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Why Is Insurance For Small Semi Truck Companies Higher?

Why Is Insurance For Small Semi Truck Companies Higher?

Insurers charge small semi-trailer truck companies higher insurance premiums due to the increased risks associated with insuring their vehicles. Truckers carry too much risk. Road accidents are more rampant, trucking startups have minimal credibility, and drivers are committing road violations more frequently.

Reasons Why Insurers Charge Small Semi-Trailer Truck Businesses Higher Premiums

Do insurance providers increase their rates randomly? Not at all. Trucking insurance companies consider several factors before increasing policy premiums, which include:

  • Higher Road Accident Frequency: Road accident rates are at an all-time high of 5.2 million incidents per annum, leading to one mishap every minute. The rising number of vehicles and poor road conditions create hazardous driving conditions.
  • No Business Tenure: Trucking startups are riskier to ensure. Insurance providers typically charge higher rates if you have no business tenure, bad credit, and minimal cash flow.
  • Increasing Vehicular Prices: Nowadays, brand-new semi-tractor trailers loaded with several modern features can cost up to $500,000. Unfortunately, pricey vehicles cost more to insure.
  • More Insurance Claims: Insurance companies typically lose money if too many clients claim against their policies.

Explore all your insurance options to get the best deals in the state. Dozens of companies insure semi-trailer trucks in the state. Compare at least three to four quotes, then see which policies offer the most coverage per dollar.

However, don’t blindly opt for the cheapest policy. Several factors affect the quality of an insurance policy, which includes the insurer’s financial strength, insurance specialties, and coverage extensiveness.

Frequently Asked Questions:

Why do small semi-truck companies face higher insurance premiums?

Small semi-truck companies typically face higher insurance premiums due to increased risks such as higher road accident frequency, lack of business tenure, high vehicle prices, and increased insurance claims.

How does the cost of the vehicle affect insurance premiums?

The cost of the vehicle impacts the insurance premiums as more expensive vehicles typically cost more to insure.

What is a good strategy for small semi-truck companies to find affordable insurance?

Small semi-truck companies should explore various insurance options and compare at least three to four quotes to find policies that offer the most coverage per dollar. However, it's also essential to consider other factors such as the insurer’s financial strength, insurance specialties, and coverage extensiveness.

Are you worried that tow truck insurance rates are going up as well? Let Assured Standard shed some light on the topic. Check out our quick piece explaining why tow truck insurance rates have been increasing lately.

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