The amount of premium that you will pay for your commercial truck insurance is determined by several factors. The underwriter will examine these factors to set your premium and deductible costs. Some costs may be hidden from view by some underwriters but basically, the most important thing would be to know how to reduce your insurance bill.
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It is absolutely vital to examine the various coverages offered by your trucking insurance company. A cheap cover will not offer you sufficient protection nor is it very useful in the long-term. Getting a comprehensive cover might be a little bit pricey but will offer you what you need and a full protection. Here are some of the things that underwriters will look at when setting commercial truck insurance quotes.
• The driving record of your drivers
When determining commercial truck insurance quotes, the history and driving records of all who will be driving the trucks are carefully examined. Just like personal automobile insurance, the personal records of every driver is taken into account. Drivers with numerous violations will lead to higher premium rates because of their susceptibility to accidents which may result in damage or loss. Most insurance companies have a keen interest in checking the driver’s work history, especially for heavy-duty vehicles. If you want to lower your rates and reduce your risks, then you will need to hire experienced and high-quality drivers.
Comprehensive Commercial Trucking Insurance
• The value of your truck
A commercial truck that costs more, which has advanced features and is generally more expensive, will warrant higher premiums than your average truck. When adding new trucks to your fleet, always keep in mind the annual insurance costs that will accumulate from the type of vehicle that you buy. Each vehicle has a different risk profile which has a direct bearing on the cost of repair in the case of an accident.
• Driving distance and location
Some locations are more dangerous to drive and more prone to accidents than others. In addition, the more miles your fleet covers, the higher the chances that an accident can occur. This will have a direct effect on your insurance costs. Insurance companies will want to know the average distance that your fleet covers in a given time period and the route of travel. This will help in coming up with an insurance quote that reflects all possible risks.
• Multiple policies
The structure of your policy will ultimately determine the base rate that you will have to pay. If you own a fleet of trucks, insuring each truck separately will result in higher premium rates. On the other hand, taking a bundled policy for your fleet is always cheaper and includes policy discounts. In the long-run, taking a single policy for your fleet is much cheaper and convenient as opposed to separate policies. Insurance companies will often give discounts when you take a bulk policy. This can save you some big bucks in the long run.
• Presence of commercial general liability
If you have a general liability cover protecting your commercial truck, then you will pay less in premiums. Insurance companies do not want to be the sole bearers of your risk and that is why they provide discounts if you already have a professional liability cover or a general liability cover. This eases their burden of taking care of damage costs and loss in the case of accidents or fire.
• Safety of your fleet
When not in use, the safety level of where your vehicle is located and where you park your fleet matters a lot. If you always park your truck in the open lot as opposed to a closed yard, then the underwriter will ask for a higher rate. Commercial trucks that are parked in a garage pay even less compared to vehicles parked in public areas.
• Type and value of the load that’s being transported
If you specialize in transporting a high-value load over long distances, the insurance company will charge you more. Some goods are more costly to compensate than others, because of their high value. This has a direct effect on the premiums that you will pay.
After understanding what drives your insurance costs, discover ways to make it more budget-friendly. Dive into our guide on cost-effective commercial vehicle insurance options. Knowledge is the first step to affordability!
When looking for the right coverage, you want to meet your business requirements and offer full protection to your business and employees. Getting the best commercial truck insurance quotes is necessary if you are to save on unnecessary costs.
After understanding the factors influencing your insurance costs, it’s time to delve deeper into the details. Explore our post on cost and coverage for your commercial trucks to make informed decisions about your fleet’s protection.
Navigate insurance decisions wisely. Explore our blog post to steer clear of common commercial truck insurance mistakes. Understand the factors determining costs and make informed choices for your coverage.