Commercial truck insurance rates have a relatively wide range. Tenured, low-risk fleet owners backed by decades of trucking experience can minimize their monthly premiums to just around $650. On the contrary, high-risk truckers transporting hazardous cargo might have to pay over $15,000 annually.
Do you want lower premiums? Improve your insurability! Although no two insurers share the same risk tolerance, they typically assess the same risk factors. Understanding them gives you insights into how truckers get the best truck insurance rates.
Here are seven ways to impress insurers and get lower truck insurance premiums:
Driving records give insurers an idea of how you act on the road. If you have several unpaid tickets and often violate traffic laws, insurance underwriters would assume that you have poor driving habits. On the other hand, clean driving records minimize your risks of getting involved in road accidents.
Note: Make sure you hire drivers with clean records. Insurers will assess all the drivers that you plan on insuring.
Truckers gradually expanding their fleets often get their insurance policies individually, so they end up talking to multiple insurers. Don’t haphazardly agree to open new policies. Note that insurers can give you a lower average semi-truck insurance cost if you enroll all your new and old trucks under their institution. Only get your insurance policy from one company.
Pro Tip: Use your competitors’ quotes as leverage to bargain a lower trucker insurance cost.
Monthly repayment plans often have higher interest rates. You will get a much better deal on your insurance if you opt to pay the lump sum of your annual premiums.
However, if the pricey annual premiums will disrupt your cash flow, get a business loan instead. Apply for a low-interest loan, then pay off your insurance fees. This strategy allows you to avoid steep interest rates without compromising your startup capital.
Your insurer might overlook falling behind a week or two on payments. After all, every business experiences unprofitable months. However, consistently missing several months’ worth of premiums puts you on the blacklist. Apart from the late payment penalties, you might also get charged with a premium increase.
Long-haul truckers get higher premiums because their lengthy trips leave them prone to traffic accidents. Spend less time on the road. Instead of forcing your drivers to take on long-distance trips in one go, divide them into multiple routes and hire more truckers.
Yes, you’ll end up paying more for labor. However, the reduced premiums, improved worker efficiency, and minimized wear and tear damage on your vehicles will cover your losses.
Invest in your assets. Insurers will charge you more if you use old, unreliable equipment prone to damages. Let’s take your truck as an example. Although newer models have a higher market value, they cost less to insure since they’re less likely to get damaged.
Pro Tip: The equipment that your insurer might assess depends on the nature of your business. For instance, truckers hauling hundreds of pounds should fortify their cargo bed, while tow truck operators would do well to get a high-quality hook.
Clear all tax liens and judgments tied to your business before signing up for insurance. Otherwise, insurers will automatically label you a delinquent client. Not only will you get higher premiums, but you might not even qualify for trucking insurance.
Do you find commercial truck insurance rates confusing? You’re not alone! Check out the most common questions truckers ask about the average semi truck insurance cost and insurance risk assessments.
Trucker insurance costs vary from policy to policy. However, most commercial trucking service providers can expect their annual premiums to range from $9,000 to $15,000.
Pickup trucks cost more to insure because their large frame often results in pricier property damages and bodily injuries. The risk factors further increase if you carry heavy equipment in the cargo bed.
Statistics from autoinsurance.org state that the Ford F-150, Ford Ranger, and Chevrolet Colorado are the cheapest trucks to insure.
Overall, the key to getting lower premiums is understanding your insurability. Remember: insurers charge high-risk clients more. Maintaining excellent driving records, paying off your tickets promptly, investing in quality trucking equipment, and avoiding road accidents altogether guarantee the best truck insurance rates on the market.
Do you offer towing services? Let Assured Standard help you find the best policies on the market! Check out our in-depth guide explaining the insurance coverage tow truck drivers need.