How does fleet insurance pricing work?
Quick Answer:
Fleet insurance uses composite rating—one rate for all vehicles based on your overall risk profile. With 5+ trucks, you typically save 15-25% per vehicle.
Understanding Fleet Insurance Pricing
Fleet insurance works differently than individual truck policies. Here's how pricing is determined.
What is Composite Rating?
Instead of rating each truck individually, fleet policies use a single rate based on your entire operation's risk profile. This averages risk across your fleet.
Fleet Size Discounts
- 2-4 trucks: 5-10% discount vs. individual policies
- 5-9 trucks: 10-15% discount
- 10-24 trucks: 15-20% discount
- 25+ trucks: 20-30% discount (experience-rated)
Factors That Determine Fleet Rates
- Loss History: Your claims experience over 3-5 years
- Fleet Size: More trucks = more negotiating power
- Driver Profiles: Average age, experience, and MVR records
- Operations: Cargo types, operating radius, industries served
- Safety Programs: Training, telematics, maintenance protocols
- CVOR Status: Fleet-wide safety rating
Fleet Reporting Options
- Monthly reporting: Pay based on actual units each month
- Quarterly reporting: Adjust coverage quarterly
- Annual: Fixed premium, adjust at renewal
Experience Rating (Large Fleets)
Fleets with 25+ trucks may qualify for experience rating, where your actual loss history directly determines your premium. Good loss experience can mean significant savings.
Tips for Lower Fleet Rates
- Implement a formal safety program
- Use telematics to monitor driver behavior
- Conduct regular driver MVR checks
- Maintain vehicles on a strict schedule
- Hire experienced drivers (3+ years preferred)
- Consider higher deductibles to lower premiums
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Use our calculator to see estimated costs for your specific operation.
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