
What Should You Know Before Buying Fleet Vehicles?
Purchasing fleet vehicles can be a significant investment for any businesses. Whether you’re expanding your current fleet or starting from scratch, several important factors must be considered to ensure you make the best decision for your company’s needs.
Evaluating Your Business Needs
Consider the primary purpose of the vehicles and how they will be used in your daily operations. The type of vehicle you choose should align with your company’s specific requirements. Additionally, consider the size of your fleet.
Assessing these needs will help you determine the right mix of vehicles and avoid over- or under-purchasing.
Another essential aspect to consider is the total cost of ownership. This includes the purchase price of the vehicles and ongoing expenses such as maintenance, fuel, insurance and depreciation.
Understanding these costs clearly is essential to budget effectively and ensure the long-term sustainability of your fleet. Working with a financial advisor or fleet management expert can provide valuable insights into the total cost of ownership and help you make more informed decisions.
Complying With California Regulations
California has specific regulations and standards for purchasing and operating fleet vehicles. Ensuring your fleet complies with all relevant regulations is essential to avoid fines and legal issues.
California requires all companies using vehicles to maintain minimum amounts of commercial auto liability insurance coverage. If you finance vehicles, the lienholder can require physical damage coverage, which typically includes comprehensive and collision insurance.
It’s advisable to work closely with your insurance agent and legal advisors to stay current with the latest requirements and ensure full compliance.
Vehicle value and type, claims history, location and chosen coverages impact your rates. Before purchasing your fleet vehicles, ask your agent for insurance quotes.
Learn More
Contact Sina Insurance Agency for a commercial auto insurance quote.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.
Categories: Fleet Insurance