Motor fleet insurance
A single policy covering all of a company's vehicles, priced on the fleet's loss experience rather than vehicle by vehicle, and subject to compulsory motor liability insurance.
A company that owns several dozen vehicles does not insure them one by one. The fleet policy groups them under a single contract, whose schedule changes as vehicles come and go, adjusted periodically. Its compulsory base is the motor liability required by article L. 211-1 of the French Insurance Code, which compensates victims under the 1985 Badinter law; own damage, theft, glass breakage and driver cover can be added. The pricing logic differs from personal motor insurance. The premium no longer depends on each driver's profile but on the whole fleet's loss experience over several years, read in its loss run: frequency, average cost, share of at-fault claims. The insurer reasons as for a commercial account, and renewal negotiation turns on the loss ratio. Prevention then lowers the premium directly: driver training, on-board telematics, vehicle policy. In the United States, the equivalent line, commercial auto, has posted several years of underwriting losses, driven by exceptionally large verdicts and rising repair costs. For a transport or service company, the fleet is often the largest non-life premium item.
Textbook case: a maintenance company runs 250 vans. Its loss ratio reaches 95 percent over three years; at renewal, the insurer proposes a 20 percent increase, cut to 8 percent after telematics boxes are installed and a training program reduces the frequency of minor collisions.
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