Trucking insurance premiums are a significant expense for trucking companies, especially for smaller fleets looking to keep their head above water in such a volatile industry. Regardless of how clean a truck driver’s record is, commercial trucking insurance continues to increase for owner-operators. Unfortunately, commercial truck insurance is not one of the business expenses that trucking companies can do without.
However, there are ways in which commercial trucking premiums can be reduced while still getting the most out of an effective insurance policy. Here are some ways in which trucking companies can reduce their trucking insurance costs and premiums.
Verify Employment History
A truck driver who is constantly changing companies does not signify that they are on the industry’s right professional path. Drivers who have served extended periods with few trucking companies are looked at as more stable with a cleaner history and fewer employment gaps to review. This also implies that they are experienced with different trucking equipment and driving routes.
Hire Experienced Drivers
Expert trucking insurance providers like Western Truck Insurance Services, Inc. consider years of driving experience when determining premiums. Experienced truck drivers can better handle adverse weather and other difficult driving situations. Typically, trucking insurance providers look at truck drivers and the companies they work for as less risky with more experienced drivers who have at least two years of good driving.
Use Newer Trucks
Your trucks’ age, condition, and value impact the decision when determining your commercial trucking insurance premiums. Regular upkeep and installation of new equipment on trucks can help with the premiums. It helps to stick to newer trucks, usually under ten years old. The truck should also have modern equipment whenever possible, including accident avoidance technologies.
Mapping Trucking Routes
Speaking of trucking routes, the routes on which trucks operate have an impact on commercial insurance premiums. Factors such as frequency of inclement weather and population density impact the risk level of a trucking route. It helps to avoid high population metro areas and places prone to bad weather when mapping out routes.
Consider a Higher Deductible
If the insurance premium cannot be reduced after implementing the above steps, consider adjusting your trucking insurance policy—a higher deductible results in lower trucking insurance premiums altogether. However, there will be higher upfront costs if an accident happens. If trucking companies decide to choose this option, it is better to select a deductible your company can afford to front without added burden.
About Western Truck Insurance Services
Western Truck Insurance Services is a commercial truck insurance agency with roots dating back to 1954. We have evolved into a highly respected, professionally managed, truck, and transportation insurance brokerage. The hallmark of our organization is our desire to provide unparalleled service. We go way beyond what you expect to receive from an insurance brokerage. Equipped with state of the art automation, Western Truck Insurance can provide you with lightning fast truck insurance quotes, customer service, Insurance certificates, and coverage changes. Contact us today at (800) 937-8785 to learn more.