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Top 11 Ways to Reduce Trucking Insurance Premiums
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Top 11 Ways to Reduce Trucking Insurance Premiums

Looking to get the most out of your trucking insurance policy? Driver experience, age and upkeep of vehicles, and the time your operation has been in business are key factors insurance providers use to determine premiums. Consider the tips below to get the best trucking insurance coverage at the lowest possible cost:

  1. Employ experienced drivers. Years of driving experience is one of the key factors insurance providers use to determine truck insurance premiums. Having more experienced truck drivers implies that your drivers can more easily deal with inclement weather, along with other less-than-ideal operating conditions. Tip: hire drivers with at least 2 years of CDL experience.
  2. Consider the age of your drivers. Truck drivers who are very young or very old tend to be involved in more accidents than average, and as a result employing these higher risk demographics will result in higher trucking insurance premiums. Tip: hire drivers between 30 and 62 years of age.
  3. Hire drivers with clean driving records. Drivers who have been involved in fewer accidents are less likely to be involved in further accidents in the future. To keep trucking insurance costs down, consider drivers with fewer accidents and violations. Tip: hire drivers with no more than 2 minor moving violations in 3 years.
  4. Verify driver employment history. The number of years a driver has worked with different companies is a key factor in determining truck insurance premiums. The chance of an accident is reduced if the driver is experienced with specific routes and equipment. Tip: verify each prospective driver’s employment history and references.
  5. Consider your routes. The different routes on which your trucks operate can impact your trucking insurance premium. Factors include population density, frequency of inclement weather, and so on. Tip: avoid high-population metro areas like New York, Chicago, Houston, and Los Angeles.
  6. Use newer trucks. The age, condition and value of your company’s vehicles are a factor in determining trucking insurance premiums. Upkeep of trucking fleets and recently installed equipment is also a factor. Tip: utilize newer trucks (10 years or newer) with modern equipment whenever possible.
  7. Stay in business. Simply staying in business under the same name and maintaining your operating authority will result in lower trucking insurance premiums because mew trucking operations are considered more risky to insure. Tip: stay in business and don’t change or revoke your operating authority.
  8. Keep a clean DOT safety record. Your DOT safety record includes your owner-operator or fleet DOT safety rating, Safestat and Inspection, Selection (ISS-2) scores, violations, and so on. Tip: monitor your DOT safety record and maintain a good standing.
  9. Employ other safety features / programs. Employing safety features like warning stickers, company safety programs and driver safety training shows insurance providers that safety is important to your organization. Tip: periodically evaluate the safety features your trucking operation employs.
  10. Consider a higher deductible. If you’ve addressed the factors above and are still seeking lower premiums, adjusting your policy is the next place to consider. A higher deductible will result in a lower trucking insurance premium, but you’ll incur higher upfront cost in the event of an accident. Tip: Use a deductible of at least $1,000 — consider a higher deductible such as $2,500.
  11. Choose the right insurance agent. Last but not least: not all insurance agents are created equally. Consider an agent with access to many insurance carriers and specializing in trucking insurance in particular. Choosing a trucking insurance specialist is critical both to getting the right coverage and getting the most value for your dollar.

A proud partner of eCapital, Colonial Insurance is one of the nation’s premier providers of trucking insurance for owner-operators and trucking fleets. Check them out in ourMarketplace by clicking here.

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