Truck drivers face many things they can’t control as they drive from point A to point B delivering their cargo – inclement weather, traffic, road construction, distracted drivers, and the list goes on.
It’s good to know that there is one thing that truck drivers do have some control over, and that is their trucking insurance costs!
Small businesses and owner-operators offering trucking services invest in commercial truck insurance to protect their investment from all those things they can’t control. There are many different types of commercial truck insurance such as trailer interchange insurance, cargo insurance, and more.
The First Step
There are several factors that go into determining your insurance premiums. Each insurance company weighs each of those factors differently. Your first step to controlling your commercial truck insurance premiums is to work with a good insurance agent who specializes in truck insurance, knows what questions to ask, understands your risks, and can compare costs among competing insurance companies in order to keep your costs low.
Here are 5 Factors that Affect the Cost of Your Commercial Truck Insurance, and Ways to Lower Your Premiums:
1- Previous Claims History
If you or your company have a history of high claims rates, there’s a good chance that you’ll make multiple claims in the future. Insurance companies offer lower premiums to companies that have fewer claims.SOLUTION:
Lower the number of accidents and claims by creating a culture of safety with ongoing safety training and safety programs for your drivers.
2 - Driving Records
Insurance companies will look at the claim history and driving records of all your drivers. If they see drivers with multiple violations or accidents, you will pay higher insurance premiums.SOLUTION:
Do thorough background checks on anyone you’re considering hiring and provide ongoing safety training for your drivers.
3 – Policy Structure
Chances are you’re going to need more than one policy to protect all of your investments. Purchasing insurance policies from different insurance companies may appear to save you money, but often bundling multiple policies with one company ends up saving you money.SOLUTION:
Find an independent agency like American Insuring Group who can compare costs with several companies and analyze the results side-by-side to determine the best solution for your needs.
4 - Vehicles
A truck with a higher price tag will also be more expensive to insure. Larger and heavier vehicles may not be as easy to navigate as smaller vehicles, and in an accident are likely to cause more damage, which will also increase your premium payments.SOLUTION:
Purchase the right vehicle for the job. Don’t buy a larger or more expensive vehicle than what you need.
5 - Driving Locations
Where you drive can affect the probability of having an accident. You’re less likely to have an accident driving along a stretch of country road with little or no traffic than driving a big city street during rush hour. Also, the further you travel, the higher the chance of an accident. The higher risk of an accident, the higher the insurance premiums.Request an Annual Truck Insurance Review
Keep in mind that there is nothing more constant in life than change, and that applies in the trucking business as well – new drivers, new vehicles, changing claims rates, etc., so it’s vital to schedule an annual review with your insurance agent if you want to ensure that you have the best coverage at the best price.
Ready to Save on Truck Insurance? Call the Experts at American Insuring Group!
American Insuring Group specializes in trucking insurance, and we’re independent agents, so we’ll make sure that your commercial vehicle has the best insurance protection at the lowest price (unlike many of our competitors, we’re not locked into one solution).
So, give us a call at (800) 947-1270 or (610) 775-3848 or contact us online. Start saving today!
