Liability insurance is legally required to drive a truck professionally in the United States. If you own a fleet of trucks, you will want to make sure your policy covers each of the rigs.
An insurance premium is the amount of money you pay for the policy. A liability insurance policy for a commercial truck is between $5000 and $7000. Several factors may determine how much you will pay for liability insurance.
The Deductible
A deductible is the amount of money you will pay before your insurance kicks in. According to Simplex Group, it is one of the primary factors in determining what your insurance premium will be. Insurance deductibles are normally between $500 and $2000. You can reduce the cost of your coverage significantly if you take a $2000 deductible. Taking a high deductible is a good idea if you are a new trucking company.
The Driver’s Age
Hiring drivers for a trucking company can be a tricky business. You are not allowed to discriminate against people who are over 40 in the United States. However, insurance companies are allowed to base the cost of an insurance policy on the driver’s age. If a driver is under 30 or over 65, the insurance premium will be higher, even if it is a commercial policy.
When you buy a commercial policy, you will list all of the trucks in your fleet on the insurance forms. You will also provide the names, ages, and driving records of the people who will drive each truck.
Driving History and Experience Level
When an individual drives a personal vehicle, their insurance policy premium is based largely on their driving history. The same is true for commercial policies.
When you hire a driver for a commercial trucking company, the Federal Motor Carrier’s Safety Administration requires you to review the last three years of their driving history in every state they have lived in. You cannot hire a driver who has a suspended license in any state.
If you hire people with a great driving record, you are much less likely to have to use your insurance, your hauls will be on time, and your trucks will be well cared for. Insurance companies do not want to take a risk on a bad driver. Even if a driver has no suspensions or a bad record, you may not be able to find insurance for them.
It is also a good idea to hire experienced drivers. Hiring kids out of trucking school seems inexpensive, but your insurance will be higher, and they are more likely to have accidents and make mistakes when it comes to recording their hours.
Years In Business
Unfortunately, you are likely to get a higher insurance rate if you are a new business. Insurance companies want to know if they are dealing with a stable company that has a proven track record of managing its fleet. Once you are established as a reputable business, your insurance rates should go down.
Training Programs
You will get lower insurance rates if you provide extra training programs for your drivers. It is a good idea to have monthly safety training. The more you can prove to an insurance company that you are committed to having a safe work environment, the more likely they are to consider lowering your rates.
Safety programs may include defensive driving lessons or lessons on how to maintain a vehicle during a haul. You can offer your driver’s classes in proper loading and unloading techniques as well.
The Age and Condition of Your Trucks
The newer your trucks, the more safety features they are likely to have. The more safety features a truck has, the less likely it is to be in an accident. Newer trucks will also have newer parts, and that can have a major effect on how safe a vehicle is.
If you cannot afford new trucks, you should at least try to update the tires, brakes, and lights. Updating the parts of a truck can also drive down the insurance rate.
Insurance is a necessary expense both at home and at work. If you take a few simple precautions, your insurance rates can be reduced significantly.
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