Stay Safe for Less: Strategies for Lowering Costs of Commercial Truck Insurance
As a truck owner, you’re probably aware that truck insurance is more expensive than personal auto insurance. However, there are ways to reduce costs. In this article, we’ll explore strategies to lower coverage costs so you can stay safe on the road without going over budget.
Why insurance costs soar for commercial trucks
Insurance premiums for trucks are affected by various factors, such as the vehicle’s make and model, age, usage, and the driving history of those who operate it. The value of the truck, the type of goods carried, and the operating radius are also factors that influence the premium.
Commercial truck insurance tends to be more expensive than personal auto insurance because of its size, use, and overall coverage value. Trucks are larger and heavier than personal vehicles which makes them harder to control. They’re also used more often, sometimes by different drivers. More time on the road means increased exposure to accidents and other risks associated with driving, hence even higher insurance premiums. Due to their size, repair or part replacements for commercial trucks are also generally more expensive.
Specialised coverage is also a factor when it comes to higher insurance premiums. Since commercial trucks often transport valuable cargo, insuring against cargo damage and theft adds to the overall cost. Each of these aspects adds to the risk profile, which ultimately determines the premium you pay. If your truck has additional safety features installed, it may help lower the risk and result in lower premiums.
Strategies for lowering insurance rates
Schedule regular truck maintenance
A well-maintained truck is seen as a lower risk so by scheduling regular maintenance, you can reduce risk of accidents and potentially lower insurance costs over time. And don’t forget to document all maintenance efforts with your insurer to maximise potential cost savings on insurance premiums.
You can also learn more about how you can keep your truck in top shape here.
Install anti-theft devices
It is important to consider the security of your truck insurance, as theft and cargo damage are significant risks that you want to protect yourself from. In December of last year, a donation truck owned by Drought Angels charity in Brisbane was stolen which resulted in the damage of Christmas donations for Australian farmers. In the same month, another thief steals a truck which turned out to have 10,000 Krispy Kreme Doughnuts in Carlingford. The latter story seems funny, but the threat of theft is very real and greatly impacts insurance premiums.
So if you haven’t already, consider investing in security features such as GPS tracking systems and alarms for your trucks. Kill switches to immbobilise your truck engine is also a good back-up security. These can help prevent theft and improve the chances of recovery in case of theft. Some insurance providers also offer discounts to trucks with anti-theft devices so you can lower coverage costs.
Assess your truck driver records
It’s not just the brush but the painter. A well-maintained truck is great but the driver also plays a pivotal role when it comes to determining the overall insurance costs. Insurance providers factor in their experience and driving records during risk assessments. The main reason being that good driving habits generally lowers every risks associated with driving. The more experienced the driver and the cleaner their record, the less likely they are to cause accidents which then reduces the probability of claims. And because they’re less risky, insurance providers may offer lower insurance premiums.
Choose the right insurance provider
When it comes to finding an insurance provider for your trucking business, lower coverage costs don’t always mean it’s the right fit. It’s important to do your research before jumping on the offer. Start by searching online and asking other trucking business owners for recommendations. Once you have a list of potential insurance providers, request quotes from each one and compare their coverage to determine which will best suit your needs. Check for any policy limits, exclusions, deductibles, and fees. The more informed you are, the better equipped you’ll be to negotiate with insurance providers.
Other than the price and coverage, their customer service is another important factor to consider when choosing an insurance provider. Read up on customer reviews. Feedback from policyholders can provide you insight into how well the insurance provider handles claims and their overall service quality.
As a prospective customer, you can also try reaching out to their customer service and ask questions to get an idea on what your experience would be like with them in the long run.
- Are they accessible via email and phone?
- How long does it take for them to respond to your inquiries?
- Are they able to provide clear answers?
Getting insurance is a huge long-term financial commitment that requires careful review and assessment, so it’s always good to have help. Ryno Insurance can help you shop around insurance providers more easily so you can find coverage that fits your business needs. Reach out today and get insured!