Fleet insurance requirements in Canada

Fleet insurance is a streamlined way for businesses in Canada to protect multiple vehicles under a single policy. Whether you run a delivery service in British Columbia, a contractor crew in Alberta, or a rideshare fleet in Ontario, this coverage is for anyone managing several vehicles used for business purposes. Beyond meeting legal requirements, fleet insurance offers better discounts, fewer administrative headaches, and custom coverages that shift with your business.

Fleet insurance is essential for risk management, bundling liability, collision, and comprehensive coverage to protect you against accidents, theft, and natural disasters. Also, it can help you save serious money by bundling several fleet vehicles under one policy.

If you run a business that operates a fleet of cars, vans, trucks, or any other type of vehicle, you can benefit from having fleet insurance. Continue reading to learn more about fleet insurance in Canada, including who needs it and how it can protect you.

What is fleet insurance?

According to the Financial Services Regulatory Authority (FSRA) of Ontario, a "fleet" refers to a group of at least five vehicles that are owned or managed together and used for business, commercial, or public purposes, and they're all covered under a single automobile insurance contract. This contact is called fleet insurance.

Business fleet insurance is a type of commercial auto insurance designed to cover business and commercial vehicles. It allows companies to insure multiple vehicles together under one policy, as opposed to purchasing separate policies for each business vehicle.

This specialized insurance type is offered to businesses of all sizes, whether you own five vans or 50 trucks. Plus, just like personal auto insurance plans, fleet insurance policies can be customized to meet your needs.

For example, you can choose to insure all drivers on all vehicles or assign named drivers to specific vehicles. Contact BrokerLink to learn more.

Who needs fleet insurance coverage?

For businesses operating multiple vehicles, fleet insurance can be a game-changer. In Canada, this type of policy is generally available to businesses that have several vehicles, whether they’re owned or leased. The exact number may vary depending on the province and insurance company. However, in most provinces, including Alberta, Ontario, and British Columbia, a fleet is defined as five or more vehicles under common ownership or management being used for business or commercial purposes. While any type of vehicle can be insured, fleet insurance is very important for companies operating in the transport and customer service sectors, such as:

• Delivery and logistics companies

• Construction companies

• Ride-share or taxi companies

• Long-haul transporters

• Moving companies

• Corporate shuttle services

Whether you run a small local courier service with five vans or a national trucking company with hundreds of semis, fleet insurance offers flexibility and peace of mind. A small business can benefit from simplified management and cost savings, while a large company can enjoy scalable protection across a vast fleet.

If you aren’t sure whether your business qualifies or which coverage suits your needs, call a commercial insurance broker at BrokerLink to discuss your options. Our experts can explain the benefits of fleet insurance and provide you with a free insurance quote.

How does fleet insurance work in Canada?

Fleet insurance is designed to simplify coverage by bundling all your business vehicles under one policy, no matter if you have five delivery vans or 200 service trucks. Instead of juggling individual policies, you get one master contract that protects multiple vehicles and drivers, making it easier to manage renewals and adjust coverage as your fleet grows.

Your policy can be set up in the name of your business, or in some cases, under a director's or owner’s name. Coverage typically includes liability, collision, and comprehensive protection. You can even add extras like roadside assistance or coverage for specialized equipment, depending on your needs. When it comes to drivers, most insurers offer two options:

Billing with fleet insurance is also generally flexible, with options like monthly and annual payment plans. While monthly payments help with cash flow, paying annually can often save you money over time on things like administrative fees that are typically charged per payment (e.g. one annual payment vs. 12 monthly payments).

It’s important to know that, according to the Insurance Bureau of Canada (IBC), businesses using vehicles for their operations must follow not only the mandatory coverage rules for fleet insurance but also federal, provincial, and territorial regulations. Make sure to check regulators like the Motor Vehicle Safety Act and Transport Canada's National Safety Code to ensure compliance.

On top of that, local government laws and additional legislation may apply, so make sure you check the regulations and requirements for where your business is.

What does fleet insurance cover in Canada?

As mentioned, fleet insurance is not all that different from commercial vehicle insurance in terms of coverage. The province your business operates in will determine the basic coverage included with your policy. Generally, fleet insurance policies will include some form of the following types of mandatory and optional coverage:

To learn more about these types of coverages or what other types your policy could benefit from, contact a BrokerLink advisor today.

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How much does business fleet insurance cost?

The cost of fleet insurance varies by the insurance company, business, and province, and insurance providers take many factors into account. Both business-specific and vehicle details can influence the cost of fleet insurance. However, there are a few key factors all businesses should be aware of when requesting a fleet insurance quote:

• The industry of your business

• Your business procedures

• The location of your business (including the specific details of where the vehicles are typically parked)

• Your employees’ or drivers’ driving records and level of experience (in years)

• The ages and genders of your business’s employees or drivers

• The number of kilometres each vehicle logs annually

• The year, make, model, and value of each vehicle in your fleet

• Insurance claims history

• Types and value of goods transported (if applicable)

• Percentage of travel abroad (i.e., to the U.S.)

• Coverage limits, types, and deductibles you choose

Why is commercial fleet insurance important to have?

A commercial auto insurance policy is designed to provide coverage for vehicles used for business purposes. This is because a personal auto insurance policy won’t cover accidents that occur while the vehicle is being driven for business purposes.

The truth is that every day, your vehicles face real-world risks like collisions, liability claims, cargo loss, and even legal exposure from third-party injuries or property damage.

The IBC states that when a vehicle, whether owned by a business or an individual, is used by employees or volunteers for work-related activities, it carries certain risks. In fact, even a single accident could leave your business facing massive out-of-pocket expenses.

Say you own a small Toronto-based courier company, and you had fleet insurance in place when one of your vans was involved in a multi-vehicle crash. Instead of paying for the damages and legal fees out of pocket, you were able to avoid a six-figure expense and keep your operations running smoothly.

Fleet insurance also offers practical benefits beyond financial protection. It simplifies your operations by consolidating paperwork and renewals into one policy, rather than managing individual vehicle policies. On top of that, many Canadian businesses see cost savings thanks to bulk pricing and customizable coverage options.

Tips for saving money on your fleet insurance policy

Did you know that 2024 was the costliest year for commercial insured losses in Canada in nearly a decade? According to the IBC, severe weather caused over $1.7 billion in commercial property damage, which includes commercial vehicles. These types of events can lead to increases in insurance premiums to help make up for the insured losses.

Fortunately, here at BrokerLink, we believe that fleet insurance should never break the bank. Rather, it should be available to businesses of all sizes and profits. To help save you money on your fleet insurance policy, the experts at BrokerLink have put together a few tips to help you find more affordable commercial auto insurance, even as commercial premiums continue to rise:

1. Enrol drivers in driving courses

Enrolling in an approved driving course, especially for young drivers, can help reduce the cost of fleet insurance. Graduating from driving school shows the insurance company that a driver is safe and responsible and at a lower risk of getting into an accident.

2. Limit employee driving age to 25 and over

The age of your employees or drivers can directly impact the cost of your fleet insurance policy. Young or new drivers can increase how much you pay for fleet insurance. Therefore, one way to keep costs down is to limit the employee driving age. For example, you may wish not to insure drivers below the age of 25. Alternatively, you can opt to have drivers under the age of 25 or 30 insured as named drivers to avoid raising your premium unnecessarily.

3. Implement a driver risk assessment process

A driver risk assessment process is an example of a business procedure that can help keep fleet insurance rates low. For example, by implementing a driver risk assessment process, you can vet drivers before hiring them to ensure they have clean driving records. The better the records of your insured drivers, the lower your premium will be.

4. Invest in vehicle safety features

Another business policy that might save you money on fleet insurance is choosing to invest in vehicles with safety features. Modern vehicles come with all kinds of risk management technologies, from emergency braking to lane assist. The more safety features your commercial vehicles are outfitted with, the less likely your drivers are to be involved in accidents.

5. Install telematics devices in vehicles

Telematics (user-based insurance or UBI) is another effective way of saving you money on fleet insurance. This technology assesses how safely your employees drive, and if they are found to be responsible drivers who obey the rules of the road, you could benefit from lower premiums. Telematics provides insurance providers with peace of mind and greater transparency.

6. Store vehicles in a safe place

Where you store your parked vehicles matters. Storing them in a safe and secure location can save you money on fleet insurance. Ideally, businesses should aim to store their vehicles in locked and covered areas, such as a security-monitored parking garage. Storing your fleet in a safe place will reduce the risk of it being stolen, which can lower your premium.

7. Increase your deductible

One final way to save money on fleet insurance is to increase your car insurance deductible. Increasing your deductible (the amount the policyholder is responsible for paying towards an insured loss) can significantly lower your fleet insurance premium.

In essence, the higher your deductible, the less risk the insurance company has to take on. However, your deductible should only be raised to an amount your business can afford. Speak to a BrokerLink expert before increasing your deductible to find out if it's the right move for you.

How do I choose the right kind of fleet insurance policy?

When purchasing fleet insurance in Canada, you will need to decide whether to purchase an any driver or named driver policy. The key difference between the two is that an any driver policy allows your employees to drive any one of your commercial vehicles, whereas a named driver policy only allows certain employees to drive certain vehicles.

Typically, any driver fleet insurance policies come with higher premiums. However, they also offer more flexibility, which might be a priority for large companies with lots of employees.

However, if you operate a small business, a named driver fleet insurance policy might make the most sense. While less flexible, they are usually more affordable, and the flexibility may not be as big an issue for small companies that can assign each employee to a specific vehicle. If you aren’t sure whether an any driver or a named driver insurance policy is right for your business, contact BrokerLink today.

Contact BrokerLink today

Do you still have questions about fleet insurance requirements in Canada? Contact BrokerLink today. Our BrokerLink insurance advisors are experts in commercial car insurance and more. We can help you find a policy that meets your business’s unique needs and budget. Get in touch today to ask any questions you may have. BrokerLink can be reached by phone, email, or in person at any of our locations across Canada.

Of course, we also invite Canadian business owners like you to take advantage of our free online quote tool that can provide you with a free commercial fleet insurance quote in minutes. You can also request your free quote over the phone or in If you’re ready to take the plunge and protect your business with fleet insurance, contact BrokerLink today. We look forward to hearing from you!

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FAQs on fleet insurance

What is the difference between a commercial auto policy and a fleet vehicle insurance policy?

The terms commercial auto insurance and fleet insurance are often used interchangeably. However, there is one key difference. While both are designed with company vehicles in mind, commercial auto insurance policies can protect one vehicle, whereas fleet insurance insures multiple commercial vehicles (usually a minimum of five). In addition, since fleet insurance is designed for multiple vehicles and drivers, it gives businesses more options when it comes to insuring their employees (e.g. the choice between an any driver or a named driver policy).

No matter what kind of auto insurance policy you choose for your business, you can rest easy knowing your vehicles will be protected. Both types of policies include similar coverages in Ontario, including third party liability coverage, accident benefits coverage, and uninsured automobile coverage. As well, both commercial auto insurance policies and fleet vehicle insurance policies can cover a wide range of vehicle types, from SUVs and vans to trucks and passenger cars.

How can I prevent my commercial auto insurance rates from rising?

One of the best ways to prevent your commercial auto insurance rates from rising is to ensure your employees operate all vehicles safely and responsibly. Clean driving records are key to low insurance premiums. If you aren’t confident in the driving skills of your team, consider enrolling employees in a defensive driving course. Another way to keep rates from rising is to implement policies that prioritize driving experience and record. For example, before hiring someone new, request a copy of their driving record to learn more about their habits and experience. You may also wish to avoid hiring employees under the age of 25 or 30 for roles that require driving.

How many vehicles can you cover with fleet insurance?

The number of vehicles covered by fleet insurance varies by the insurance company. Typically, fleet insurance can be purchased for fleets of up to 500 vehicles.

How do I get fleet insurance?

Fleet insurance is crucial for any businesses in Canada that operate vehicles. However, fleet insurance policies are complex. For this reason, we recommend speaking with a qualified broker before purchasing a policy.

For more FAQs, visit the BrokerLink FAQs page.