One of the most common myths in the trucking industry is that trucking insurance premiums are set in stone. However, this is far from the truth. In reality, there are several ways to lower your trucking insurance premiums. Let’s debunk this myth and explore how you can potentially reduce your insurance costs.
Why Trucking Insurance Premiums Are Not Set in Stone
Insurance premiums are calculated based on risk assessment. The higher the risk, the higher the premium. However, risk is not a fixed factor. It can be influenced by various elements such as driver experience, age of drivers, driving records, and even the age and condition of the trucks. Therefore, by managing these factors effectively, it is possible to influence your insurance premiums.
How to Lower Your Trucking Insurance Premiums
Working with an insurance agency can provide valuable insights into how to lower your premiums. Here are some strategies that can help:
- Employ Experienced Drivers: Experienced drivers are often seen as less risky by insurance companies. Hiring drivers with at least 2 years of CDL experience can help lower your premiums.
- Consider the Age of Your Drivers: Very young or very old drivers tend to be involved in more accidents. Employing drivers between 30 and 62 years of age can help reduce your premiums.
- Hire Drivers with Clean Driving Records: Drivers with fewer accidents and violations are less likely to be involved in future accidents. Hiring such drivers can qualify you for lower cost truck insurance.
- Use Newer Trucks: The age, condition, and value of your trucks also influence your premiums. Using newer trucks (10 years or newer) with modern equipment whenever possible can help reduce your premiums.
- Stay in Business: Simply staying in business under the same name and maintaining your operating authority can result in lower trucking insurance premiums because new trucking operations are considered riskier to insure.
Outlook
The myth that trucking insurance premiums are fixed is just that – a myth. By understanding the factors that influence risk and working closely with an insurance agency, it’s possible to lower your trucking insurance premiums. By cooperating and working with a reputable trucking insurance agency like Prestige, we can help in leveraging your information to get you the best coverage at the best price.