How to Keep Your Commercial Truck Insurance Cost Low

Admin March 7, 2019 Commercial Truck Insurance

So you have just acquired a new truck and you want to get the best commercial trucking insurance quote in the market for your vehicle.

This article is going to guide you on everything you need to know to make the right insurance coverage choice including the types of coverages, insurance costs; factors affecting semi-truck insurance costs and ways to reduce your insurance costs.

What are the Types of semi-truck insurance coverages

Insurance for commercial trucks is unique to covering specific risks that trucks are exposed to when hauling goods from one State to another. They include:

Primary Liability Insurance: This type of insurance covers bodily injuries and property damage caused by the truck to third parties while on the road. The Federal Motor Carrier Safety Administration (FMCSA) has made it mandatory for every vehicle on the road to have primary liability insurance.

Physical Damage Coverage: It insures the truck for damages and repairs including accidents, natural disasters, and theft.

Motor Truck Cargo Insurance: It covers damage to the cargo you are hauling from causes such as fire, theft or even refrigeration breakdown.

Non-Trucking Liability Insurance: It applies only to drivers under lease with a motor carrier. It covers damage to third parties when driving for personal or non-business purposes.

What are the Factors Affecting Semi-Truck Insurance Costs

These factors cause total insurance cost estimates to vary widely:

Cargo type: Insurance costs are higher when hauling hazardous cargo such as fuel as compared to stationaries that are less harmful and easier to transport.

The weight of freight: Simply the heavier the load, the higher the premiums.

Driving distance: The longer the distance you travel, the higher the risk of being involved in an accident or cargo damaged. Therefore, long-distance truck drivers are likely to pay higher premiums.

Ownership status: Owner operators with authority are likely to incur more costs as compared to operators under permanent lease because they pay for supplementary coverages in addition to primary liability insurance.

Truck value: The premium to be paid for physical coverage is usually a percentage of the truck value. Therefore, the higher the truck value, the higher the premium.

How to Keep Low Costs for Semi-Truck Insurance

Make annual payments: It is much cheaper to pay your insurance premiums in a lump sum once in a year as compared to monthly payments. You can save up to 10% of the original insurance costs.

Maintain a good driving record: Most Motor Vehicle Insurance companies have incentives to attract people with a clean driving record. They provide cheaper premiums to such drivers because of low-risk probability.

Package your insurance policy: Combining all your coverage types into one bundle is always cheaper compared to purchasing separate policies.

Choosing the best insurance for commercial trucks can be daunting if you are new to this industry. Do not worry if you are having trouble deciding on the insurance policy for your semi-truck. Visit Strong Tie Insurance Company to get the best commercial trucking insurance coverage at the lowest price!