What Is Fleet Insurance and How Does It Work?

Business owners are always looking for new ways to make their businesses more efficient. One of the aspects of running a business that’s often overlooked is the importance of having the correct type of car insurance.

If your business requires several employees to drive company vehicles for prolonged periods of time, then you may want to consider opting for fleet insurance.

This unique type of auto insurance makes it easier for business owners to manage their coverages, policies, expenses and more.

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If you’re not familiar with fleet auto insurance, be sure to continue reading.

What is fleet insurance and how does it work in Canada?

Fleet coverage is a type of auto insurance that covers multiple commercial vehicles. Business owners can use fleet coverage to financially protect numerous types of vehicles, including:

• Cars
• Trucks
• Vans
• Heavy goods vehicles (HGVs)

Thanks to its versatility, fleet coverage is a reliable option for lots of different types of businesses. Some common examples of businesses that can benefit from using fleet coverage include:

• Construction corporations
• Home service companies (HVAC companies, plumbing companies, etc.)
• Taxi and ride-sharing companies
• Rental car companies
• Delivery services

So, how does fleet insurance work for business owners in Canada? 

Fleet coverage is somewhat different from other types of car insurance. For instance, personal auto insurance policies are registered under a person’s name. In contrast, fleet coverage policies are registered under a business name. 

By registering the policy under the company’s name, business owners are able to insure multiple vehicles simultaneously. Doing this makes it significantly easier for business owners to manage their insurance needs, allowing them to focus on other crucial aspects of their business.

How many vehicles for fleet insurance coverage in Canada?

Most car insurance companies that offer fleet coverage require businesses to have a minimum of five commercial vehicles in their fleet.

That being said, business owners should note that some insurance companies will allow business owners to insure less than five commercial vehicles. However, they will usually only do this if the business owner includes personal vehicles in the policy. This is something that you should keep in mind if you are thinking about investing in fleet coverage for your business.

What does fleet auto insurance cover in Canada?

Fleet auto insurance features the following types of mandatory coverage:

Third-party liability insurance

Third-party liability insurance is a mandatory form of auto insurance in Canada. 

This type of insurance covers third-party property damage and injuries related to an auto accident for which one of your employees is responsible.

Statutory accident benefits

Statutory accident benefits coverage is another mandatory form of insurance throughout most of Canada.

This type of insurance covers medical expenses if one of your employees is injured or killed during a car accident while operating a fleet vehicle.

Coverage against uninsured motorists

Coverage against uninsured motorists ensures that your fleet vehicle will be fixed / replaced even if the other at-fault driver didn't have insurance and that your driver will still have access to medical benefits from the Statutory Accident Benefits section of the fleet policy.

Optional forms of coverage

Business owners can also ask their insurance advisors about adding collision coverage and/or comprehensive coverage to their fleet policies. Although these forms of coverage aren’t legally required, they are incredibly beneficial and are worth considering.

Speak with your Surex insurance advisor to learn more about the benefits of adding comprehensive coverage and/or collision coverage to your fleet insurance policy.

What are the different types of fleet coverage for business owners in Canada?

There are two different types of fleet coverage that business owners can choose from: small fleet coverage and large fleet coverage.

Small fleet coverage for business owners

Small fleet policies are intended for businesses that have a small number of commercial vehicles. These types of policies are best suited for the following types of businesses:

• Small businesses
• Small restaurant chains (that offer delivery)
• Home service companies

Large fleet coverage for business owners

On the other hand, large fleet coverage policies are the ideal option for established companies that have hundreds or thousands of vehicles at their disposal. Large fleet coverage policies are the ideal choice for the following types of businesses:

• Delivery services
• Taxi companies
• Construction corporations
• Established food chains (that offer delivery)
• Driving schools

The list goes on and on; if you own a business that requires employees to drive regularly, fleet insurance may be the solution to your insurance problems.

Is fleet coverage worth it in the long run?

Yes! Fleet insurance is an invaluable resource for business owners in Canada. This type of insurance is ideal for businesses that require employees to use fleet vehicles, regardless of how big or small their fleets may be.

Instead of managing hundreds or thousands of individual policies, business owners can make their lives significantly easier by covering all of their vehicles simultaneously with fleet coverage. 

Are you looking for competitive quotes for fleet coverage in Canada? If so, be sure to contact a Surex insurance advisor at your earliest convenience.

Save on auto insurance when you team up with Surex

Whether you’re looking for your first personal insurance policy or a fleet insurance policy for your latest business endeavour, our team at Surex is here to help.

We work with several of the most reputable insurance providers in Canada. What does this mean for you as a policyholder? We’re glad you asked! Working with the top insurance providers allows us to be the “one-stop-shop” for all things insurance!

Our advisors can help you pick out the best type of coverage and address any questions or concerns you have during the quote comparison process.

Want to experience the Surex difference? Contact one of our Surex insurance advisors today to get started. With a little help from our team, you can start comparing insurance quotes in ten minutes or less!

Want to learn more about the Canadian insurance industry? Visit the Surex blog! 

The Surex blog is full of detailed articles that can answer practically any question you have about car, home, tenant or condo insurance in Canada.