Insurance Savings and News You Can Use
Join the Conversation!

As a commercial vehicle driver, you probably travel on unfamiliar roads quite often, and when you’re unfamiliar with the roads, you’re more likely to get lost – an unclear turn, an unexpected accident, bad visibility.

When you get lost, it’s easy to get frustrated and impatient and make bad choices that can lead to accidents – especially when you’re on a tight schedule.

When you’re traveling on a familiar road, you know where that sharp turn is, where traffic tends to back up, and where that unexpected stop sign is located. When you’re on unfamiliar roads, you don’t have those advantages, which makes safe driving practices even more vital 

In fact, the Large Truck Crash Causation Study found that nearly one-quarter of large-truck crashes occurred when CMV drivers were unfamiliar with the roadway.

More accidents mean more injuries, which translates to higher truck insurance costs. 

Here are 3 tips to help you navigate unfamiliar roads more safely:

1 - Plan Your Route Ahead of Time

Before you get behind the wheel, take a look at a map or your GPS and have your route planned. If you’re driving along and realize you got off track, pull off somewhere safe where you can refer to your map or guidance system to regain your bearings.

It may be tempting to adjust electronic devices while you’re driving. Don’t do it! Taking your eyes off the road for even a few seconds can result in an accident, and when you’re driving a 50,000-pound truck, the chances of that accident being severe enough to cause an injury are high.

If you’re transporting hazardous materials, you should also be aware of any route restrictions or designated routes required by state and local townships.

2 - Don’t Make Knee-Jerk Decisions

You’re in the passing lane of the interstate when you notice that you’re about to pass the exit you’re supposed to take. When you realize your mistake, you may be tempted to try to turn onto that exit quickly. Don’t do it! It isn’t worth the chance of causing injury to yourself or another driver. 

According to the U.S. Department of Transportation Federal Motor Carrier Safety Administration NAFTA Safety Stats, almost 50,000 moving violations from 2004 to 2007 were classified as improper turns or improper lane changes.

If you miss a turn, get off at the next exit or go around the block instead of making a knee-jerk decision.  

3 - Communicate With Other Drivers

Let other drivers know in advance what you intend to do – even if that’s just changing lanes – by using your turn signal. A recent study reported that there are approximately 630,000 lane-change crashes annually (involving both large trucks and passenger vehicles).

Here are other ways you can try to communicate with drivers around you:

• Use your 4-way flashers if you have to pull off to the side of the road or when traffic is unexpectedly stopped in front of you.
  
  
• Toot your horn to sound an alarm and warn another driver of your presence. Please, note that we say “tooting” and not “laying on” your horn. The misuse of a horn has been known to cause road rage, but it is one of the few ways that a driver can get the attention of another driver to prevent an accident.
  
  
• Turn on your headlights. It can make your vehicle more visible especially at night or in bad weather. In fact, some trucks are programmed to have the low beam headlights on whenever the engine is running, and some states require the use of headlights when the windshield wipers are on. So make sure your headlights, turn signals, and brake lights are clean and use your headlights when appropriate.

When you’re driving on unfamiliar roads, it’s even more crucial that you exercise safe driving habits to keep yourself and those around you safe. Lower trucking insurance premiums that go with fewer accidents and claims is just icing on the cake.

Want to Save on Truck Insurance?

American Insuring Group can help you save even more on your trucking insurance. As independent agents, we’re free to shop the market for you among competing insurance carriers. So give us a call at (800) 947-1270 or (610) 775-3848 or connect with us online to start saving!

As a business owner, you wear many hats, but let’s face it, you can’t be an expert on every subject. Knowing the right questions to ask someone who is an expert is often key to running a successful business. How to find the best trucker’s liability insurance for your business is a good example.

The first step is finding an experienced and reputable insurance agent that specializes in truck insurance - like the independent agents at American Insuring Group. We’ll find you the right coverage at the best price, and we’re always happy to answer any of your questions.

 

Here are 5 questions to ask your insurance agent about Commercial Truck Insurance:

1 - What is covered - and perhaps even more important – what is NOT covered?

To understand the answer to that question you first need to understand the four basic types of liability insurance available to you:

Primary Auto Liability Insurance is the very minimum insurance you should have on your truck and is required in every state. It covers any damage or injuries to other motorists that result in an accident that is considered your fault. It’s important to make sure that you meet limit requirements on this type of insurance, and it’s often prudent to go beyond the bare minimum.

General Liability Insurance covers your truck when it is not on the road such as when you’re parked on a parking lot, stopping at a restaurant, or loading your vehicle.

Non-owned Trailer Liability & Trailer Interchange covers physical damage to a trailer that you are hauling but do not own while it’s in your possession. This type of insurance is usually not included in your primary or general liability insurance.

Motor Truck Cargo Liability Insurance covers damage to the freight or commodity that you are hauling in the event of things such as fires or accidents.

Because each policy is a little different, it’s important to ask your insurance agent lots of questions about which types of liability insurance you need to protect your assets and then go through what-if scenarios with them.

2 - If I’m in an accident, how do I submit an insurance claim?

You should submit a claim as soon as possible because the faster you file the claim, the faster it can be settled. You can contact the insurance company’s claims department directly or contact your agent to guide you through the process.

3 - If I’m in an accident, how much will my truck insurance policy pay?

This is vital information to know if you want to ensure that you’re adequately covered. You may decide to take a higher deductible to lower your premiums, but you need to understand that this will also reduce the amount you’re paid in the event of an accident. You have to then ask yourself, “Do I have enough cash on hand to cover that deductible?”

4 - Do I have to pay my entire insurance premium at one time?

Most insurance companies offer several options for payment such as making monthly installments rather than paying it all in one lump sum. However, you will save money by paying in full up front. 

5 - How can I save on premiums?

We already mentioned that you could increase your deductible to lower your trucking insurance premiums, but one of the best ways to reduce your insurance costs is to decrease the number of claims you make by carefully vetting and training your drivers. Driving records and credit scores can affect how much you pay for insurance, and well-trained drivers can reduce the number of claims, which will also affect your premiums. 

 

Take the First Step to Save on Truck Insurance Today!

Another great way to save money on your insurance premiums is to work with an independent insurance agent like American Insuring Group. We will analyze pricing and coverage among many competing insurance carriers to deliver the right coverage at the best price for your particular needs.  

Give us a call at (800) 947-1270 or (610) 775-3848 or contact us online.

You can also learn more about  your Commercial Trucking Insurance options on our website.

One of the best ways to reduce truck insurance and other costs is to reduce injuries, and one of the best ways a trucking company can do that is to ensure that ALL drivers wear seatbelts when they are operating a vehicle. Plus, it’s the law, and failure to use a seat belt can result in fines.

Pretty simple, right?

Seat Belts Save Truckers!

According to the National Highway Traffic Safety Administration (NHTSA), seat belts saved over 12,000 lives in 2001. One recent study reported that 23 percent of combination truck, single-vehicle crashes involved the driver not wearing a safety belt. There is also data that suggests that not wearing a seat belt can be indicative of other risky driving behaviors.

The good news is that the majority of people in vehicles are wearing seatbelts.  According to the NHTSA, 90% of people riding in vehicles were wearing seat belts in 2016. The one in ten who aren’t buckling up leave themselves more vulnerable to injuries and death if they’re in an accident. Younger males and commercial truck drivers are among the most likely NOT to wear a seat belt.

According to the Federal Motor Carrier Safety Administration (FMCSA), 84% of medium and heavy-duty truck and bus drivers were wearing seat belts in 2013. The rate for passengers in these commercial vehicles was even lower – 73%.

5x as Likely to Die Without Seatbelts – Need a Better Reason?

Here’s what the Center for Health Systems Research and Analysis by the University of Wisconsin found during an analysis of 13,854 crash victims found:

• Persons not wearing seat belts were 5.4 times as likely to die as those wearing belts.
• Persons not wearing seat belts were 91% more likely to be hospitalized than those wearing belts.
• Persons not wearing seat belts were 14% more likely to have EMS transport

So, you can see how not wearing a seat belt can affect your trucking insurance costs and your company’s bottom line.

 

Here are 4 myths about wearing a seat belt to share with your drivers: 

 

#1 - I don’t Need to Wear a Seat Belt if Driving a Short Distance

An accident can happen anytime. If you have to make a sudden stop, or if you’re involved in an accident, your seat belt will keep you in your seat and help to prevent injury or death that can occur from being thrown from your seat into the steering wheel, dash, or windshield or even out of the car.

#2 - Passengers don’t Need to Wear a Seat Belt

According to a 2001 NHTSA report, 60% of all passengers killed in traffic accidents were not wearing a seat belt. 

#3 - I’m Safer Without a Seat Belt

Many people think that it’s better to be thrown clear of the vehicle in the event of a crash. Statistics show otherwise. A person is four times more likely to be fatally injured when thrown from a vehicle.

In 2016, more than 200 truck occupants and drivers died when they were ejected from their cabs during an accident. Wearing a seatbelt can keep you from being dragged along the ground, being crushed under a vehicle, and being thrown through a windshield.

#4 - If I’m a Good Driver, I Don’t Need to Wear a Seat Belt

You may be an excellent driver, but unfortunately, not all drivers on the road are. Plus, there are sometimes factors beyond your control – bad weather, mechanical failure, or a tire blowout – that can cause you to have an accident.

If you want to keep your employees safer and reduce your insurance costs, make it clear to your employees that wearing a seat belt is a requirement, not an option!

 

Here’s an Easy Way to Lower Your Truck Insurance Cost!

Another way to reduce the cost of commercial vehicle insurance, including both trucks and cars, is to work with one of the independent agents at American Insuring Group.

We specialize in truck insurance and will compare the costs and features of competing insurance company policies to make sure that you’re getting the best price on reliable coverage.

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

American Insuring Group has partnered with Progressive Commercial to offer our Progressive truck insurance customers your option of $500 or free use of an ELD device!

It’s an easy and smart way to satisfy the ELD mandate at no cost to you. As the #1 Commercial Truck insurer, Progressive recognizes the costs of the ELD mandate and they have developed the Smart Haul program to make it as easy as possible on Progressive customers.

 

2 Smart Ways to Save With Smart Haul

#1 - Get Free Use of an ELD

Progressive will provide you with free use of an ELD device and pay your monthly subscription, as long as you share your driving data with them. There are no additional costs, however, you will need to return the device if you wish to opt-out or cancel your coverage.

# 2 - The Compensation Program (Get $500)

You can purchase your own Rand McNally ELD 50 or DC 200. If you are a Progressive customer and agree to share your driving data with them, they’ll pay you $100 for plugging it in, then pay an additional $100 for each quarter that the device stays plugged in, up to $500. 

Don't Delay - This is a Limited Time Offer!

Both offers are available for a limited time only, so act quickly to take full advantage of the benefits! Contact us today to learn more! 

Every time a truck driver gets into his vehicle, he’s facing the possibility of an accident, and accidents that involve big rigs have a higher probability of causing severe injury, which of course impacts the cost of trucking insurance.

It’s no surprise that the transportation industry has the highest incidence of fatal work injuries. According to the U.S. Department of Labor (DOL), there were 1,388 transportation and material moving workers fatally injured at work in 2016. That number accounted for 40% of all reported on-the-job fatalities.

Increasing safety and minimizing accidents is one of your best defenses against rising commercial vehicle insurance costs and the ever-increasing shortage of truck drivers.

Accidents and Driver Error 

Most accidents that involve big rigs are due to driver error including lack of poor judgment, speeding, using a mobile device, not being aware of blind spots, driving under the influence, and driving while fatigued. The Federal Motor Carrier Safety Administration (FMCSA) states, “Even the most well-trained, safety-conscious commercial motor vehicle (CMV) driver is at risk of engaging in driving behaviors that could lead to a crash on today’s crowded highways.”

Understanding what causes truck accidents and how to avoid them is the first step. Providing ongoing safety training for drivers and enforcing a culture of safety is the next step. It may seem like a lot of effort up-front, but the payoff will be far-reaching and long-term.

 

Here are 3 tips for safe driving leading to lower truck insurance costs:

1 - Stay Sharp/Pay Attention

Truck drivers need to pay attention to their surroundings: unexpected road conditions, distracted drivers, and drivers who don’t understand how commercial vehicles operate. FMCSA suggests scanning ahead about a quarter of a mile on interstates and one or two blocks in cities and checking the mirrors every 8-10 seconds to be aware of vehicles entering blind spots.

There is a good reason why it is illegal for commercial drivers to text while driving. According to FMCSA, “The odds of being involved in a crash, near-crash, or unintentional lane deviation are 23.2 times greater for truck and bus drivers who are texting while driving.”

Other deadly distractions include eating, drinking, map reading, or any activity that takes your focus off the road. If you need to do something while you’re driving, get off at the next exit or pull over somewhere safe. 

And do not get behind the wheel of a truck when you are tired, too ill to focus, or on medications that can make you drowsy. According to the Large Truck Crash Causation Study (LTCCS), 13 percent of commercial motor vehicle drivers were considered to be fatigued at the time of their crash, and a recent study showed that 17% were reported as having “over-the-counter drug use” when they were in an accident.

2 - Buckle Up

Buckle up; it’s the law. You’ve seen the signs, and that doesn’t just apply to passenger vehicles. FMCSAstates, “A CMV which has a seat belt assembly installed at the driver's seat shall not be driven unless the driver has properly restrained himself/herself with the seat belt assembly.” According to the FMCSA, “a safety belt is the most important in-cab safety device that will protect an occupant in the event of a sudden stop or crash.”

No matter how good of a driver you are or how uncomfortable you may think they are, you should wear a seat belt at all times.

3 - Know When to Slow Down

According to the Large Truck Crash Causation Study, 23% of large-truck crashes occur when drivers travel too fast for conditions. Some conditions to pay attention to are wet roads, reduced visibility, uneven roads, construction zones, curves, and intersections.

Drivers should reduce their speed by 1/3 on wet roads and by ½ or more on snow packed roads. Roads can be particularly slippery when it first begins to rain. Typically, manufacturers advise against using a retarder on wet or slippery roads. 

There’s a reason there are reduced speed limits at curves: 40% of speeding-related fatalities occur on curves. Braking in a curve can cause the wheels to lock up and the vehicle to skid, and trucks entering a curve too quickly can lose control and roll over due to a truck’s high center of gravity.

Work zones present many hazards such as lane shifts, moving workers, and uneven road surfaces and are particularly dangerous areas for truckers. In 2014, 30% of fatal work zone crashes involved at least one large truck. Decrease your speed and get into the correct lane well ahead of work zones. Leave extra room between vehicles, obey all work zone signs, watch for road workers, and be prepared to slow down or stop suddenly.

More Safe Driving Tips for Truckers

Check out FMCSA’s website for more safe driving tips. It just might save a life and help you save on trucking insurance as a bonus!

 

How to Save Big On Truck Insurance 

To learn more about saving on trucking insurance, give American Insuring Group a call at (800) 947-1270 or (610) 775-3848, or contact us online. We specialize in trucking insurance, and as independent agents, we will compare the cost and coverage of multiple insurance companies to ensure that you get the best price on reliable commercial vehicle insurance. Contact us today!

The transition from paper logging to electronic logging devices (ELDs) that was mandated by the Motor Carrier Safety Administration (FMCSA) late last year has been anything but smooth for many drivers.

ELD Problems

While some have reported no significant issues, many drivers have experienced frustrating problems such as service outages, unresponsive in-cab units, software glitches, and dropped Bluetooth connections.  As you’ll see below, these issues can ultimately affect your truck insurance costs if not properly addressed.

Some ELDs are not tracking location, miles, and hours accurately, and some aren’t working at all. And many drivers are finding less-than-responsive customer service representatives to help them fix the problems. 

Challenges for Drivers and Inspectors

Unfortunately, it isn’t easy to switch to a different device because many are sold with two- or three-year contracts that are expensive to get out of even if a driver is having problems resolving their issues with customer service.

The new mandate is also creating challenges for commercial vehicle inspectors because there are so many different devices and each one operates a little differently. It’s nearly impossible for inspectors to be familiar with every device. 

The ELD Mandate

Regardless of the problems drivers are experiencing, the mandate isn’t going away. As of December 18, 2017, the FMCSA requires commercial motor vehicles involved in Interstate Commerce to use an ELD.

The regulation, which includes very specific guidelines, is intended to enforce the federal hours-of-service rule. This rule states that truckers can’t be behind the wheel for more than eleven hours a day within a 14-hour workday, and must be off duty for at least ten consecutive hours.  

ELD manufacturers had two years to meet the required technical specifications, but some waited until the deadline to self-certify their units. There are now 330 devices that have been approved by the FMCSA, and all of them are self-certified. The FMCSA is not involved in the certification process.

The Consequences of Not Complying

If a driver is found to be out of ELD compliance – despite all the technical glitches that are occurring - he or she can be put out of service for ten hours. It can also affect a driver’s compliance, safety, accountability, and CSA score.

A driver’s CSA Score is used by the FMCSA to identify high-risk motor carriers. High CSA scores can result in interventions and fines. Five points are assessed to a driver’s CSA score for not having an ELD and another two points are assessed for being placed out of service. Ultimately this may affect your trucking insurance rates.

What Can You Do?

The FMCSA realizes that there are problems with some of the ELDs and is investigating malfunctioning ELDs, which could result in the removal of the device from the FMCSA’s list of registered, self-certified devices.

It’s essential that you understand your responsibilities if an ELD malfunctions.

The mandate allows you to use paper logs for up to eight days if an ELD is not working correctly. Extensions can be requested, and the FMCSA recently created an email address - eld@dot.gov - dedicated to extension requests, so you no longer have to send the request to one of many different FMCSA division offices. 

The FMCSA also updated its ELD FAQs related to questions about malfunctioning ELDs.

 

We’re Here For You – Contact Us Today!

American Insuring Group is committed to helping drivers protect their investment, their business, and their livelihood. One way we can do that is by providing helpful information like this.

But where we really shine is finding you the right insurance at the best price! That’s because our independent insurance agents are free to scour the truck insurance market among competing insurance carriers, something a single-brand insurance agency simply can’t do.

So give American Insuring Group a call at (610) 775-3848 or (800) 947-1270 or connect with us online to speak with one of our trucking insurance specialists today!

Buying or leasing a truck is a significant investment, and trucks are the lifeblood of truckers and trucking companies. For many truckers, the loss of their vehicle would mean the loss of their job and their income. For a large trucking company, the loss of a truck may not be as significant, but it would still negatively impact their business. That’s where Physical Damage Truck Insurance comes in.

Imagine: your truck is damaged in a fire. Would you have enough in savings to pay for the repairs needed to get that truck back on the road? What if your truck were totaled in an accident? Would you have enough in savings to replace it? These are things you need to consider, and for most individuals and even businesses, the answer is no, not even close.

So, thank goodness for Physical Damage Insurance, which can help keep you in business even if your truck is damaged.

What is Physical Damage Insurance?

It's pretty much exactly what it sounds like. Physical Damage Insurance helps cover the cost of repairing or replacing a purchased or leased item – in this case, your truck – in the event of a loss. There are two basic types of Physical Damage Insurance: comprehensive and collision.

Commercial Vehicle Collision Insurance

Collision insurance covers damages and loss to a vehicle that is caused by a collision with another vehicle or object, a roll, or an overturn. If your truck is totaled, collision coverage will pay you the estimated current cash value - less your deductible - to replace it. This type of coverage tends to be the more expensive of the two and has a more significant impact on the cost of your insurance if you experience a loss just because it's more likely to happen.

Comprehensive Truck Insurance

Comprehensive insurance will help you pay for the repair or replacement of your commercial vehicle if the damage is caused by something other than a collision, roll, or overturn. It covers damage caused by fire, theft, hail, vandalism, collisions with animals, etc.

Neither type of insurance will cover general wear and tear such as worn brake pads, blown transmissions, or rusted parts.

The cost of Physical Damage Insurance depends on the type of truck, the goods carried, the number of years' experience a driver has, claims history, your deductible and more.

Other Types of Physical Damage Coverage

A lender or lessor may require you to have Physical Damage insurance, but it may not be enough to cover your needs. Here are other types of Physical Damage coverage you may want to consider:

Fire and Theft with Combined Additional Coverage (CAC)
This type of physical damage coverage is a limited form of Comprehensive insurance designed especially for heavy-duty trucks. It's also known as Limited Comprehensive or Specific Perils Insurance. 

Gap Coverage
Gap coverage pays the difference between the amount of money you still owe on the lease or loan for your commercial vehicle and the actual cash value (ACV) of the vehicle. The ACV of your truck is the actual market value of the truck. Unlike personal lines of insurance, commercial insurance does not offer replacement value (the amount it would cost you to actually replace the vehicle).

Here's an example: You purchased a new vehicle for $40,000 and then drove it thousands of miles for a year or two. At this point, your vehicle has an ACV of $30,000. But what if you still owe $35,000 on your loan? Gap insurance will cover that $5,000 gap (minus your deductible).

Endorsements

• Insurance endorsements – Aka riders - are additions to existing insurance policies that change a policy's coverage to help fill holes in the basic coverage. Some endorsements available with commercial Physical Damage Insurance include the following:
• Coverage for your personal belongings
• Coverage for electronic equipment
• Payment for a rental truck while your vehicle is being repaired
• A single deductible for both truck and trailer
• Increased towing limits
• Roadside assistance

Get a Great Deal on Truck Insurance

At American Insuring Group, we carefully analyze your needs and the risks associated with your trucking business. Then, we compare the cost of that coverage among many competing insurance companies to make certain that you receive a great deal. The result: quality insurance coverage for your needs at the best price.

Call American Insuring Group at (610) 775-3848 or (800) 947-1270 to speak with one of our trucking insurance specialists or contact us online.

We probably don’t have to tell you that there is a shortage of drivers in the U.S., but have you ever considered how that shortage may affect the cost of your truck insurance premiums?

Bob Costello, the chief economist for the American Trucking Association (ATA) recently reported a 50,000-driver shortage, and if the U.S. economic climate continues to improve, that shortage will likely increase. While autonomous trucks should help ease some of that shortage, it’s going to be a while before they make any real impact.

Why the Trucker Shortage?

An improving economy is increasing retail and industrial demand, thereby growing the need for truck drivers. Earlier this year, the U.S. saw a record high demand for truck freight, which is excellent news, but it also means that the demand for truck drivers will continue to increase.

Hours of Service Rule

The Federal Motor Carrier Safety Administration’s Hours-of-Service Rule requires a driver to be off duty for 10 hours after driving for 11 hours, which means that any trip that is 300 miles or more requires the driver to stay overnight somewhere. Understandably, many drivers don’t want to be away from their families five days a week. Those who are willing to do it, usually require higher pay from an industry that has an already tight profit margin.

Aging Workforce

Approximately 46% of the general workforce is over 45 years of age; whereas, according to the American Transportation Research Institute 56% of truck drivers are over 45. This higher age is no surprise because federal law requires that drivers must be at least 21 to get an interstate commercial driver’s license and drive an 18-wheeler. That leaves a three-year gap between high school graduation and turning 21, so these new graduates can’t even consider a career in truck driving unless they’re willing to wait. Congress has talked about lowering the age to 18, but so far nothing has been done.

Solutions to the Trucker Shortage

The shortage of drivers is a huge challenge for most trucking companies. One solution is increasing driver wages, but with high cost of fuel and tight profit margins, many trucking companies are forced to look at other ways to recruit and retain drivers.

How to Lower Your Trucking Insurance Costs

One of the most significant considerations for underwriting trucking insurance is the driver, and the driver shortage makes it more challenging to hire well-qualified drivers, which often translates into more accidents and higher insurance premiums.

Here are three tips to help you keep your trucking insurance rates down:

1. Consider using FMCSA’s Pre-Employment Screening Program (PSP) to screen new hires. This program gives you information about a commercial driver’s five-year crash and three-year inspection history. The FMCSA reports that companies that use PSP “lower their crash rate by 8% and driver out-of-service rates by 17%, on average, compared to those that do not use PSP.”
2. Consider instituting an employee retention program. The longer your employees have been working for you, the lower the risk. A 45-65% driver retention rate is considered a good rate by most trucking insurers.
3. There are also things you can implement to improve your drivers’ comfort (increasing retention) and their confidence and safety (decreasing crash rates). Here are just a few ideas: Bose seats, automatic transmissions, stabilization systems, and anti-collision systems can help.
   
   

Lower Your Truck Insurance Rates With One Simple Step!

American Insuring Group may not be able to solve the truck driver shortage, but we can help you with your insurance needs. As insurance brokers, we compare the coverage and costs of multiple insurance companies to ensure that you get the right insurance for your needs at the best possible price.

So give American Insuring Group a call at (800) 947-1270 or (610) 775-3848 or click here to contact us online.

Workers Compensation Insurance for interstate trucking companies can be complicated, but it is required by most states. And, due to the dangerous nature of truck driving, it is essential for the well-being of both truck drivers and trucking companies.

Determining Workers Compensation Insurance Risks

The first challenge comes when insurance underwriters try to determine a trucking company’s risks. Each state has its own workers comp insurance base rates, requirements, and rules. To further complicate matters, sometimes a trucking company is located in one state, the truck driver resides in another, and the WC injury occurs in yet another state. While there are interstate payroll classification codes available from the National Council on Compensation Insurance (NCCI), those codes don’t apply to three highly-traveled states: California, New York, and Texas.

The 7th Deadliest Occupation

Another challenge is the dangerous nature of the occupation. With all the time truck drivers spend on the road, it’s probably no surprise that the Bureau of Labor Statistics lists truck driving as the seventh deadliest occupation. In 2016, there were 918 fatal injuries making the fatal injury rate for truck drivers 24.7 per 100,000 full-time employees.

Health and Injuries 

What may surprise you is that truck drivers also tend to be less healthy than the average worker, which makes them more prone to other types of injuries. Drivers sit for long periods of time and then have brief periods of strenuous labor as they load and unload their trucks. Many truck drivers also have unhealthy lifestyles that include a minimal amount of exercise, being overweight, and having irregular sleep habits. This causes a disproportionate number of musculoskeletal injuries compared to other occupations and poor overall physical health that often impacts employee recovery time when they are injured. 

The most common injuries truck drivers experience are vehicle accidents, slips and falls climbing in and out of the cab or trailer and on loading docks, trains, and back injuries while loading and unloading cargo, carpal tunnel, and crush injuries caused by loads falling on the driver. Many truck drivers also attribute kidney stones and hemorrhoids to their jobs but rarely claim either as an occupational injury or disease. 

Despite its complexities, here are 3 ways trucking companies can save on workers’ compensation insurance:

1. Develop a Safety Program

Take the time to develop a comprehensive safety program specific to your business and give a copy of your safety policies to every truck driver along with safety guidelines specific to eliminating injuries in drivers. Also, create a culture of safety by making it clear that every driver is expected to follow your safety policies or face the consequences and requiring every driver to attend at least one annual safety training to reinforce your safety policies.

2. Perform Drug Testing

Drug testing will not only affect your workers compensation insurance costs but also your liability insurance costs. You should test every new hire and conduct random drug testing and mandatory drug testing after an accident that causes damage to property or injury to the driver or anyone else.

3. Health & Wellness Program

An effective health and wellness program may reduce the cost of both WC and health insurance benefits. These programs can help reduce injuries and help employees recover more quickly from injuries. This may seem like an unnecessary expense, but the WC savings you could experience just by reducing obesity alone will pay for the cost of the health and wellness program.  

CAUTION - Don't Misclassify Drivers!

It’s very tempting to try to reduce your workers comp insurance costs by classifying all of your drivers as independent contractors, but the only drivers who should be classified as independent contractors are those who regularly drive for other companies. If the driver is only driving for your company and you’re designating when and where the loads are picked up and dropped off, the IRS and the state board of workers’ compensation will consider them your employees – not independent contractors.

The penalties and fines that you can face for not having WC for employees could quickly put a small or medium-sized trucking company out of business. Plus, drivers whose WC claims are denied can (and often do) sue your company for medical bills, pain and suffering (which is not paid under WC), and the loss of all wages (as opposed to the typical two-thirds of wages paid by most WC claims).

Get the Right Workers Comp Insurance for Your Business 

While workers compensation insurance for trucking companies can be complicated, the WC experts at American Insuring Group can provide affordable and reliable workers compensation to protect both your employees and your business.

Don't take chances - call us at (800) 947-1270 or (610) 775-3848, or contact us online.

If you are one of the 12 million drivers registered to operate a CMV (Commercial Motor Vehicle) in the U.S., you play a big part in keeping our highways safe – even more so than drivers of passenger vehicles.

In 2015, large trucks traveled 279.8 billion miles in the U.S. 11.9% of fatal motor vehicle accidents involved at least one large truck or bus and 7.6% of nonfatal accidents included at least one large truck or bus. The rate for fatal work zone crashes is even higher - 30%.

Taking measures to drive more safely not only makes our roads safer for everyone, but it can also help you save on commercial vehicle insurance.

What Makes Trucks More Dangerous?

The sheer mass and size of a large truck increase the likelihood of more severe damage and injuries than a passenger vehicle. The legal weight limit for a truck is 80,000 pounds (about 40 tons) – without any oversize or overweight permits. The average automobile is about two tons, and a bicycle is .75 tons.

You don’t have to be a mathematician to figure out that a 40-ton eighteen wheeler crashing into a passenger vehicle is probably going to cause a lot more damage than two passenger vehicles crashing into each other. In fact, seven out of ten people killed in vehicle accidents involving large trucks are occupants of the passenger vehicle.

In addition to the impact of a truck’s size, large trucks can also create significantly stronger wind gusts that can push smaller cars around. Taller vehicles like CMVs have a higher center of gravity, which can cause them to roll over more easily. And the higher ground clearance of many commercial vehicles can push or pull smaller cars under them during an accident.

Large trucks also have operating limitations that result in substantial blind spots, less maneuverability, and increased stopping distances.

Blind Spots

Large trucks create huge blind spots for truck drivers that limit visibility that many car drivers aren’t aware of. One study found inadequate surveillance of the truck driver caused 14% of large truck accidents.

These blind spots are located in sections of the lanes on both sides of the truck. The right side is the most dangerous blind spot because it extends further back. Other blind spots include about 30 feet behind the truck – large trucks don’t have rear-view mirrors, so drivers need to rely on side mirrors - and about 20 feet in front of trucks.

It is true that 80% of accidents that involve a truck are caused by the driver of the passenger vehicle – not the truck driver. Practicing defensive driving is the best way to avoid accidents caused by other drivers. That means being vigilant about watching your surroundings. You can do this by keeping your distance, maintaining a safe speed, staying focused and alert, and keeping your eye on the road.

Limited Maneuverability

The size and length of trucks can make taking sharp turns more challenging. When turning right, watch for vehicles on both sides before making the turn to avoid the “right turn squeeze.” Take extra care when turning in tight spaces such as truck stops and work zones.

Work zones are particularly hazardous for truck drivers. There are often lane shifts or uneven road surfaces. You may need to make a quick stop, and you have to watch for moving workers, equipment, and confused car drivers.

So be even more vigilant in work zones. Slow down, leave extra space between you and the vehicle in front of you, look ahead for changing traffic patterns, be alert to vehicles entering your blind spots, watch for road workers and flag crews, and obey all work zone signs and signals.

Increased Stopping Distance

A truck needs more stopping time than a passenger vehicle especially when it’s carrying a heavy load and when road conditions are slick with snow, ice, or rain. A fully loaded truck traveling at highway speeds needs a distance of almost two football fields to stop – and that’s when the roads are in good condition.

Being aware of the blind spots, limited maneuverability, and increased stopping distances large trucks cause is the first step to safer driving and to protecting your employees and your business. The right commercial truck insurance adds another layer of essential protection.

 

Need Truck Insurance You Can Afford? Contact Us Today 

Give the experienced agents at American Insuring Group at (800) 947-1270 or (610) 775-3848 a call, or contact us online. As insurance brokers, they can compare the prices of several insurance companies to ensure that you’re getting the best protection at the best rate. For more information on truck insurance, click below.

CLICK TO SAVE ON TRUCK INSURANCE