One of the most important choices you make for your commercial trucking operation is selecting a commercial trucker insurance policy. Purchasing commercial trucker insurance allows you to meet your legal obligations while also protecting the financial future of your commercial trucking operation.
It's important to look into all pertinent factors when selecting the right policy for your operation. The following are six major factors when you're looking for the right commercial trucker insurance policy.
The driving records of you and anyone who drives for you
Any commercial truck insurance provider is going to want to review your driving record and any employee driving records before insuring you. If you and your drivers have clean records and extensive experience, your insurance costs will be lower.
The distances you're transporting cargo
Commercial truck insurance providers will typically classify a trucking operation as either local, intermediate, or long distance. If you're regularly transporting cargo long distance as part of your commercial trucking operation, you'll probably pay higher commercial truck insurance premiums than if you were only transporting cargo locally.
The type of cargo you're transporting
If you're typically transporting highly valuable or hazardous cargo, your insurance costs are likely to be higher. Your premiums are likely to be especially high if you're transporting Class A or Class B cargo. Class A cargo is any cargo that carries a risk of detonation and Class B cargo is any cargo that is considered flammable.
The type of truck(s) you're working with
The condition of your trucks as well as the presence of any safety features on your trucks will be an important factor.
While newer and more valuable trucking equipment is typically more expensive to insure, safety features like collision warning systems, automatic emergency braking systems, and lane departure warnings can bring down costs.
The types of coverage you need to carry
There are numerous types of coverage you can carry on a commercial trucker insurance policy. Liability coverage is the most basic type of coverage that you are required to carry by law.
There are also a few types of non-trucking insurance that commercial trucking operations can carry. These types of coverage are designed for situations when the truck is not currently transporting cargo. They include bobtail, occupational accident, and motor truck cargo coverage.
Commercial truckers should familiarize themselves with these optional coverage types and determine which are necessary for their operation.
The premium costs
Insurance premiums for a commercial trucking operation are a recurring business expense. For many trucking companies, insurance premiums are among the most expensive overhead costs. It's therefore important to bring premium costs down where possible and factor insurance costs into the company budget.