fleet rating

Quick Reference

A single special premium rate quoted by an insurer for covering the insurance on a number of ships or vehicles owned by one person or company, rather than considering each one individually. The fleet need not consist of identical vehicles or vessels but common ownership is essential. A common method of fleet rating is to examine the claims history of the fleet against the total premium. In this way one fleet member may have several claims (which would individually merit a premium adjustment) but if the rest of the fleet is claim-free no adjustment need be made. Insurers vary on the minimum number constituting a fleet.

Subjects: Business and Management.

Reference entries