While it’s great to have commercial truck insurance to protect your employees as well as your business, you’ve got to make sure you’ve got the right type of insurance and that you work with an agent who knows what she or he is doing to ensure you’re getting the protection and peace of mind you need. Here are a few tips for selecting the right trucking insurance.
You Have Control Over How Much You Pay
One of the first things you should realize is you have more control over the final price of your policy than you might realize. For instance, if your trucks are more expensive, you can expect your premiums to be more expensive as well, which makes perfect sense when you think about it. There’s also the fact that lighter trucks don’t cost as much to insure as heavier trucks.
How you use your trucks also influences how much your insurance will cost. Companies that are service-focused or specialize in retail purposes often don’t pay as much for coverage as businesses that deliver products and goods. While you most certainly shouldn’t base your business on how much you have to pay for insurance, such information is beneficial when determining the ongoing costs of your company.
Ask What Kind of Coverage You’ll Have
Because not all insurance companies operate the same way, clearly ask your agent what kind of coverage the truck insurance policies have. Some of the most common coverage types include:
- Towing and labor costs
- Bodily Injury & Property damage liability
- Comprehensive & Collision coverage for damage done to your vehicles.
- Loading and unloading liability
- Non-owned or Hired Auto coverage, in case you ever need to rent a vehicle
- Medical payments
Here is where you want to be completely open and honest about the overall nature of your business, where your business is now and where you’d like to take your business in the future; let your agent get to know you and your trucking company inside and out. Make sure the insurance company can offer you the coverage you need.
Explore Your Payment Options
Your company finances will play a big part in how you pay for your insurance. While you can always pay your policy in monthly installments, it’s often less expensive to pay your annual premium in a single lump sum, mainly because insurance companies often offer discounts for doing so. Besides monthly and annually, you might also have the option of paying bi-annually. Once you know which paying option works best for you, see what options your agent can offer so you get the best deal with the coverage you need. Speaking of which…
Determine How Much Liability Coverage You Need
Liability plays a big part in your insurance policy and your peace of mind if you ever have to file a claim. Again, here is where you want to offer full disclosure to your insurance agent about your business and your business operations. Once you know how much liability coverage you require, compare costs and specific coverage details with the insurance companies you’re considering.
Know Your Limits For General Liability
Another key to getting just the right truck coverage is to know your policy limits; specifically, your occurrence limit and your aggregate limit. Occurrence limit is how much you’ll pay to make a single claim while your aggregate limit is the full amount your coverage will pay for all claims made in a single year. This information helps you determine if you should make a claim for an incident, consider paying the damages on your own or seek a viable alternative without putting your coverage at risk.
Find Out About the Cost of Your Deductible
Because no insurance policy is complete without a deductible, find out what yours will be. While you can always raise the cost of your deductible to lower your insurance premiums, it shouldn’t be so high that you can’t actually afford to pay the deductible should you ever have to file a claim. In any case, it’s best that you always have enough saved up in a business account that you can easily and quickly pay your deductible if need be.
Know How the Claims Coverage Works
To get back to business as soon as possible after an accident, learn how to file a claim the right way and do so in a way that you stand the best chance of having your claim accepted. Generally, it is best to seek assistance in claim presentation from your agent. . Additionally, ask if you can start the claim online or through a phone app to speed up the process in case an adjustor isn’t able to get out to you or your driver ASAP.
It might take some time to find the right truck insurance, but the hard work is certainly worth it. Use these tips and your own judgment to find the best fit.