A lot of truckers worry about the potential premium increase that follows a cargo insurance claim. Some even go as far as purposely hiding cargo damages and losses. Yes, the premiums on your commercial truck insurance policy will likely increase if you file a claim. However, the spike isn’t as volatile or unpredictable as most first-timers assume.
Historically, insurance claims can cause commercial auto insurance premiums to jump 20% to 40%. Several factors affect the exact rate increase, such as driving records, cause of the road accident, cargo hauled, claims history, and coverage terms. Of course, policyholders can retain the same rates if they have an updated policy with no prior penalties.
Pricey cargo claims involving high-value goods may increase your policy premiums, especially if the liability claims exceed the coverage limits.
If you have been involved in more than one road accident before, your insurer will likely increase your premiums. Remember: truckers with poor driving records classify as high-risk clients.
Policyholders with a no-fault insurance clause can avoid post-claims premium spikes, although most insurers only offer this clause upon policy application.
Never forgo filing cargo insurance claims just to keep policy premiums from increasing. Even if your premiums double overnight, they still wouldn’t compare to the hundreds of thousands you could lose from cargo damage. The FMCSA even states that a single truck crash could set you back by $100,000 to $200,000. This amount might make most owner-operators bankrupt.
Are you having trouble deciding where to get your truck insurance? Assured Standard can help! Check out our in-depth review of the best commercial truck insurance providers in the country.
William's time as an operations specialist for an international bank has lent him a keen eye for detail and strong organizational skills to boot.