Trucking insurance premiums can put a hefty dent in your business pocketbook. With all of the other business expenses that you may be able to cut out, commercial truck insurance simply is not one of them; however, there are many ways you can reduce your trucking insurance premiums while still getting the most out of your semi truck insurance policy. Insurance providers take many factors into consideration when they determine your trucking premium, and knowing what insurance providers look for can help you save money by getting reliable coverage at an affordable cost. Here are some tips to help you reduce your trucking insurance premium. And remember, you can always call Forerunner Insurance Group, Florida’s Top Rated Local® commercial insurance provider, to speak to our friendly and knowledgeable agents about how to save on your trucking premiums.
Employ Drivers with Good Driving Records
When driving trucks for a living is your career, you’re bound to have some sort of accident or mishap while on the road. For many, however, accidents can happen more frequently due to driver error, driving in regions that experience inclement weather like snow and ice, or driving in high-traffic areas. While some of these factors can be considered a natural event that can’t be controlled, other factors can be. When hiring truck drivers for your company, you’ll want to be sure to hire truck drivers with clean driving records and with little-to-no history of accidents. Hiring drivers who have been in fewer collisions could mean they will have a less likely chance of being involved in accidents in the future. What’s more, having a clean driving record tells possible employers and insurance providers that a person is responsible, reliable, and trustworthy. As we mentioned, driving for a living increases the risk of being involved in a traffic accident, so be understanding when a hiree has one or two minor traffic violations within a three year period, but avoid hiring drivers with more than two accidents in a three year time frame. This will help keep your insurance premiums down which can save you money.
Hire Experienced and Reliable Drivers
Similar to hiring drivers with good driving records, it is better to hire experienced drivers with at least two years of CDL driving experience. Hiring experienced drivers can help ensure that when, not if, they encounter rough roads, high traffic interstates, inclement weather, and other dangerous scenarios, they will be better equipped to handle them in the best way possible. Reliability is another positive characteristic to look out for when hiring drivers. If you can count on them to work hard, arrive at work on time, get to their deliveries on time, and so on, you can probably count on them to handle hazardous driving situations. Both of these aspects are important when insurance providers are determining insurance premiums, so the more experience a driver has, the better, as hiring experienced drivers can definitely reduce semi- truck insurance premiums.
Follow Up on Employees’ Work History
We mentioned the importance of reliability in the last paragraph, and what better way to gauge a possible employee’s reliability than by verifying their driver employment history. Unfortunately, there is a high turnover rate in the trucking industry, which means truckers are constantly switching employers. This can make it difficult for employers to track a driver’s employment history, but effort should still be given. The number of times a driver has switched trucking companies can significantly affect insurance premiums. Therefore, you will want to verify a potential driver’s employment history and follow up their references. Check their record for accidents, accountability, routes they have driven, and the types of loads they have carried. If you notice anything suspicious or if things don’t match up, you might pass on them and move onto a driver with a solid driver employment history.
Consider the Advantages of Higher Deductible Policies
For many companies, higher deductible policies are often rejected in favor of paying less on the monthly and annual premiums; however, higher deductibles around $2,000-2,500 can significantly lower your semi truck insurance premium. Keep in mind that this can affect what you pay upfront when involved in a collision. If you choose a higher deductible policy, try to set aside funds that could be used in the case of an accident to cover any costs that will incur immediately so that you are covered.
Maintain Your Operating Authority
When you revoke or change your operating authority, it could mean higher semi truck insurance premiums. Why, you ask? When insurance providers determine a trucking policy, they look at how long a company has been in business and how long a driver has been an active operating authority. Insurance providers view new trucking operations as risky, which means they are more expensive to insure. This is partly because, going back to the experience aspect, a new trucking operation can be viewed as one with little-to-no experience. As we mentioned, experience is one of the most important factors when an insurance provider determines a trucking policy. If you have an emergency and can’t keep up with your business, try at all costs to stay in business and keep your operating authority active, rather than revoking it, as this can reduce trucking insurance premiums.
Call Forerunner Insurance
Another great way to minimize your commercial truck insurance premiums is by talking with an agent at Forerunner Insurance. Our friendly and knowledgeable insurance experts can help you get the right policy at an affordable cost. Following these tips and mentioning these factors to us can make us aware of the positive aspects of you, your company, and your drivers. As we look at your record, we will make note of these factors and consider them as we find the right policy for you. If you want to save on semi truck insurance premiums, call Forerunner Insurance Group today and let us help you find the best, most affordable trucking insurance plan for you and your business. Contact us, Florida’s Top Rated Local® commercial insurance group today and learn how to start saving!