How To Get Commercial Truck Insurance for New Ventures

Strong Tie Insurance December 31, 2019 Commercial Truck Insurance
Getting the right commercial truck insurance for your business can be challenging. This is amplified if you’re looking to get insurance for a new venture. New venture trucking companies require a policy to cover liabilities that can come in losses and damages. Any new trucking startup will need insurance for auto liabilities and physical damage. 

Why Your New Venture Needs Insurance

The trucking industry is volatile, and maneuvering the ins and outs of the industry can be difficult. Insurance will help protect your business from liabilities and cover you in the case of damages to help your business run smoothly. As a new owner-operator, you’ll need commercial truck insurance no matter the size of your business, whether you have a few trucks or a large fleet. Truck insurance for new ventures can be taken for:
  • Semi-trucks
  • Delivery trucks
  • Box trucks
  • Straight trucks
  • Haulers

What You Need to Get Insurance

If you’re a new Commercial Driver’s License (CDL) driver, it’s important to prepare all of the necessary documentation and information that you’ll need to obtain a quote from an insurance company. Having this information handy can help you speed up the process and make it much easier for both parties involved. The information you will need to provide an insurance agent is:
  • Driver information
  • Vehicle information
  • Items hauled
  • Radius of operation
  • Getting New Venture Truck Insurance

Choose Your Business Type

If you’re establishing a basic business, you may want to choose a sole proprietorship. This allows you to be the only owner of the business and have sole responsibility for everything that goes on. If you have a more advanced business plan with a number of partners or investors, you may want to set up a corporation or limited liability company. It’s always important to seek advice from the experts for the best option for a new venture. Always take the time to do your research and choose a business tax structure in the early stages of business development. 

Saving Money

Because this is a new venture, you’ll want to save as much money as possible upfront. You won’t want to waste your available funds, so it’s important to go for insurance coverage that’s budget-friendly. It’s important that you understand your own finances and use what you have appropriately to help you get your business moving. When looking for affordable rates, make sure you’re not compromising truck insurance coverage. Look to work with companies that will not penalize your business because it’s new. 

Always Compare Plans

Without making comparisons, you never really know if you’re choosing the right insurance plan for your new business venture. Look for new venture insurance companies that have programs designed specifically for trucking companies like yours. This can help you decide what options are best for you. Some options under new venture insurance can include:
  • High-risk insurance
  • Owner-operator programs
  • Risk operator programs
  • Long haul trucking insurance
Read More: What Kind of Insurance Coverage Do Trucking Companies Need?

Ask for Help

If you’ve never created your own trucking company from the ground up, make sure to ask for help. Seek help from legal experts and experienced insurance brokers of trucking companies that have been successful. They will help you find budget-friendly insurance coverage. Whether you’re a new startup owner or simply a new driver, you’ll want to find the insurance that’s right for you.

What Types of Insurance Will I Need?

You will need the mandated Liability Insurance. This insurance covers damages and injuries as a result of an accident that you cause. However, there are also other options available that you may need for your new venture. Medical Coverage: This insurance provides coverage for any medical expenses for those in your rig if there is an accident. Physical Damage: This coverage provides coverage for your truck or any damages caused by a collision, theft, fire, and vandalism. Motor Truck Cargo Insurance: Cargo insurance gives you coverage for all of your hauled cargo that may be lost or damaged during its journey. Equipment Coverage: Equipment coverage is optional and covers owned items or property that’s lost or stolen from your truck.

Additional Tips for Getting Commercial Truck Insurance

Gain the Necessary Experience

If you’re a new CDL driver, you may find that you have a hard time finding insurance providers who are willing to accept the risk. Most insurers want to see at least two years of CDL experience so that you can get a more affordable rate. During this time, it’s crucial that you have an outstanding record with no accidents, especially if you want to make sure you can get the ideal coverage for your new venture.

Improve Your Credit Score

One of the deciding factors on your insurance premium rate will be your credit score. The higher your credit score, the better rates you’ll be offered. Having a poor credit score means that you’re higher risk than another owner-operator with a good or excellent credit score.

Reviewing Your Policy

You should review your policy frequently. After your first twelve months, and every year after that, all insurance companies will recommend that you review your trucking insurance policy to see if you can get a reduced rate. Read More: Advice on How To Save Dollars From Your Commercial Truck Insurance

How Much Should You Expect to Pay?

Insurance costs will vary depending on your location. How much you pay monthly will also vary according to a number of factors, such as experience, age, vehicle, and types of items hauled. Regardless of these factors, the average costs can range significantly, which is why it’s so important to shop around. The insurance you purchase for your commercial trucking business is an absolute necessity that protects your company. Do you need insurance for your new trucking venture? We can help. Contact us today.

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