Canadian Accredited Insurance Broker (CAIB) Three Practice Exam

How many vehicles must an insured own or control to qualify for a fleet policy?

1. Two or more

2. Three or more

3. Four or more

4. Five or more

The correct answer is: Four or more

To qualify for a fleet policy, an insured must own or control four or more vehicles. Fleet insurance is designed to cover multiple vehicles under a single policy, which streamlines administration and can often result in lower premiums compared to insuring each vehicle individually. The requirement for a minimum number of vehicles is established by insurance providers to ensure that the policy is utilized by businesses or individuals who have an ongoing need for coverage across multiple vehicles, rather than for those who may have only a couple of vehicles that do not constitute a fleet. This structure allows insurers to manage risk more effectively and provide tailored coverage options for varied vehicle types and uses typically found in fleet operations.