Shopping for Fleet Vehicle Coverage - How it Impacts your Commercial Insurance Policy
“With great power comes great responsibility -Ancient Adage First Century BC”
and a higher premium…..?
All kidding aside, shopping for vehicles for your company can be exhausting, not to mention how the new or used vehicle can impact your Commercial Insurance Policy. Before you buy your next company vehicle, you’ll definitely want to read this!
Look out for good quality, used fleet vehicles, this will help keep your insurance rates down. The less you spend on a vehicle, the lower you pay in premiums. Lighter-weight trucks cost less to insure on a commercial fleet vehicle policy as well. Commercial trucks are a higher risk than passenger vehicles and with higher risks come higher premiums.
Here’s a breakdown of Truck Classes to help you choose the right vehicle:
Panel vans, pick-ups, parcel vans, refrigerated trucks and flatbeds are considered Light Trucks, up to 10,000 pounds.
Mid-sized refrigerated trucks, stake beds and box trucks are considered Medium Trucks,
10,001-20,000 pounds and lastly, beverage trucks, farm trucks and grain trucks are considered Heavy Trucks, 20,001-45,000 + pounds.
Then we have a Trailer category. These include small service or utility trailers, flatbed trailers, refrigerated and specialty trailers.
Commercial truck insurance premiums increase with the size and weight of trailer.
One more thing to consider: Intended use of vehicle also impacts the cost of commercial fleet insurance. For example, service-oriented vehicles, such as trucks or vans used by plumbers or HVAC contractors, are the least expensive to insure. Next, retail use vehicles such as florist or dry-cleaning delivery vans, then trucks/vans that deliver goods to other businesses cost the most to insure.
Massachusetts Fleet Vehicle Insurance Specialists
At Pearson Wallace Insurance LLC in Pittsfield, MA, we can help you with your next commercial fleet policy. We currently service around 40 companies a year with their Fleet Insurance all across New England and New York. We have competitive sources and markets to choose from and our staff is ready and able to help you with a quote today!