Key points
- Insurance companies define “fleet” differently; some start at five power units.
- As the fleet grows, your drivers and your own loss history drive pricing more than generic rates.
- Upfitted vans, take-home use, and adding vehicles mid-term all need attention.
The jump from two or three vans to five, ten, or more changes how your commercial auto insurance works.
Your account starts standing on its own
Small commercial auto accounts are priced largely on general rating factors. As a fleet grows, underwriters lean more on your own experience: who drives, how many claims you’ve had, how severe they were, and what you’ve done about them.
Driver standards become essential
With more technicians driving, one high-risk driver can affect the whole account. Put a written standard in place:
- Check motor vehicle records before anyone drives a company vehicle, and on a regular schedule after
- Define what violations disqualify a driver
- Require drivers to report tickets, accidents, and license changes
- Apply the standard to everyone, including long-time employees and owners
Values on upfitted vans
Shelving, racks, ladder racks, and service bodies add significant value. Physical damage values should reflect the upfitted vehicle. Tools inside are a separate matter; see tools and equipment.
Take-home vans
On-call plumbers often take vans home. Underwriters will ask about it. A written policy on commuting, personal use, passengers, and who may drive keeps it clean.
Adding vehicles
Know how your policy treats newly acquired vehicles and how fast they must be reported. Give one person in the office responsibility for notifying your agent when vans are added, sold, or reassigned.
Limits and the umbrella
More vehicles on the road means more chances for a serious accident. Review auto liability limits and confirm the umbrella schedules the auto policy.
Hired and non-owned auto
As staff grows, more people use personal vehicles for estimates, supply runs, and errands. Hired and non-owned auto coverage addresses the company’s liability for those trips.