How to reduce truck insurance premiums? This is one of the questions often thrown our way.
As an individual owner-operator or small fleet owner, we understand that truck insurance can take a large part of your monthly expenses.
But why are these so expensive?
The answer is simple:
insurance providers assess premiums based on several risk factors like driver’s experience and qualifications, and whether the truck receives regular maintenance. If they’re not impressed by how your business handles risks, they are more likely to put a higher price on the premiums.
Nonetheless, did you know that there is a way to reduce these truck insurance premiums?
7 Valuable Tips to Reduce Your Insurance Premiums
If the insurance company classifies your business as high risk, expect higher premiums. Since the trucking industry is no stranger to risks, the only way to reduce insurance costs is to lessen exposure to these risks.
And in this article, we’ll introduce you to 7 valuable tips to reduce your insurance premiums.
1. Hire Seasoned Drivers
The driver’s experience plays a crucial role when insurance companies assess truck insurance premium rates.
Before a truck driver receives a commercial driver’s license or CDL, he must meet the minimum requirements which vary from state to state. This assures you that he has what it takes to navigate the road safely, regardless of the road and weather conditions.
The more experienced he is, the better it looks for your company – and your insurance premiums.
2. Look Into Drivers’ Age
Working hand-in-hand with the driver’s experience is his age. In more collisions than normal, truck drivers who are very young or very old appear to be involved.
As much as possible, hire drivers between the ages of 30 and 60 years old. Aside from the experience, they are also known to be more cautious on the road.
3. Verify Driving History and Records
Insurance providers also assess the driver’s employment history and legal records. This is their way of determining the driver’s professionalism and how well he operates the truck.
A driver with a clean record will land you lower insurance premiums as opposed to someone who has been involved in several road mishaps.
Thus, consider this before hiring a truck driver.
4. Prioritize Safety
The use of safety systems – such as regular truck maintenance and driver safety preparations – shows insurance companies that you take accident prevention seriously. This reflects your compliance with industry standards which also reduces the risk for accidents and cargo damage.
Insurance companies will see this preparedness as a willingness to take the necessary precautions to reduce exposure to risks. And when the risks are low, lower commercial truck insurance premium rates will follow.
5. Invest in Newer Trucks
Driving new trucks is less likely to cause road accidents. Apart from their improved internal engineering, they are also equipped with modern features that help prevent accidents.
A 2017 study shows that most truck operators replace their trucks after reaching a mileage of 350,000 miles. That’s roughly around 10 to 15 years. But, we recommend truck replacement every 7 to 10 years to ensure lower premiums.
6. Check Your Routes
In general, plying rural areas results in lower premiums than traveling through urban areas. This is owing to the latter’s high risk for criminality and traffic congestion.
Nevertheless, road quality also plays a vital role in determining the cost of your insurance. Paved roads in rural areas will result in lower rates compared to unpaved roads since it will reduce the risk of accidents.
7. Choose the Best Insurance Broker
Finally, choose to work with the insurance broker who specializes in commercial truck insurance.
Here at Ace Commercial Truck Insurance, we can help you find the right trucking insurance coverage that your company needs. Whether you need general liability insurance or the more extensive bobtail insurance, we’ll be happy to assist you.
Final Takeaway
If you’re new to the trucking industry, preparation is key. You can take advantage of all of these tips to save on commercial trucking insurance costs.
And even if you’re already in the business and simply looking for ways on how to reduce truck insurance premiums, hiring the right personnel and observing all safety precautions will surely help you meet that goal.
All things considered, these factors will work together to reduce your truck premiums. While the drop in the cost may not seem substantial at first, it will surely save you thousands of dollars in the long run.
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