10 things you need to know about truck insurance

Truck insurance can seem very overwhelming and confusing. Whether your business has dump trucks, tow trucks, semis, or auto haulers, dealing with the insurance for your truck operation is probably not something on your list of favorite things to do. Insurance often comes with the side effects of stress and frustration, which is why our goal is to make truck insurance easy. That being said, we’ve compiled a list of ten things to know about truck insurance.

1. There are many different coverages available for trucking businesses.

There are a lot of different types of truck insurance out there, and they all protect businesses from different risks. Since each truck operation is unique, each trucking business needs a customized insurance plan made up of the coverages they need. As you can imagine, a long-haul trucking business will need a different insurance plan than a tow truck business.

2. Safety can help you get lower truck insurance rates.

Having a high standard of safety at your business can help you avoid accidents and claims. Having claims can cause your insurance rates to rise, so by preventing accidents, you can keep your insurance rates down.

Some things that you can do to commit to safety are…

  • Creating and enforcing safety policies
  • Providing driver training and continuing education
  • Holding monthly safety meetings
  • Providing each driver and employee with an employee handbook
  • Having GPS in your trucks to keep an eye on speed
  • Implementing a preventive maintenance schedule
  • Having pre-trip vehicle inspections

3. Location, radius of operation, and crossing state lines can affect your truck insurance rates.

An insurance company will want to know where you operate and how far you go. These details play a part in your rates, as does whether you cross state lines.

4. Your drivers have a big effect on your truck insurance rates.

Since your drivers are the ones operating your trucks, they have an impact on your rates. If your drivers have MVRs (Motor Vehicle Records) that show speeding tickets or accidents, you could be facing higher truck insurance rates because those drivers are seen as being more of a risk. That’s why it’s so important to have a thorough hiring process. You want to make sure that you hire people who are safe drivers.

5. Your rates depend on what kind of trucking you do.

Your line of work is a factor in your truck insurance rates. The type of work you do determines what risks you face, which influences the coverages you need for your business and the costs of those coverages.

6. Physical damage coverage will help you get your truck back on the road if it’s damaged.

Physical damage insurance consists of two parts: collision coverage and comprehensive coverage. Collision coverage will help you get your truck repaired or replaced if you’re in an accident or if you hit another object. Comprehensive coverage will cover damages from losses not caused by an accident, such as vandalism, theft, fire, or falling objects (think trees.)

Now, keep in mind that your auto liability only covers the other driver and their vehicle if you’re in an accident (or the cost of repairing or replacing other property that you might damage.) Your truck is not covered, so to protect your investment in your vehicles you should consider physical damage coverage.

7. Filing a lot of small claims can make your rates go up.

If you file a lot of claims, even small claims, you’re at risk for having your truck insurance rates go up or having your coverage get nonrenewed. When you face a minor loss, it’s important to consider whether or not it’s worth filing a claim (depending on your deductible) and if you could handle the expense of the loss on your own. Try to reserve your insurance for major losses, things that you can’t handle on your own.

8. You might get a discount on your insurance if you get all of your coverages from the same company.

Your trucking business faces a lot of risks, meaning that you need many different coverages to protect you from them. You might think that you’ll get the best deal on your insurance by getting each individual coverage from a different company – by finding the best price for each type of coverage. And depending on your business, you might. However, many carriers have a discount if you get multiple types of insurance from them. So, you might actually get a better deal on your truck insurance if you get all of your coverages from the same company. But again, it depends on your business, so you need to shop around.

9. Speeding tickets and accidents can make your truck insurance rates go up.

Insurance companies will probably see your business as being more of a risk if you have speeding tickets and accidents, so your rates will most likely be higher than if you had no tickets or accidents. This is part of the reason why it’s so important to hire safe drivers who have lots of experience driving trucks.

10. Shopping around can help you save money on your rates.

It’s always a good idea to shop around to compare rates for your truck insurance. Though you might just want to get insurance and be done with it, you may want to do some research and do some shopping. Just like with any large purchase, it’s important to take the time to compare products and pricing (in this case coverages and premiums) to make sure that you’re getting a fair rate for your truck insurance.

So, there you have it – ten things to know about truck insurance. If you want to do some insurance shopping, we would be happy to help you with that. Our team of agents can get multiple quotes for your truck insurance. All you have to do to get quotes is fill out our online form or give us a call today. We’re committed to helping truck businesses like yours save money on their insurance.