What is the cost of trucking insurance?
The most common question asked by trucking companies and owner operators and if you have the same question, let's take a further look together and learn more.
First, lets break down business types and trucking coverages:
- For-Hire Trucking - Trucking companies earn the majority of your business income for delivering cargo for a fee.
- For-Hire Specialty - Trucking companies that specialize in a trucking niche for example: logging, auto hauling, waste hauling, and more.
- Primary Auto Liability - Coverage for a trucker that is transporting goods or cargo that is under dispatch.
- Non-Trucking Liability - Coverage for a trucker that is leased on to another trucking company, non-trucking liability covers you while you're bobtailing when not under dispatch.
Insurance cost factors
Here's a list of factors that might make a difference in the cost of your trucking insurance.
1. US DOT Experience
When you obtain a quote for new venture trucking insurance, you will more than likely find it to be higher. This is primarily due to insurance companies not having a track record of the risk of your business. For example, someone that has had their own authority active for 3-5 years could provide loss runs to see if they have had any claims.
A fresh company can not do that, so insurance carriers have less data to calculate your trucking premium.
2. Cargo / Commodities Hauled
The commodities that you transport can increase your trucking insurance premium more than others. For example, a trucking company hauling automobiles is going to carry a higher premium rather than a trucking company that hauls agricultural commodities.
It is extremely important to disclose the cargo that you haul to make sure your insurance policy is rated correctly, and to ensure you have coverage in the event of a claim.
3. Trucker Driving History
Your driving history plays a very big role in providing affordable trucking insurance. Accidents, speeding tickets, and other violations can cause insurance premiums to be higher.
Monitoring your driving can save you thousands of dollars and even more important, protect your life and other motorists.
4. Mile Radius
Truckers that operate on a large mile radius or typically known as 'long haul trucking' will pay a higher insurance premium due to the broader exposure. Lower rates for example would be an operation that is a local or 'short haul trucking' operation.
5. Picking the right insurance partner
Choosing the right insurance partner is important for properly rating your trucking policy and ensuring you're covered while offering exceptional customer service. Contact Russell Agency or get a quote online today.
A few things to consider for your trucking insurance policy:
Review your coverages annually
Reviewing your policy coverages annually keeps track of your coverage limits, values, and deductibles. At Russell Agency, our in-depth policy reviewal for policies provides you security and constant communication.
Learn more about our risk assessment strategy.
There is several discounts available on commercial transportation and trucking insurance policies including:
- ELD ( Electronic Log Device ) Discount - Learn more about Russell Agency and Keeptruckin partnership, and find out how you can save money on your trucking insurance.
- Business experience discount - If you have had your authority active for 3 years or more, you can receive a business experience discount.
- Paid in full discount - Depending on the carrier, some offer a paid in full discount that can save you 15-20% a year. This is something to highly consider to lower your premium.
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