There are several reasons why truck insurance is more expensive compared to regular cars, generally because they pose far more safety hazards and risks. First and foremost, purchasing a truck will cost you far more than purchasing a car.
Should a truck need to be replaced entirely in the event of an accident, insurance companies will need to pay more — thus the higher fees. In addition to this, these bigger vehicles can cause more damages and injuries. Property damage can be catastrophic, and injuries on a third party can be fatal.
The truck itself may also be subject to more damages, and can potentially be scraped or hit by miscellaneous objects on the road. Also, heavier vehicles may be faced with higher coverage limits. This is not only because of the potential damage they can cause by their sheer size, but also due to the difficulty a driver may have if they were to suddenly stop the truck.
Other factors that cause truck insurance to be more expensive are a long history of previous claims, the policyholder’s poor credit score, the driver’s driving record, distances to be traveled, and the type of cargo hauled by the truck together with the value assigned to it.
Passenger carrier trucks and trucks that haul hazardous materials may have more expensive insurance policies to offset the costs associated with possible losses or damages.
Truck insurance is more expensive because trucks are larger and can cause more significant damages or injuries in accidents. Their higher purchase price also contributes to higher insurance fees.
Factors such as a history of previous claims, poor credit score, the driver's record, long travel distances, and the type and value of cargo can raise insurance costs.
Such trucks may have higher insurance costs due to the increased risk and potential costs associated with possible damages or losses.
Assured Standard offers a wealth of information on comprehensive insurance policies. Contact us today if you need help deciding on which policies suit your company best!