7 Ways To Reduce Your Commercial Truck Insurance Premium | Paramount Exclusive Insurance
post-template-default,single,single-post,postid-15733,single-format-standard,ajax_fade,page_not_loaded,,hide_top_bar_on_mobile_header,wpb-js-composer js-comp-ver-5.0.1,vc_responsive

7 Ways To Reduce Your Commercial Truck Insurance Premium

7 Ways To Reduce Your Commercial Truck Insurance Premium

For commercial trucking companies, insurance is one of your biggest expenses. Luckily, you can rely on these 7 ways to save on insurance and lower your costs.

Hire Seasoned Drivers

Driving experience is a key factor when insurers determine commercial truck insurance premiums. They have more time traveling and experience dealing with risks.

Seek drivers with a minimum of 2 years of commercial driving experience between the ages of 30 and 62 years old. Younger or older drivers can trigger higher premiums.

Check Driving Record & Employment History

Always consider a potential employee’s driving record before you hire too. A clean record is preferable, but if they have minor moving violations ensure it’s less than 2 within 3 years.

Look for stable individuals with a solid employment history. The longer they’ve driven specific routes and handled commercial vehicles safely, the better. A good driving record and a consistently safe driver are favorable signs for insurers.

Pay Your Full Premium

Paying your premiums in installments might be convenient, but you’re also missing out on substantial savings. When you pay your full premium upfront, insurers often offer up to a 15% discount.

Your insurance premiums are always highest in the first year, and drop gradually each year if you maintain a good safety record. Budget for the expense and enjoy a lower premium when you pay upfront.

Operate Under the Same Business Name

Insurance companies want to see how your business performs when they determine rates. If your business changes names, you’re treated like a new, unproven and riskier business which leads to higher premiums.

Consequently, it makes sense to maintain your operating authority for lower insurance premiums.

Create a Culture of Safety

An effective safety program ensures the well-being of your employees and trucks. Establish and distribute your company’s safety policies, implement training, and monitor performance. Your program must start from the top down and involve all levels of business.

Employees need to understand what’s expected from them and follow safe driving practices. Besides initial on-board training for new hires, consider an annual refresher course and a retaining course for drivers involved in an incident or that fail to demonstrate safe driving habits.

Improve & Monitor DOT Score

Your DOT score through the Federal Motor Carrier Safety Administration has a tremendous impact on your insurance premiums. Therefore, anything you can do to improve and maintain a good score can benefit your business.

Keep your equipment current, comply with hours-of-service, teach driver safety, and monitor your score. These basic measures can reduce accidents, improve your DOT score, and reduce your insurance premiums.

Rely on an Independent Insurance Agent or Broker

Independent agents and brokers work for you – not the insurance companies. They access many quality products specifically for your industry and can suggest the best for you at the most reasonable cost.

A good insurance professional looks for discounts for drivers with their CDL and balances deductible and premium for affordability and ample protection.

They can also bundle your vehicles under a single policy for even better rates. Since they tailor policies to your particular business, you only pay for what you need – not unnecessary bells and whistles.

At the very least, you’ll need liability, property damage, bodily injury, and cargo insurance. However, this is barebones coverage and your business could still be at risk.

Talk to your agent or broker. They’ll analyze your risk and align your insurance to your needs. You can have excellent coverage and stick to your budget.

No Comments

Post A Comment