Compare Commercial Fleet Insurance Quotes

Is fleet insurance mandatory in Canada?

Auto insurance is mandatory for all vehicles in Canada, including commercial vehicles. This is to protect anyone involved in a motor vehicle accident, especially those who are not at fault.

For a small business owner in charge of five or more vehicles, fleet insurance is their best bet.

What does fleet insurance cover?

Business fleet insurance covers many similar risks as regular auto insurance.

Mandatory fleet insurance coverages

• Third party liability: This coverage pays for damages and injuries to others if you are responsible for a car accident. It also includes coverage for your legal expenses if you're sued as a result of the incident.
  
• Accident benefits: Accident benefits provide coverage for medical expenses, loss of income, or funeral costs if a collision involving a company vehicle and one of your employees is injured.
  
• Uninsured driver: If one of your employees is injured or killed by an uninsured driver or in a hit-and-run, this coverage will handle the cost of damages or losses.

Optional fleet insurance coverages

• Direct Compensation – Property Damage (DCPD): Covers damage to your vehicle and its contents when another driver is at fault, provided the accident occurs in Ontario and involves at least one other insured vehicle. DCPD is included in your policy by default, but you can purchase an endorsement to remove it.
  
• Collision coverage: This coverage helps pay for repairs or replacement of your vehicle if it's damaged or totaled in an accident with another vehicle, regardless of who is at fault.
  
• Comprehensive coverage: Comprehensive coverage protects your vehicle from damages caused by events other than collisions, such as theft, vandalism, or fire.

Who is covered under fleet insurance?

Fleet insurance provides protection for all parties authorized to use the car.

The business itself is protected against financial losses due to accidents, theft, or damage to its fleet vehicles. This includes liability coverage, which protects the company from legal claims if its vehicles cause injury or property damage to others.

Employees who drive the company’s vehicles are covered under the policy. This includes protection for medical expenses and lost wages if they are injured in an accident, as well as liability coverage if they are at fault in an accident.

If the company rents out vehicles to customers, additional coverage can be added to protect the customers. This typically includes liability coverage and may also offer options for physical damage coverage to the rented vehicle.

What kinds of businesses need fleet insurance?

Small businesses with multiple vehicles (of five or more) need fleet insurance. The type of vehicle doesn’t matter. These can be cars, trucks, and vans.

The most common types of companies that rely on fleet insurance are delivery services, moving companies, taxi and car rental agencies as well as sales representatives. Basically, any type of company that requires multiple cars on the road at the same time.

What is not covered by fleet insurance?

Fleet insurance won’t cover personal use. So, if you own a small business, fleet insurance coverage is only guaranteed when cars are in use for business purposes, like transporting goods and services.

Basic fleet insurance plans also may not be as comprehensive as drivers prefer. For example, it may not cover medical bills and lawsuits from bodily harm. You’d need to discuss what additional coverage might be helpful with a broker.

Other typical exclusions in commercial fleet insurance include:

• Unauthorized drivers: Coverage may be void if the vehicle is driven by someone not authorized or listed on the policy.
  
• Personal use: Vehicles used for personal purposes rather than business-related activities might not be covered.
  
• Wear and tear: Normal wear and tear, mechanical breakdowns, and maintenance issues are generally not covered.
  
• Intentional damage: Any damage caused intentionally by the driver or company is excluded.
  
• Unapproved modifications: Modifications to the vehicles that are not approved by the insurer can void the coverage.
  
• Excluded vehicles: Certain types of vehicles, such as motorbikes, tractors, or specialized equipment like forklifts, may be excluded from coverage.

How much does fleet insurance cost?

Fleet insurance can cost more than your average car insurance due to the number of vehicles that need to be protected.

Here are some key factors:

Business type: If you run a construction company with massive trucks, you’ll likely pay more than a floral delivery service company that uses small vans or cars. That’s because it’s more costly to repair these vehicles and they may pose a greater risk on the road.

Fleet size: If you have 15 vehicles operating within your small business as opposed to five, your coverage will be higher.

Benefit size: The level of coverage you choose will directly affect your premiums. For instance, if you add on collision or comprehensive coverage on top of basic coverage, your rate will be more expensive.

Factors that affect your fleet insurance rates

There are many factors that can influence your ​​fleet insurance rate in Ontario.

Here’s what to consider:

• Driving history: You can typically get a lower rate if your insurance company trusts your drivers. Look for employees with good driving records and years of experience on the road.
  
• Employee’s age and gender: Just like personal auto insurance, age and gender your drivers will affect commercial fleet insurance. Younger drivers and male drivers typically pose a greater risk behind the wheel.
  
• Type of vehicle: If you have a team of drivers hitting the road with expensive SUVs, your insurance rate will likely be higher than if they were driving smaller, cheaper models. That’s because insurance will need to cover any repair costs for collisions.
  
• Kilometres logged: If your drivers spend a lengthy amount of time on the road, it will increase their chances of collision.
  
• Location: Certain locations may also pose a higher risk, as well as where vehicles are parked. Without a safe and secure parking location, for example, your vehicles could be exposed to higher instances of theft.
  
• Risk management programs: Companies that have risk management programs that include vehicle maintenance and driver training may be eligible for discounts.

If you’re looking for the cheapest fleet insurance rate, keep these in mind when buying vehicles and hiring employees.

How to get the cheapest fleet insurance quotes

There are a few actions you can take to get the lowest fleet insurance quote possible. Consider trying the following:

• Shop around: Use rates comparison sites or an insurance broker to find the best deal possible.
  
• Turn to telematics: Telematics, also known as GPS vehicle tracking, is used by many commercial and government fleets. Telematics software lets you track information about your employees’ driving habits. If you can provide to your insurance company that your staff consistently drive safely, you’ll likely get a lower quote.
  
• Set up fleet dash cams:  Installing your fleet with dash cams is another way to lower costs because they’ll catch mistakes your driver’s make, as well as good driving behaviour. If facing a collision claim, dash cams can prove your drivers weren’t at fault. The best way to keep your insurance quotes low is by avoiding accidents in the first place.

Following these tips should get you a good deal.