What do most insurers establish for each vehicle when dealing with a fleet policy?

In the context of fleet insurance policies, insurers typically establish a book premium for each vehicle. A book premium is an estimated figure reflecting the potential risks associated with insuring a particular vehicle within a fleet. It serves as a baseline for underwriting and assessing the total premium for the fleet.

The establishment of a book premium allows insurers to account for various factors such as the type of vehicles in the fleet, their usage, and the overall claims history of the fleet operator. This assists insurers in managing risk effectively and pricing their coverage appropriately.

While a minimum premium, a standard premium, and a reserve fund may play roles in different aspects of insurance, they do not specifically address the methodology most insurers use for fleet policies. Insurers are more likely to rely on book premiums to gauge the insurance needs of the entire fleet based on individual vehicle characteristics.