Here are 5 Tips to Save on Truck Insurance. Its no secrete truck insurance premiums have been on the rise. Whether you’re a produce hauler in Texas or a dirt, sand and gravel hauler in California, your insurance costs are going to be a large part of your monthly business expense. Fortunately there are a few things you can do to lower your truck insurance premium.
1) Increase Your Deductibles
One of the easiest ways to lower your truck insurance premium is to increase your physical damage deductible. Physical damage deductible is what you have to pay to get your equipment fixed if you are involved in an accident, where you are deemed at fault. Typically cars and pick up trucks deductibles are set at $250 or $500 while semi trucks deductibles are generally set at $1,000. Most quality insurance companies have a range of deductible you can choose from. For example: $500, $1,000, $2,500 and $5,000. The high you are willing to go on your physical damage deductible, the cheap your physical damage coverage will get. Just keep in mind, the most expensive part of any commercial truck insurance policy will always be the auto liability.
2) Maintain Your Coverage
If your truck business is seasonal or trucking is slow, instead of cancelling your truck insurance policy to save a few dollars. You might consider keeping your truck insurance policy active to increase your saving in the long run. Insurance companies generally give better discounts to trucking companies whom keep a truck insurance policy active for 12 continuous months.
One way to keep your insurance policy active without paying a high rate, is to lower your auto liability limit. In any commercial truck insurance policy, the auto liability coverage will always be the most expensive portion of the policy. These days, most brokers require trucking companies to carry a minimum auto liability limit of $1,000,000csl, but if you are not working for a few months ask your agent if you can lower your auto liability coverage to the state minimum.
3) Hire Clean and Experienced Drivers
This one is obvious, but sometimes need reminding. Most commercial truck insurance companies use driver history and driver experience as a rating factor. The ideal semi truck driver in the eyes of an insurance company is between the ages of 35 and 65 with at least 2 years with a commercial license. It might also be worth noting, most people think they can go to traffic school and get a moving violation removed from their record, but as a professional driver, this is not the case. Most insurance companies don’t separate a moving violation in your personal auto from a moving violation in your semi truck. Because you are considered a professional driver, you are expected to drive with care in all vehicles.
4) Maintain Your Equipment
A few years back, all commercially operating trucking companies received a DOT number regardless or not if they use it. The Federal Motor Carrier Safety Administration (FMCSA) is the governing body of commercial trucking equipment. Every time you go through a scale, the driver and equipment of a trucking company is inspected safety operation. This information given to the scale operator is put in to a federal database, where anyone with a pulse can access it. For example, the insurance companies have access to the vin numbers of the truck and trailer you are pulling, how well the equipment is maintained, who owns the equipment.
One of the newest truck insurance rating factors in the past 5 years is a trucking company DOT score. Just like a speeding ticket or some other moving violation, poorly maintained equipment can have the same negative effect on your truck insurance rate. But on the other hand, if the insurance company see’s that a trucking company takes good care of their equipment, it will have a positive effect on their truck insurance rate.
5) Avoid Late Fees
There are a large number of rating factors that go into a truck insurance premium, One such factor is late fees. Besides the obvious of a late fee charge, at renewal if you have too many late fee’s or pending cancellation notices on the current term. You may experience a higher rate on your truck insurance renewal. The reason for this, is due to the concern from the truck insurance company that you are unable and/or having trouble running your trucking company. Just like any one who has an interest in another business, the smoother you can run your trucking company, the better insurance rate you will receive.