Six Mistakes That Could Unnecessarily Drive Up Commercial Truck Insurance Costs
Insurance costs are a significant expense for any commercial trucking operation. If you can bring down your insurance costs, your commercial trucking operation is going to make more money every year. Commercial trucking companies often make mistakes that unnecessarily drive up insurance costs. The following are six mistakes you can avoid to bring down your commercial trucking insurance costs:
Failing to get numerous quotes from different companies
There are many different companies out there that offer commercial trucking insurance. You need to explore your options before purchasing a particular policy. Not only should you check options with different companies, but also you should get multiple quotes from the same companies. This way, you can explore the different expenses and insurance features available with each company you consider buying insurance through.
Employing drivers without a great deal of experience
Your insurance provider is going to look into the driving record of all the drivers working for your company. They're probably going to charge you more if you're employing numerous drivers without a lot of experience. More experienced drivers will be less expensive to insure, so you should be looking out for them when you're doing your hiring.
Taking routes through high population areas
Another thing insurance companies will analyze when giving you a quote on commercial trucking insurance is where your truck routes are. Accidents are more likely around crowded metropolitan areas like New York and Chicago. Therefore, insurance providers may charge you more if you're taking routes around such areas frequently. Stick to lower traffic areas, if possible, to reduce your rates.
Having a fleet of old trucks
Your insurance provider may consider older trucks to be riskier because their safety features are not as good as those of newer trucks. It might be a good idea to update your fleet if you think your insurance costs are too high.
Not taking advantage of available safety features
There are numerous safety features you may be able to take advantage of like driver safety training for your employees and warning stickers. An insurance provider might be willing to reduce your commercial trucking insurance costs if you show that you are taking advantage of any such safety features.
Setting your deductible too low
The lower your deductible is, the higher your insurance is going to cost. If you feel that the chances of one of your vehicles getting into an accident are low, you might want to raise your deductible to reduce insurance costs.