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10 Tips to Lower Fleet Insurance Costs

Posted by David Ross on Sat, Nov 05, 2022

Contact us to save on Truck Fleet insurance in Philadelphia, Erie, Pittsburgh, Allentown, Reading, Lancaster, Harrisburg and throughout PA

Commercial Truck Insurance is crucial to protect your business, employees, and fleet. Here’s why. In 2020, 4,998 large trucks and buses were involved in fatal crashes, 108,000 large trucks or buses were involved in injury crashes, and 160,000 people were injured in large truck and bus crashes, according to the Federal Motor Carrier Safety Administration (FMCSA). 

Experts report, “The average cost of a commercial truck accident that includes an injured person is $148,279. If a fatality occurs, the cost can shoot up to over $7 million.” So one significant accident could put you out of business without the proper insurance. 

Ensuring that you have adequate insurance at the lowest cost is a balancing act that an experienced insurance agent can help you achieve. 

10 Tips to Lower Fleet Insurance Costs:

    Understand Fleet Insurance

It’s essential to understand what fleet insurance does and does not cover and what affects the cost of your premiums. Fleet insurance is available to businesses with two or more business vehicles, which can include trucks, cars, and most motorized equipment. Fleet insurance covers you against bodily injury and property damage when operating a company vehicle. It saves time and money as it eliminates the need to purchase a policy for each vehicle in your fleet.

Hire Good Drivers

Drivers can be your greatest asset or your greatest liability. Hire only drivers with clean driving records – no accidents, moving violations, or license points. Cleaner driving records mean lower insurance premiums. Plus, a driver with a clean driving record is less likely to be involved in an accident, which could further increase insurance premiums. Also, some insurance companies may charge more for younger drivers.

Purchase Vehicles Strategically

When you need to expand or decrease your fleet, consider the cost of repairs if the vehicle is in an accident and how each vehicle could affect your insurance premiums.

Combine Policies

Combining multiple commercial insurance policies with one insurance company could lower insurance premiums.

Ask About Discounts

Bundling policies, installing certain safety features, paying in advance, and other discounts can help lower your insurance premiums.

Consider Increasing Deductibles

The Insurance Information Institute defines a deductible as “the amount of money that you are responsible for paying toward an insured loss. When a disaster strikes your home, or you have a car accident, the deductible is subtracted, or ‘deducted,” from what your insurance pays toward a claim.” Typically, the higher your deductible, the lower your premiums. But before increasing your deductible, remember that you will need to have the amount of the deductible available when you make a claim.

Utilize Technology

There is a great deal of technology available today, such as GPS tracking, dash cams, or fleet telematics systems (FTS), that may lower your insurance premiums and improve overall safety.

Maintain High Safety Standards

Create a culture of safety in your organization that clearly communicates a priority on safety. Do this by following a zero-tolerance policy for impaired driving, encouraging regular breaks to reduce driver fatigue, requiring pre- and post-trip truck inspections, providing regular driver safety training, and instituting incentive programs to reward safe drivers.

Maintain Vehicles

Regular maintenance of your vehicles – oil changes, inspections, tire rotations, etc. – helps minimize the risk of mechanical failures and accidents, which will help lower insurance premiums.

Compare Costs

The cost of premiums can vary from one insurance brand to another – even for similar coverage. So it’s important to work with an independent agent who can compare the cost of your coverage with several insurance carriers.

 Start Saving on Fleet Insurance Today

The independent agents at American Insuring Group work with not just one but more than 25 competing brands of insurance to ensure you pay the lowest rate for your insurance coverage.

Contact us at (800) 947-1270 or (610) 775-3848, or connect with us online and start saving on Fleet Insurance costs today!

Tags: Commercial Vehicle Insurance, truck insurance, Trucking Insurance, commercial vehicles

7 Types of Insurance Coverage for Truck Owner-Operators

Posted by David Ross on Mon, Oct 10, 2022

Trucking Insurance for Truck Driver Owner Operators in Philadelphia, Pittsburgh, Harrisburg, Allentown, Reading, Lancaster, Erie, and throughout Pennsylvania.Many drivers become owner-operators, so they can be their own boss and set their own hours, but being an owner-operator also comes with certain responsibilities, such as obtaining a USDOT number and purchasing the right Truck Insurance.

As an owner-operator, you are a self-employed truck driver with your own commercial trucking rig. You are a business owner who needs to protect your business with the right insurance. Whether you are an owner-operator under a permanent lease or an owner-operator with your own authority, there are both required and recommended types of insurance coverage you should have.

For example, interstate and intrastate carriers are required to file proof of insurance with the Federal Motor Carrier Safety Administration (FMCSA), including commercial auto liability insurance from $750,000 to $5 million (depending on what type of cargo you are transporting). Some states and contracts will also require additional types of insurance.

Beyond these requirements, what (and how much) insurance you should have to protect your business can vary. Here are seven insurance coverages owner-operators should consider:

Collision Insurance 

Collision Insurance insures against damages to your truck and other vehicles in a collision-type accident.

Comprehensive Insurance

Comprehensive Insurance covers damages or losses that are not the result of a collision—vandalism, theft, fire, etc.

Commercial Liability Insurance

Commercial Liability Insurance protects you against loss from legal liability resulting from bodily injury or property damage to another party.

Cargo insurance 

Cargo insurance protects against loss from legal liability for damage to goods or merchandise in your care and custody while in transit. It also provides coverage for things like debris removal and refrigeration breakdown

Non-trucking coverage 

Non-trucking coverage is for those things that are not directly related to the trucking operation. For example, this coverage would include an occupational accident for the truckers and insurance for trucks that drive without cargo (i.e., the cargo has been delivered, and the truck is coming back empty).

Trailer Interchange Insurance

Trailer Interchange Insurance is available under the trucker's or the motor carrier policy form that covers the insured's legal liability for damage to the trailers of others. Coverage is also available, by endorsement, under the business auto policy (BAP). Under a trailer interchange +agreement, the motor carrier in possession of the trailer is responsible for any damage to the trailer, even if the trailer is not attached to the tractor.

Uninsured/Underinsured Motorists Coverage

Uninsured/Underinsured Motorists Coverage helps pay for damage to your trick if someone hits you and does not have liability coverage.

In 2020, according to the National Safety Council (NSC), 4,842 large trucks were involved in fatal crashes, and 107,000 large trucks were involved in crashes resulting in injury. Without the right insurance, one significant accident can quickly put you out of business; therefore, it's crucial that you protect yourself, your business, and those around you with the right insurance coverage.

How to Get the Right Insurance Coverage at the Lowest Cost

At American Insuring Group, we go beyond providing you with affordable truck insurance. First, we carefully analyze the needs and risks associated with your business. Then, we match you up with the best trucking insurance policy based on a careful analysis of many competing insurance companies.

The result? You'll get the high-quality commercial insurance coverage you need at a very affordable price. Therefore, if you want the right insurance coverage at the lowest cost, call us at (800) 947-1270 or (610) 775-3848, or connect with us online.

Tags: truck insurance, commercial vehicle insuarance, Trucking Insurance, commercial vehicles

Hazardous Materials and Commercial Truck Insurance

Posted by David Ross on Sat, Dec 11, 2021

Hazardous Material Truck Insurance in Philadelphia, Pittsburgh, Reading, Allentown, Lancaster and throughout Pennsylvania

Operating large trucks imposes many risks – accidents, theft, fire, and more - but Commercial Truck Insurance is designed to help protect you, your business, as well as other drivers. For example, Commercial Automobile Insurance provides protection if a third party is injured in an accident. General Liability coverage provides protection if a third party's property is damaged. Cargo Insurance provides protection if your cargo is lost or damaged.

However, if your truck is carrying hazardous materials, you're looking at a whole new level of risk, and additional insurance may be required to protect you from those risks.

Hazardous Materials

The Federal Motor Carrier Safety Administration (FMCSA) defines hazardous materials as "those materials designated by the Secretary of the Department of Transportation as posing an unreasonable threat to the public and the environment."

That can include hazardous substances, hazardous wastes, marine pollutants, elevated temperature material, and more. Examples of hazardous materials include some battery-powered equipment, corrosives, dry ice, flammable solids, toxic substances, patient specimens, flammable solids, explosives, gases, etc.

According to the Bureau of Transportation Statistics, from 2016 to 2020, there were a total of 84,854 highway hazardous materials incidents, 34 highway hazardous materials fatalities, 623 highway hazardous materials injuries, and $286,837 in highway hazardous materials property damage.

Insurance Options

In addition to standard trucking insurance policies, truckers have additional options to protect them - some are required by law.

        • Transportation Pollution Liability – Sometimes called Environmental Insurance, Transportation Pollution Liability Insurance provides protection for materials being transported, shipped, or delivered. For example, if a cement truck rolls over and its contents end up polluting a stream.

        • Trucking Umbrella or Excess Liability — With limits up to $50,000,000, Trucking Umbrella or Excess Liability Insurance provides additional liability coverage beyond your primary liability limits on policies, such as General Liability or Commercial Auto Liability Policies.

        • Hazmat Hauler's Liability — Often required by a contract, Hazmat Hauler's Liability Insurance provides liability coverage for incidents not related to an automobile accident, such as delivering the wrong materials or products.

        • Single Deductible Endorsement — A deductible is the amount of money you agree to pay out of pocket when you make an insurance claim. Typically, if an accident causes damage to your tractor, trailer, and cargo, you could be looking at three different deductibles. A Single Deductible Endorsement allows you to have one deductible; thereby, saving out-of-pocket expenses.

        • Loading & Unloading — Hazardous materials create risks even when they aren't being transported. Loading & Unloading coverage helps protect cargo when it is being loaded and unloaded from your truck.

        • Medical Payments— Offering an added level of protection for medical bills in the event of an accident, Medical Payments Coverage pays medical and other expenses for drivers and passengers, regardless of fault.

        • Truckers Downtime Insurance – Like Business Interruption Coverage, Truckers Downtime Insurance (typically added to your physical damage policy) helps cover lost income if you cannot use your truck due to a covered loss.

        • Loan or Lease Gap Coverage – If your truck or trailer depreciates faster than what you financed it for, Loan or Lease Gap Coverage pays the difference between the actual cash value and the unpaid balance on your lease or loan if your vehicle is totaled.

        • Truck Rental Reimbursement — Just because your vehicle is damaged in an accident doesn't mean you have to stop working. Truck Rental Reimbursement coverage (typically added to physical damage policy) covers a large part of the cost to rent a replacement vehicle.

How to Save on Trucking Insurance

Not all insurance needs are alike, and not every trucker or fleet owner needs the same coverage. American Insuring Group specializes in Truck Insurance and can ensure that you have the insurance that fits your needs. Plus, as independent agents, we compare coverage and pricing from multiple insurance companies to ensure you pay the lowest premiums for quality coverage.

Give us a call today at (800) 947-1270 or (610) 775-3848, or connect with us online.

Tags: Commercial Vehicle Insurance, truck insurance, Trucking Insurance, commercial vehicles