicle that does not belong to the fleet is the number of commercial vehicles. Usually, if a company owns 5 or more commercial vehicles, it has a fleet. All of these vehicles should then be classified as fleet vehicles, rather than as vehicles that do not belong to the fleet. Commercial vehicle insurance is necessary for anyone who drives as part of their business.
This is the more general of the two types of coverage. Commercial insurance offers full coverage and has different plans depending on what you want. It can be used to cover any number or type of vehicles, as long as they are used for your business. A commercial fleet is a group of vehicles that a company uses to achieve its business objectives.
Commercial fleets are comprised of fleet vehicles. Fleet insurance protects cars against damage or loss caused by fire, collisions, theft, natural disasters, and other unforeseen events. This allows you to decide if your company needs regular insurance for commercial vehicles or if you should consider fleet insurance. Fleet insurance is the policy for you if you are going to insure several vehicles and you are going to have several drivers.
When trying to understand the difference between commercial auto insurance and a fleet insurance plan, it's essential to first understand what exactly differentiates between a commercial vehicle and a private vehicle. One of the main reasons for fleet insurance is that it significantly reduces insurance costs for multiple vehicles. Therefore, in this case, you can always turn to your car fleet insurance plan to obtain coverage against damage suffered by the insured vehicle. When a company has five, ten, or even more vehicles scheduled for its business operations, it can save you a good amount of money if you decide to take out single-fleet insurance instead of different commercial auto insurance plans for different vehicles.
Several comprehensive fleet insurance packages also cover the accidental injuries of the driver of the insured commercial vehicle. However, you'll only need to contact an insurance provider, even if all your commercial vehicles are in an accident or are destroyed under fleet insurance. A fleet insurance plan is a type of vehicle insurance that, taken together, covers several vehicles in the fleet at the same time. However, if you have a new business, it makes sense to take out a third-party commercial auto insurance plan for your two or three vehicles and then switch to more comprehensive fleet insurance when you have more vehicles.