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How Can Small Trucking Companies Get Affordable Insurance?

Are you a small trucking company that is looking out for affordable insurance? If YES, then here is how you can get affordable small trucking insurance. According to the ruling of the Federal Motor Carrier Safety Administration (FMCSA), you are expected to have adequate insurance to drive on public roads.

If you operate a truck for work, it is important that you cover the legalities and seek adequate insurance coverage. The premiums will be higher than on a car, but the risks associated with operating this vehicle are higher too. You will also have to obtain a motor carrier number that will be used to arrange your insurance.

A certificate of insurance is necessary for your trucking business to operate. If you are an owner and operator of the truck, you are expected to pay between $9,000 and $15,000 a year, provided that you have a good driving record.

In recent years, however, prices of truck insurance have increased by as much as 20%. Indeed, there are certain circumstances that will have an impact on the price of the premium.

However, note that you can reduce your commercial trucking premiums and still get the most out of your truck insurance policy. Insurance providers consider many factors in determining your commercial trucking premiums. Knowing what the providers are looking for can help you get reliable coverage at an affordable cost.

Top Ways To Reduce Your Commercial Trucking Insurance And Also Get Affordable Insurance

  1. Employ Experienced Drivers

Insurance providers have a genuine interest in years of driving experience when analysing truck insurance premiums. Experienced truck drivers can better deal with adverse weather and other difficult working conditions. Providers understand your operation as relatively less-risky, therefore they will be willing to impose lower trucking insurance premiums. Ideally, your drivers should have at least 2 years of CDL experience.

  1. Increase Your Deductibles

If you’re desperate for a very cheap trucking insurance plan, you can always increase your deductibles. A higher deductible results in lower trucking insurance premium. However, you will have to bear higher upfront costs if an accident occurs.

If you decide to go down this route, select a deductible your company can afford to front without additional burden. But, before proceeding with changes to your policy, set up a policy review with your commercial trucking insurance agent to find out the best options for reducing your company’s insurance premiums.

  1. Hire Drivers with Clean Driving Records

The past is the best predictor of the future. Drivers with a history of plenty accidents and violations have a higher risk index compared to their counterparts. The reverse is also true and insurance providers do take notice of this trend. Consider hiring drivers with fewer violations and accidents. Ideally, hire drivers with at most 2 minor moving violations in 3 years.

  1. Get the Right Coverage

Note that there are some essential coverages you need to insure a big rig, and there are some that are just nice to have. Working with a professional agent can help you tailor a policy that covers your unique risks at the best price.

  • Liability Insurance – All O/O with authority are required by the FMCSA to have Property Damage and Bodily Injury with a minimum limit of $750,000.
  • Cargo Insurance – Almost all brokers and shippers require their drivers to insure the freight they haul. Basically, you won’t be able to find work without this coverage.
  • Physical Damage Insurance – This coverage pays for damage to your rig. It’s usually about 2-3% of your vehicle’s value.
  1. Ask for Discounts

Big truck insurance companies will offer you discounts to make their policies more attractive: Discounts for safe driving, discounts for long time customers, discounts for having safety protocols. Simply ask the agents which ones you qualify for.

  1. Pay Your Whole Premium Upfront

This one’s a little tricky. Note that to get cheaper big truck insurance overall, a good thing to do is pay your entire premium at once.

This entails writing a single check to your insurance company for however many thousand dollars it costs to insure your truck for one year and you’re done for the entire year. When compared with paying month-to-month, this payment plan can actually save you about 10% in the long run.

  1. Verify Driver Employment History

A driver who is steadily switching companies does not inspire confidence with insurance providers. Drivers who have served extended periods of time with few companies are perceived as more stable, and have a cleaner history with fewer employment (and possibly insurance coverage) gaps to review. It also implies that they are experienced with specific equipment and routes.

  1. Compare Quotes from Several Insurance Agencies

When an insurance rep is putting together a quote for you, he’s considering details like where you’re from, how far you usually drive, what materials you haul, and what your driving record looks like. Have it in mind that each insurance company will use these identical details when determining how much to charge you.

The thing is that each company weighs your details differently. One company might look at you, see where you’re from and your radius, and offer a very high premium. But another company might see the same thing and offer a much, much cheaper premium. The trick is finding an insurance company that’s right for you.

  1. Use Newer Trucks

The age, value and condition of your trucks will ultimately have an impact in determining your commercial trucking insurance premiums.

Regular maintenance and installation of new equipment on trucks also informs the premium rate decision. Howbeit, stick to new trucks, 10 years or newer. The truck should also have modern equipment when possible; such as accident avoidance technologies.

  1. Map out Your Trucking Routes

Also note that the routes your trucks operate have an impact on your commercial trucking insurance premiums. Factors such as frequency of inclement weather, population densities etc. have an impact on the risk level of a particular route. However, avoid high population metro areas and areas prone to bad weather when mapping out your route.

Acquiring affordable commercial trucking insurance premiums is not always easy. While the measures listed above, individually, may not save you a great deal on your premium, collectively they can reduce your premiums substantially while also maintaining at or above-minimum coverage on your truck insurance policy.