How Does Fleet Insurance Pricing Work?
Fleet insurance uses composite rating—a single rate applied to all vehicles based on your overall risk profile. With 5+ trucks, expect to save 15-25% per vehicle compared to individual policies.
Last updated: December 2025 | Fleet pricing guide
Fleet Pricing Quick Facts
Understanding Composite Rating
Unlike individual policies where each truck is rated separately, fleet insurance uses composite rating. Here's how it works:
- All vehicles are rated together: Your entire fleet gets one blended rate based on overall risk characteristics
- Risk is averaged: A new driver on one truck is offset by experienced drivers on others
- One renewal date: All vehicles renew together, simplifying administration
- Flexible reporting: Add or remove trucks throughout the year and pay/receive credit accordingly
| Fleet Size | Per-Truck Cost | Typical Discount | Reporting |
|---|---|---|---|
| 2-4 trucks | $8,000 - $12,000 | 5-10% | Annual |
| 5-9 trucks | $6,500 - $10,000 | 15-18% | Quarterly |
| 10-24 trucks | $5,500 - $8,500 | 20-25% | Monthly |
| 25-49 trucks | $5,000 - $7,500 | 25-30% | Monthly |
| 50+ trucks | $4,500 - $7,000 | 30-40% | Monthly + Loss picks |
What Affects Fleet Insurance Rates
Fleet pricing is determined by several factors across your entire operation:
Loss History
Your 3-5 year claims history is the biggest factor. Fleets with low loss ratios (claims paid vs. premium) get the best rates.
Driver Experience
Average driver age, years of experience, and abstract quality across all drivers impacts your composite rate.
CVOR Status
A Satisfactory CVOR is essential. Conditional or Unsatisfactory ratings can add 30-50% or make coverage unavailable.
Operating Radius
Local fleets pay less than long-haul. Cross-border operations add 25-50% to your base rate.
Fleet vs. Individual Policies
| Feature | Fleet Policy | Individual Policies |
|---|---|---|
| Rating Method | Composite (blended) | Per-vehicle |
| Volume Discount | Yes (15-40%) | No |
| Administration | One policy, one renewal | Multiple policies/dates |
| Adding Vehicles | Report and pay pro-rata | New policy needed |
| Driver Flexibility | Any driver on any truck | Named drivers per policy |
Tips for Better Fleet Rates
- Implement a safety program: Documented driver training, regular vehicle inspections, and safety meetings demonstrate commitment.
- Use telematics: Fleet tracking and driver monitoring can earn discounts of 5-15%.
- Manage claims aggressively: Subrogate when possible, don't file small claims, and implement return-to-work programs.
- Hire experienced drivers: Each driver with 5+ years clean experience improves your composite rate.
- Consider higher deductibles: Moving from $5,000 to $10,000 physical damage deductible can save 10-15%.
Self-Insurance Options
Fleets with 50+ units may qualify for self-insured retention (SIR) or large deductible programs. You pay the first $25,000-$100,000 of each claim, reducing premium but increasing cash flow needs. A good option for well-capitalized fleets with strong safety records.
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Fred founded Morison Insurance in 1994, growing it from a single Hamilton office to Ontario's #1 Insurance Broker as named by IBAO. With roots dating back to 1895, the family business now serves over 80 professionals across multiple locations.