Do you want to get insurance for your car hauling business? If YES, here are 9 factors that determine how much you will pay for car hauling insurance.
Car hauling trucks are used by transport companies, car dealerships, repossession companies, etc. Acquiring a car hauler for your company is an enormous investment that will pay off over time. However, since these trucks are very expensive carriers, if yours is damaged in an accident, you may find it difficult to pay for the repairs.
Commercial auto insurance is very imperative to help ease the suffering of your company by protecting assets such as your car carrier truck.
Have it in mind that carrying the proper types of insurance at the right levels can also help prevent most types of loss and financial strife that is caused by accidents or other perils. A lot of factors influence the cost of car hauler insurance. To give you an idea of what determines your car carrier insurance rates, here are some factors you need to keep in mind.
9 Factors That Determine How Much You Will Pay for Car Hauling Insurance
1. How many trucks you have
Note that if you’re insuring ten haulers, that’s going to cost more than insuring five. Each truck needs to be covered under your insurance policy. And more trucks entail more insurance. Car hauler insurance cost depends on the size of your fleet.
2. Your loss history
The insurance company will also want to consider your loss history, which is more or less a list of the claims filed against your insurance policy. If you have a significant amount of claims, you’re seen as being more of a risk to insure. And if you’re more of a risk to insure, you’ll probably get higher truck insurance rates.
3. What kind of business you have
Have it in mind there are multiple operations that could use auto haulers. Maybe you transport cars for clients. Or you have an auto body shop and own a car carrier. You could be a car dealership, or maybe you deliver cars for various dealerships.
Have it in mind that the type of work you do will influence your insurance cost. Your carrier will want to know what kind of business you run.
4. What you haul
Do you transport new cars? Used cars? Are the cars headed for the junkyard? Do not forget that the cargo you’re transporting will affect your rates. The more expensive your loads, the more coverage you’ll need. And it will instigate a difference to the cost of car hauler insurance for your business.
5. Your drivers
Note that the age, experience, and driving records of your drivers will also influence your rates. If your drivers have plenty of experience driving trucks and they have clean driving records, they’re less of a risk to insure. And it means you could get lower rates on your insurance.
6. The car hauler
In the United, the car year, make, and model of your truck will also influence the car haulers value, which is going to play a part in your rates. How much would it cost to repair or replace your truck? How much coverage do you need for the car carrier itself?
7. Your hauling radius
Also have it in mind that where you operate and how far you go also matters to your insurance rates. The insurance company will also be interested in knowing whether you’re interstate or intrastate (meaning whether or not you cross state lines.
In the United States, tickets are also considered as indicators of risk. If your drivers have a history of speeding or getting tickets, they’ll be considered as being more prone to get into an accident, and your rates could be higher.
Normally, insurance companies don’t like to take their chances with immeasurable risks. This is why it’s so pertinent to have workplace safety policies and to uphold a high standard of safety. Also educate your drivers about safe driving practices.
9. Your contracts
If you have or you are seeking for contracts, the guidelines may require you to carry a certain amount of insurance. It’s imperative that you communicate any contractual requirements to the agent assisting you with your quotes. Also note that your contracts can change the way that an insurance company will classify your business, and that can affect your car hauler insurance cost, too.
With all of these factors contributing to your auto insurance cost, the best way to get an accurate idea of how much your coverage will cost is to get an insurance quote. In general, if you have a small hauler (holds three or fewer vehicles); you will more or less need at least $100,000 in coverage just to be able to bid for a job.
If you have a large hauler (can transport 8 to 10 vehicles with a semi-truck), you will likely need $250,000 to $500,000 in coverage at minimum. If the value of your business is greater than that, you probably should consider more coverage.
How to Acquire Car Hauling Insurance
A car hauling business can appeal to a broad audience, but face many risks on the road including accidents, theft, and damage to the cars in tow. If you want to open a car-hauling or towing business or if you already have an established enterprise, you know you’ll have some expensive cargo to protect from damage or theft.
1. Start Shopping On Time
You don’t have to wait for the next year or for your business to gain a little ground before you start considering this insurance. You should give your agent at least 60 days to compare policies and get you the best insurance company possible.
2. Compare Several Insurance Companies at Once
Have it in mind there is no single best insurance company—what’s right for someone else might not be right for you. So how do you find the one that fits you? You simply cast a wide net. Don’t just contact one insurance agency, contact multiple ones. Always remember that you can fill out a single form and get immediately connected with three different agents online.
3. Give Your Agents All the Facts About Your Business
When talking to an agent, note there are some questions that you have to answer. It’s pertinent to be as honest and detailed as possible so he can provide you with a policy that best suits your needs. Information you should have ready:
- The exact size of your fleet
- Information about your haulers, including make, model, and mileage
- What state and federal safety programs and security measures you employ
- Your driver qualification files
- The last three to five years of your loss run history
- The services offered by your business and the amount of revenue each generates
4. Find the Company’s Credit Rating
Note that after the agent must have analyzed and processed your information, he’ll provide you a specific quote from an insurance company. You should accept or decline the offer based primarily on two things: the price and the reliability of the insurance company.
5. Get all the info about the company you need
Also note there are some basic questions to ask your insurance company to make sure they can accommodate you and your business. Some good questions to ask include;
- Can I cancel my policy at any time without any fees?
- What kind of repairs do you offer—OEM or otherwise?
- Do you offer combined deductible?
- When can I reach you if issues occur? Do you have 24-hour claims service?
6. Get the Best Price
You should also find out which discounts are available. Companies have numerous discounts for businesses based on safe business practices. Note that you might be able to get a discount if you offer safety manuals and employee handbooks, your drivers use GPS systems, or you have security cameras installed on your property.
7. Use a payment plan that matches your budget
Indeed there are various types of payment plans available, including month-to-month payments, year-to-year payments, and everything in between. However, note that the more you pay upfront and the more spaced out your payments are, the less your overall premium will cost.
While actual requirements vary from state to state, potential clients may not do business with you without proof of a certain level of insurance. Additionally, some state and federal agencies may not allow you on the road without a certain minimum level of coverage.
You may be seeking some answers about insuring your car hauler, and you may want to find better coverage or a better rate on the insurance you already own. Either way, speak to an expert or your attorney to help you find the insurance you need at a price that makes sense for your budget.