Trucking companies have a lot on their plates, from bidding for loads to keeping their trucks maintained. Even the busiest companies might start to feel the pinch from time to time, and one big contributing factor is the cost of insurance.
If you are finding that you are paying more than you expected for trucking insurance coverage, you do not simply have to accept the cost. We offer six ways on how to lower your trucking insurance costs while simultaneously improving how your business operates.
1. Reevaluate Your Trucking Routes
Commercial trucking insurance premiums are determined based on several factors that all feed into the same calculation. Among these considerations are the routes that you take when you operate. Some routes are considered riskier than others, especially if they pass through congested or metropolitan areas. Areas that often experience bad weather can similarly increase your risk to the insurance company. Consider how you could alter your driving path to mitigate the risk and bring your premiums down.
2. Hire Drivers With More Experience
Insurance companies calculate your premiums based on how likely you are to make them pay out on a claim. One of the best ways to keep your trucking company in good working order with minimal accidents is to hire drivers who have a lot of experience. Ideally, insurers want to see drivers with at least two years of CDL operation under their belt. Newer drivers are less likely to make good choices about how to avoid accidents or handle inclement weather because they have less experience with these situations.
3. Upgrade Your Fleet
If you have been operating older trucks that need maintenance fairly often, you could be feeling the cost not only in the price of repairs but also in your insurance premiums. The age and condition of your trucks will impact how risky insurers view you to be, and do not forget that some older vehicles may not come with more modern safety equipment that could help prevent accidents. If it is reasonable for you to do so, bring some or all of your trucks up to date with newer models (especially those older than ten years). This will help to drop your premiums as you benefit from more modern accident avoidance technologies.
4. Only Trust Drivers With A Clean Record
Experienced drivers are valuable, but they will still reduce your overall insurance cost if they do not have clean records. Insurers use past data to determine future risks. If your drivers have been in accidents in the past, your insurer is likely to anticipate that it could happen again. At most, your drivers should not accrue more than two moving violations within the last three years, and these violations should be minor. Examples of minor violations include failing to fully stop at a stop sign or being pulled over for straddling lane lines.
5. Up Your Deductible
One of the simplest ways to reduce the overall cost of your trucking insurance is to increase the deductible. With this method, you do not need to make any changes to your fleet or employees. You simply need to tell the insurance company that you would like to switch to a plan with a higher deductible.
While this can drop the cost of your trucking insurance, it also means that you will pay more out of pocket if something happens. The deductible is the amount that you are responsible for before insurance kicks in. Increasing the deductible lowers your rate because insurers have to pay less—and you pay more.
6. Verify Drivers’ Previous Employment
Your drivers make up a critical aspect of how your trucking insurance premiums are calculated. Consider whether the truckers you hire have job hopped frequently from company to company. If so, insurers will likely view them as higher risk—not only because there are more gaps in their history, but because they are less familiar with your company’s specific practices and equipment. More experience is always better. That being said, a trucker who has worked for one or two other companies should not pose a problem.
Trust The Experts To Help You Secure The Right Insurance Coverage
You may be taken aback at the quote you received for your trucking insurance coverage, or you may be looking for ways to amend the insurance plan that you have been working with for years. No matter the situation, the experts at Burton & Company can help.
Our professionals can sit down with you to determine the perfect mix of insurance types and coverages to keep you protected while still staying within your budget. Reach out to learn more about how we can help or schedule an appointment to get started.