What Are Some Tips for Getting the Best Commercial Trucking Insurance Rates?
Insurance is essential to running a successful trucking company. The Federal Motor Carrier Safety Administration requires a certain amount of commercial truck insurance for a trucking company to operate legally. There are a few basic tips for getting the very lowest rates on your Insurance.
Only Do Business With a Company That Knows the Trucking Industry
When you do an internet search for trucking insurance, about a million companies will come up. However, you should only do business with a company that actually knows the trucking industry. You should find an insurance company that specializes in trucking. You should always ask the agent that you deal with how many years of experience they have in the trucking industry.
An even better idea is to go through a trucking compliance company that also offers insurance or has a relationship with an insurance company. People who run compliance companies will be able to tell you exactly how much insurance you need for your particular business. A compliance company will keep you apprised of any changes to trucking laws. They will be able to tell you if you need to change something about your policy.
Hire the Best Drivers
Truck drivers and drivers of passenger cars have one thing in common, their insurance will go up when they have an accident. If you hire drivers with stellar driving records, you will get a better insurance rate. You can also sleep easier at night. The FMCSA requires you to run all of your driver's records for the last 12 years. You must do this in every state in which they have lived. You must keep their driving records on file for at least two years after they have left their employment with you.
You are also required to contact all of their job references before hiring them to verify employment on them. What their previous employers tell you about them can inform you as to whether or not they are a driver that is worth hiring.
Bundle Your Insurance
Trucking companies need more insurance than most other businesses. In addition to the FMCSA’s legal requirement that you carry liability insurance, you will also need to have cargo insurance, physical damage insurance, reefer truck insurance, and general liability insurance. Therefore, it is best to bundle your insurance with one company. They will be able to get you the best rates possible.
Map Your Trucking Routes
The United States is a very diverse place. You can travel on the roads of one state and be quite a bit safer than you would be driving in another state. When you plan your trucking routes, you should take the safety of the roads in the states you will be traveling through into consideration. It helps to have someone on your team who can figure out how to get things from one place to another in a way that is the most cost-effective and safest.
A professional route planner will be able to look at all the different factors that go into the cost of the trip. Not only will they look at the mileage of a trip, but they will also look at the trucking taxes in the states you pass through and the safety of the roads.
Consider Updating Your Fleet
Just like new cars, new trucks have more safety features and newer parts. Therefore, insurance companies will give you a lower rate on both liability and physical damage insurance when you own newer trucks. You should weigh the cost of buying a new vehicle against how much insurance will cost as well as the cost of repairs.
Nobody likes shopping for insurance or having to pay for it. However, a good insurance package will ensure the safety of your drivers in the general public. You will have much smoother audits with the FMCSA and you will have a great reputation in your industry.