Trucking Insurance – How does it Work?

Most people don’t understand trucking insurance and haven’t done enough research before buying insurance. When it comes to trucking insurance, business owners have even more options. Let’s discuss the different types of insurance so that when you are ready to buy or renew your business insurance, you will have an idea of what types of insurance will fit into your business plan and goals.

Four main types of commercial truck insurance:

  • Liability insurance (Auto & General) pays for damages you cause. This insurance is usually required by law and is not an option.
  • Bobtail insurance, which is sometimes referred to as non-trucking liability, is a voluntary type of insurance that covers your truck when you’re not under dispatch.
  • Motor truck cargo covers the freight you are pulling. Although this insurance is not required by law, the shipping company may require it.
  • Physical damage coverage bases the premium on the value of the equipment. Your lienholder may require it, but generally it is not required by law. This type of coverage protects your truck against fire, theft and other types of damage. Ask your agent what is allowed and what is excluded. Always understand your policy.

Your business may want to consider these other types of trucking-related insurance coverage:

  • Non-owned trailer liability and physical damage are policies that protect the trailer if it belongs to someone else.
  • Terminal coverage protects freight which is stored at specified terminals for a specified time frame, generally 48 to 72 hours.
  • Warehouse legal protects goods that are stored for a longer time at that the terminal coverage and for which a storage is charge is made. The amount of coverage you want is based on the amount of goods stored. Workers Compensation and/or Occupational Accident Injury Coverage to protect the individuals employed or contracted with.

Obviously, if you never store goods or you own your own trailer, you won’t necessarily be concerned about some of these types of insurance. However, it is good to know that these policies are available to protect your risk exposure. Western Truck Insurance Services is always happy to answer any of your questions about insurance to give you the information you need to make an informed decision.

Saving Money on Your Trucking Insurance

Unfortunately, trucking insurance is one of the largest fixed costs of any trucking business. It’s a very important aspect of your business plan. It makes sense to work with your agent or broker to find the best coverage at the best rates to protect the future of your business and family. Although insurance can seem very costly each year, consider how much it would cost to replace your truck or cover the medical bills of a family injured in an accident. Here are some ways to get the best deals on your insurance:

  • Ask for fixed premiums.
  • Pay your insurance up front instead of in installments.
  • Ask if the insurance company has various discounts for various situations.
  • Talk to your insurer about a safety program. Many times, your insurer will help you put policies and procedures to help you run a better program.
  • Your insurer may also give a discount if your company has a written maintenance plan and a good history of looking after your vehicles.
  • Don’t overstate the value of your truck, hoping to get a better deal if it’s damaged in an accident.
  • It may not be cost-effective to have physical damage coverage on older, low value, vehicles.
  • You may also keep your premiums lower by watching your driving records closely. Make sure drivers obey traffic laws to prevent having traffic offences from accruing.
  • Talk to your insurer about where you keep your trucks, especially when parked overnight. A riskier area of the community may mean higher premiums.
  • As your vehicles get older, you may want to look at upgrading to safer and newer equipment.

Trucking insurance might be expensive, but it’s because trucks are expensive and accidents can be very costly;  especially in today’s litigious society. Trucks often carry valuable cargo which are also  subject to expensive losses.

Now that you understand the types of coverage and some of the factors that go into the costs associated with insurance, you can make better decisions about your own policies to cover your business.

Saving Money on the Road- 3 Tips for Truckers

Do you have a money problem? Many truck drivers struggle with their finances, relying on payday advances and loans to pay the bills. If you’re sick of living paycheck to paycheck or want to finally build up some emergency savings, this guide will give you some actionable tips for saving money on the road.

If you’re already in the hole with too much credit card debt or in the habit of payday loans, making financial changes isn’t going to be easy. Stick with it, even when it is difficult. A better financial future is possible, but you are going to need to put in some work to get there.

Stop Eating Out

What does your typical dinner look like? If you subsist on burger, fries, milkshakes, and truck stop fare, you’re not doing your body or your budget any favors. If you spend just $10 a meal, three meals a day you’re spending just over $200 a week on food, just on yourself. Save yourself a ton of money and stop eating out.

Without a stove, microwave, and sometimes without even a fridge, eating on the road can seem impossible, but it is doable. Salads and sandwiches are easy to throw together on the fly. Make a quick trip to the grocery store and pick up a few essentials (packaged lunch meat, cheese, bagged salad mix, salad dressing, peanut butter, bread, snacks, etc.) to stock in your truck. If you don’t have a fridge, stow your food in a cooler and replace the ice as needed.

By skipping the restaurants and eating on your own you can easily cut your food budget in half, or more, and you’ll eat better too.

Make a Budget… and Stick to It

If you want to spend less and save more a budget is essential. A budget does more than tell you what to spend; if done correctly it can help you notice spending problems and curb expensive habits.

When you’re on the road you’ll need two budgets: one for your family back at home and another for your expenses in the truck. Base your budgets on the amount you earn during a low mileage week. On weeks when you earn more, put the extra in the bank or use it to pay down debt. This is an excellent way to build up your savings.

Make sure you’re tracking your spending. Write down each purchase and keep a log of what you’ve spent. Go back to analyze your purchases and see how you stacked up. Find problems and make changes as needed.

Don’t Get Cash Advances or Payday Loans

When you’re in a cash crunch a payday loan is incredibly tempting, but these loans don’t actually fix your cash problems; they just delay them. Borrowing $150 from your next check means that you’ll start that month $150 short. Next month you’ll need to borrow more, just to stay afloat.

Live within your means, even if that means scaling back. Find a way to spend less so you can stop relying on payday loans to get through the month. If you’re currently living in the payday loan cycle, get out by creating a new budget (using your low mile income) and spending the extra to pay down the debt.

Other Ideas for Saving Money on the Road

These three tips are biggies for getting your spending and budget under control, but they aren’t the only ways to save. Try some of these bonus ideas too.

  • Automatic Bill Pay– Automatic bill pay is a lifesaver when you’re on the road. Skip the late fees and know that your bills will always be paid on time.
  • CDL Discounts– Many hotels and restaurants offer CDL discounts. If you’re going to eat out or stay in a hotel, it doesn’t hurt to ask if there’s a discount.
  • In-Network ATMs– If you need to get cash, use an in-network ATM so you don’t have to pay expensive fees. If you can’t easily find access an in-network ATM, use your card as debit when buying groceries and get cash back to skip the fees.
  • Truck Stop Rewards– Truck stop reward programs offer some great perks, including shower credits and free drinks, and many don’t charge for signing up

What are your secret tips for saving money on the road?

How to Get the Best Deal on Your Truck Insurance

Knowing what’s happening in the industry helps Western Truck Insurance Services remain a reliable resource to both clients and prospects. As a result, we are always eager to learn how things are going and what you think about DOT enforcement activities, fuel prices, and the effects of laws, rules, and regulations on your business.

As the market is constantly changing, Western Truck Insurance wants to make sure you get the best deal on truck insurance at your next renewal. Here is a step-by-step approach how we plan to help you.

  • 60 days prior to your renewal date, call us to request an assessment of your situation and risk exposure. Be prepared to allow us to obtain your loss history and IFTA mileage reports. We will need to know the particulars about your business and how much you are paying for your truck insurance.
  • Call your existing agent to inform them that you will be shopping your insurance this year and that you want to be straight forward about it. You want to make sure that you are getting the best price on your renewal quote. Also, let them know that you expect the renewal quote to be available for review at least one month before the renewal date. For emphasis, let them know that you have Western Truck Insurance also working on your behalf.
  • The timing of when you receive your renewal quote speaks volumes about the agent and insurance company. If they are really working for you, they will get your renewal quote to you early enough for proper consideration. “Early enough” is 3 to 4 weeks before your renewal date. Once you receive your renewal quote, call us with the quote amount so that we have complete information to negotiate with. Insurance companies will compete for your business if they know what they are up against.
  • When you get our quote amount, compare the two quotes noting all the differences. We will help you understand the various aspects to the quote. If our number is lower, take it to your existing agent and ask him to beat it. If our coverage levels are better, ask to match them.
  • After you have given your existing agent a second chance, share this new number with us so we can go back to our underwriters and attempt to negotiate a better deal for you.
  • Once you receive our number a second time, you will be ready to make an informed decision. Both brokers involved have been treated fairly and have had two chances to give you their best quote. A fair amount of conversation, analysis, and negotiation will have taken place between you and us and your existing agent by this point.

Consider all you have learned. How do feel about the advice you have received? When fully considering price, coverage levels, quality rating of the insurance companies, and your comfort level with the agents involved… which is the best deal?

  • Make your decision and inform each party.

If you follow this approach, you will get the best deal around. Try it and see for yourself!