Commercial trucking insurance covers various costs if one of your trucks undergoes or causes damage. It protects you from paying large sums of money for vehicle damage, property damage, medical costs, lawsuits, and cargo loss, making it a crucial part of your business.
While you should avoid compromising coverage quality for the least expensive policy, there are some ways you can save money on your insurance costs. Understanding trucking insurance and following some helpful tips can help you reduce your monthly premiums.
The Importance of Understanding Commercial Truck Insurance
You must obtain commercial truck insurance to legally own and operate commercial trucks. Having the right policy protects your business from high costs when unexpected accidents or damages occur. An inexpensive plan may work for your budget, but it might not provide the most comprehensive coverage when you need it.
Understanding your needs and how to lower your insurance premiums allows you to communicate effectively with your insurance agent. Your agent can connect you with the best insurer for your needs when you provide important information about your fleet, driving routes, employed drivers, coverage needs, and the highest deductible your company can afford.
Commercial Trucking Premium Costs
Insurance companies set premiums by multiplying the expected crash frequency cost by the crash cost and then multiplying the result by the number of insured vehicles. Monthly premiums tend to average several hundred dollars, but several factors influence a company's premium.
The premium you pay on a truck's insurance policy depends on the truck's value, safety features, driver history, driving routes, coverage type, coverage amount, and your policy's deductible. Some of the most common insurance types include:
- Physical damage: Physical damage insurance covers damage when theft, vandalism, or natural disasters occur.
- Trucking liability: A policy including trucking liability provides physical damage coverage if a truck is involved in an accident.
- Bobtail insurance: Bobtail insurance covers trucks when they undergo damage while driving without a load.
- General liability: Insurers offer general liability coverage to cover lawsuits, property damage costs, and medical costs in the event of an accident.
- Broad form cargo: Broad form cargo coverage covers your cargo load in the event of loss or damage.
How to Lower Commercial Truck Insurance
The key to finding affordable commercial truck insurance is lowering your trucks' and drivers' accident risk levels and determining how much you can afford to pay if one of your trucks is involved in an accident. To lower your costs, consider the following tips for commercial trucking insurance:
1. Use New Trucks and Modern Equipment
Insurance companies trust newer trucks with modern technology to avoid accidents better than older trucks. Try to build a fleet of newer trucks and maintain them properly to reduce your premiums.
New, well-maintained trucks remain in good condition, and modern technologies help vehicles avoid accidents. Insurance companies value accident prevention, so you can access better premiums if your trucks are in the best condition possible.
2. Adjust Your Routes
While your commercial trucks' ages and conditions significantly impact insurance premiums, your trucking routes are also important considerations. Different routes have various risk factors, such as dense populations, frequent inclement weather, and road conditions.
Plan your drivers' routes so they can avoid as many metro areas as possible. You should also try to route your trucks outside of areas susceptible to dangerous weather conditions like rain, wind, storms, and ice.
3. Increase Your Deductible
Your deductible is the upfront cost you must pay in the event of an accident. While increasing your deductible requires paying more money anytime an accident involves one of your trucks, it decreases your premium.
Determine the highest deductible your company can afford if an accident occurs and discuss this number with an insurance agent. An agent experienced in commercial trucking insurance can educate you about your options and help you choose the best policy to lower your premiums.
4. Employ Responsible Drivers
Planning the safest possible routes and using the newest trucks possible are excellent strategies to reduce insurance premiums, but it's also essential to consider your drivers. Insurance companies carefully evaluate risk factors, and a company's employed drivers are a significant part of this.
Past driving history is a good indication of future risk levels, so insurers often examine driver trends. Employing responsible drivers can help you lower your premiums because it reduces the risk of potential accidents. While one or two minor moving violations are typically OK, hiring drivers with as few violations as possible can help you access lower premiums.
Employment history also reflects a driver's responsibility and risk level. Insurers have less confidence in drivers who change jobs frequently because it reveals they may be careless with their responsibilities. Insurance companies often favor drivers who have worked at a few companies for extended periods. They consider these drivers more experienced and reliable, which reduces the risk of potential accidents.
Verifying employment history and hiring drivers with good driving records and fewer employment gaps can help reduce your insurance premiums. Perform effective pre-employment screening to ensure you hire drivers you can trust.
5. Work With a Knowledgable Insurance Agent and Insurer
Insurance agents typically have extensive knowledge about policies and coverage, but not all agents are knowledgeable about commercial trucking insurance. Trucking companies require specific coverage for various scenarios, so it's essential to work with someone who understands your needs.
An agent who has experience working with commercial trucking insurance policies can offer more valuable guidance than other agents. Work with an agent who understands the potential damage and accident types that can occur in the trucking industry.
The right agent can help you choose the best insurer to meet your needs at affordable costs. Before choosing a policy, make sure you work with a reputable insurance company. You can check online reviews to learn about a company and its reputation. This allows you to evaluate how dependable they are and how well they can support you if damage occurs.
Purchase Dependable Trucks From Thompson Truck Source
Commercial trucking insurance is an essential part of owning a trucking company. Understanding commercial truck insurance basics and prioritizing safety can help you decrease monthly premiums.
Maintaining a reliable fleet is one of the best ways to keep your insurance premiums low. Thompson Truck Source offers a variety of high-quality trucks and parts you can trust to keep your drivers on the road and minimize risks. Our experienced technicians also offer maintenance services so you can maintain truck safety and qualify for lower insurance premiums.
Contact Thompson Truck Source to learn more about available trucks or request a service quote.