When managing business vehicles in Canada, one of the most important decisions is whether to go with fleet insurance or individual vehicle insurance. Both options offer coverage, but the structure, benefits, and cost can vary significantly. Understanding the differences helps businesses make smarter choices and avoid unnecessary expenses.
In this guide, Insurance Genie explains what fleet insurance is, how it differs from insuring vehicles individually, and which approach is better for your business.
What Is Fleet Insurance?
Fleet insurance is a commercial auto insurance policy that covers multiple vehicles under one plan. In Canada, businesses with as few as two vehicles may qualify, depending on the insurer. This policy is designed for companies that operate multiple vehicles such as trucks, vans, or service cars.
Key Features of Fleet Insurance:
- One policy for all vehicles
- Easier policy management
- Bulk premium discounts
- Coverage for owned, leased, or rented vehicles
- Adjustable coverage options
Fleet insurance simplifies administration and may lower costs compared to managing several individual policies.
What Is Individual Vehicle Insurance?
Individual vehicle insurance covers one vehicle per policy. Businesses with one or two vehicles often start with this option. It works similarly to personal auto insurance but with commercial use considerations.
Key Features of Individual Vehicle Insurance:
- One policy per vehicle
- Separate billing and renewals
- Customised coverage per vehicle
- Better suited for very small businesses or sole proprietors
While this option may seem manageable at first, it becomes less efficient as the number of vehicles increases.
Cost Comparison
One of the biggest factors in choosing between fleet and individual insurance is cost.
Fleet Insurance:
- Offers bulk discounts
- Reduces administrative costs
- Fewer fees per vehicle
- Telematics may further lower premiums
Individual Vehicle Insurance:
- Premiums calculated separately
- No bulk pricing advantage
- Higher costs for multiple vehicles
For businesses with three or more vehicles, fleet insurance is generally more cost-effective in the long term.
Administrative Efficiency
Managing multiple individual policies takes time and increases the chances of errors, missed renewals, or inconsistent coverage.
With Fleet Insurance:
- One renewal date
- Unified billing
- Centralised claims process
- Easier to add/remove vehicles
With Individual Insurance:
- Multiple renewal dates
- Separate claims
- More paperwork
Insurance Genie recommends fleet insurance for businesses that want a simplified, centralised insurance system.
Flexibility and Coverage Options
Fleet Insurance Coverage May Include:
- Third-party liability
- Accident benefits
- Comprehensive and collision coverage
- Uninsured motorist coverage
- Optional: cargo, roadside assistance, telematics discounts
Individual Insurance Coverage May Include:
- Similar types of coverage, but limited per vehicle
- May not include advanced options like telematics or fleet analytics
Fleet insurance often provides more flexibility and better customisation for businesses.
Who Should Choose Fleet Insurance?
Fleet insurance is ideal for:
- Businesses with 3 or more vehicles
- Companies with delivery trucks, vans, or work cars
- Trades, contractors, and service providers
- Businesses that lease or rent vehicles
It is especially useful for companies that plan to grow their vehicle count over time.
Who Should Choose Individual Insurance?
Individual vehicle insurance is best suited for:
- Sole proprietors with one vehicle
- Freelancers or consultants
- Businesses not planning to scale
It provides basic protection without the complexity of managing a fleet policy.
Final Verdict: Which Is Better?
For most Canadian businesses with more than two vehicles, fleet insurance is the better option. It provides cost savings, easier management, and broader coverage under a single policy.
For very small businesses or sole operators, individual vehicle insurance may be enough in the early stages.
Get Help from Insurance Genie
Whether you’re running a small business or managing a growing fleet, Insurance Genie can help you choose the right insurance solution. We offer competitive fleet insurance rates across Canada with flexible options to suit your needs.
Request a free quote today and simplify your vehicle insurance.
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