Steps to Lower Trucking Insurance

June 13, 2022

Steps to Lower Trucking Insurance

Insurance costs are a significant expense for trucking companies, just like fuel and truck costs. Insurance premiums increase every year even if you have a good policy from a reputable company. There are a number of ways to lower your trucking insurance rates while still making sure that your truck drivers and trucks are protected. There are also different types of insurance you can get for your fleet, so make sure to get commercial truck insurance quotes from several companies to make sure you’re getting the best rate and coverage available. 

What are ways to lower trucking insurance?

One Insurance Company

One way to lower trucking insurance is to make sure you use one insurance plan for your entire fleet. Many transportation companies use different companies for individual policies on each vehicle. This isn’t very efficient, and it can lead to increased insurance rates. If you use one company to insure all your vehicles, they’ll typically give a discount for insuring multiple vehicles. This will also make it easier to make all your payments on time, and that is crucial to keeping rates low. 

Fewer Payments

Many insurance companies offer discounts if you pay annually or semi-annually instead of monthly. If you have the cash flow to afford it, reduce the number of payments you make to your insurance company to take advantage of those lower premiums offered. 

Pay On Time

While paying on time won’t lower your insurance premiums, you can avoid late fees by paying on or before your due date. This isn’t just true of insurance premiums either. Any bill that you need to pay should always be paid on time. Not only is it professional, it will save you from wasting money. 

Check Driving Records

When you’re hiring new drivers, it’s important to make sure that they have clean driving records. While drivers can get a CDL even if they have points on their driver’s license, your insurance rates will increase significantly if your truck drivers have points or a history of reckless driving. 

Map Out Routes

The roads your truckers drive on frequently can have a big impact on your insurance premiums. Frequency of inclement weather, population density, and other factors can weigh in on the risk level of a route. So try to avoid sending your truck drivers through heavily-populated metro areas or areas where bad weather is a concern. 

Use Newer Trucks

The age and condition of your trucks can have a big impact on the rates you pay for commercial vehicle insurance. Regular maintenance and installation of new equipment on trucks also impacts the insurance premium. Ideally, make sure your trucks are no older than 10 years. Installing aftermarket safety features, like accident avoidance technologies, can also help lower truck insurance rates.

Implement Safe Driving Incentives

Consider starting an incentive program for safe drivers. This can encourage drivers to drive safely while at the same time reducing insurance premiums, improving driver retention, and rewarding productive employees. 

Higher Deductible

Consider increasing your deductible if your rates are still too high after trying the above suggestions. Higher deductibles almost always result in lower insurance premiums, but you will have a higher cost if an accident happens. Select a deductible you can afford, and make sure to contact your insurance provider to confirm that your increased deductible will result in a lower insurance rate before making any changes to your policy.  

What does trucking insurance cover?

Trucking insurance covers a variety of issues you may face as a trucking company. Talk to your insurance agent to make sure the insurance policy and additional coverage you’re buying is sufficient for your company’s needs and that the commercial truck insurance cost is as low as possible. Things to look out for include property damage coverage, bodily injury coverage, general liability insurance, vandalism, cargo insurance

Truckers General Liability Coverage

Liability insurance covers the actions of a driver who is operating on someone else’s premises, such as loading docks and truck stops. 

Primary Liability Coverage

This covers the damage a driver may do to others while operating a company truck.

Physical Damage Coverage

This provides coverage to repair or replace damage to company equipment in the event of an accident or theft.

Cargo Coverage 

When protecting your cargo, make sure your cargo insurance covers you no matter the risk — stolen goods, wet load, refrigeration breakdown, etc. There are different types of coverage for cargo, so make sure the additional coverage you’re buying meets the needs of your motor carrier.

Medical Payment

This covers medical bills if a driver or a passenger is injured while driving or riding in the tractor (this coverage varies from state to state).

Uninsured/Underinsured Motorists

This coverage protects you if someone hits your driver and does not have liability coverage to repair whatever you need repaired.

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