Factors That Influence Your Commercial Trucking Insurance Cost

As an owner or owner-operator of a trucking business or as the driver of a truck itself, it’s important for you to get semi truck insurance to protect your vehicle and your business.

Hauling cargo for long hours and across state lines carry lots of potential risks and your insurance will help your business survive in case of massive costs that come with accidents and possible lawsuits.

Whether your cargo is precious or not is beside the point. You will want to set a safety net that will catch you in case you fall.

Now it’s pointless to hide the fact that trucking insurance is not exactly cheap. If you are a relatively small business, that cost of paying premiums is definitely something that your ledgers will feel.

But the expense will be definitely worth it when you get into accidents that produce injuries and damage to property.

How Insurance Providers Decide on the Premiums

The insurance premium is your payment for coverage in case accidents and other unfortunate events occur. At its minimum, your policy will cover the cost of medical bills and damage to the other person’s vehicle.

It’s important to prioritize setting aside a budget for paying your premiums on time. If you don’t pay regularly, your insurance provider may cancel your policy and you definitely don’t want that to happen.

The amount of premium you will pay is dependent on several factors. This is why you should get at least three quotes from different commercial truck insurance companies so you can compare rates effectively and make sure you won’t overpay.

Naturally, those who have a strong likelihood of filing claims will get a much higher premium There are other factors at play here, which include the following:

Age and Experience of Truck Drivers

Younger drivers, usually aged below 25 years, pose a higher risk compared to older drivers with lots of truck driving experience. Older drivers best know how to avoid accidents that come with handling different kinds of trucks and weather conditions.

In the same manner, drivers who are too old are also considered a huge risk, especially those who are past 60 years old. Some insurance companies can be more flexible with this one — as long as the driver or trucker has a great medical record, then it’s still good to go.

If you have no choice but to use a younger driver, you can arrange a workaround and let him drive during the day only or have a more experienced driver or truck driver accompany him on his first few trips.

Driver’s Accident History

For obvious reasons, drivers with several accident experiences do not look good on paper. This is why drivers with cleaner records, with fewer accidents and violations, are accorded a lower premium by the insurance provider.

History of Previous Coverage

The insurance provider will check if you already had a policy in the past and if it was canceled. They will check for reasons behind the cancellation. 

If they discover that you were not so diligent in paying your past premiums or have underwriting issues, they will give you a higher premium to pay — that is if they even give you a policy at all.

Years of Operation

Insurance companies are more careful when it comes to dealing with new trucking companies, as they are all too aware of the growing pains that come with newbies. Just like in the driver age, a trucking business that has been operating longer is considered a lesser risk compared to the new business.

Driving Locations

You will be charged with higher premiums if your trucks go through routes that are considered risky. It could be bad road conditions, delicate infrastructure, population density, and extreme weather conditions.

Driver’s Employment History

Insurance providers prefer drivers who have been working for different companies since they are looking at the experience factor. The more familiar that a driver is with specific equipment and routes, the less likely he will get into accidents.

Type of Cargo

Factors such as the value of the cargo and nature of cargo will carry considerable weight in terms of premium rates. Higher premiums will be placed if the truck carries very expensive cargo on a regular basis. This also applies to cargoes that are potentially hazardous.

Safety Features

Insurance providers prefer trucks that have safety features. They also check if the company has safety programs in place and if the drivers are being trained regularly.

Weight of the Truck

Larger and heavier trucks are considered riskier because they are harder to maneuver — they are more prone to accidents, which can result in vehicle damage and driver injuries. Heavier trucks are often the ones with dangerous cargo, which, as mentioned above, warrants a much higher premium.

Regulations Per State

Each state has its own set of laws in relation to the value of insurance you have on your truck. Mileage also plays a role here — the more miles that a truck travels each day, the higher the premiums will be.

There are ways to help lower the price or cost of your premiums. If you’re the driver, you should have a clean driving record or years of experience behind the wheel in order to qualify for discounts. Using older and used trucks are more affordable in the eyes of the provider since they are less expensive to repair compared to newer vehicles.

Get the Best Option for your Commercial Trucking Insurance

Let Strong Tie Insurance help you get the best deal for your insurance. We know the hustle that you have to go through to keep your vehicle running throughout the year. That is why we provide a flexible semi truck insurance quote that fits the need of most vehicle operators. Strong Tie Insurance offers a wide range of insurance policies that cover trucks of all types and sizes.

Over the years of our operation, we’ve been able to deal with different clients who have different trucks yet want the same goal — to be insured against any damage or property damage and injuries that may result from semi-truck accidents.

Navigate the path to the right insurance choice. Immerse yourself in our blog post selecting a commercial truck insurance company. Make informed decisions for your insurance coverage needs today.

Unlock essential knowledge and information for navigating commercial truck insurance. Explore our blog post revealing the top 3 crucial factors about commercial truck insurance you need to be aware of. Make informed decisions to manage your commercial trucking insurance costs or truck insurance costs effectively.