When you go to renew your truck insurance, chances are your premium is not going to stay exactly the same. In fact, if your agent says that the rate’s going to be the same without asking you to update the details they have about your business, you should be wary. The reason that your truck insurance renewal rate might change is that the details that affect your rates are probably different than they were last year when you were getting truck insurance. We’ll explain some of the details you’ll want to go over with your agent prior to your renewal.
Factors that could affect your truck insurance renewal.
1. The value of your vehicle based on its year.
Unfortunately, the value of your vehicle may be lower now than it was last year due to depreciation. That will play a part in your insurance renewal when the new policy is written. Insurance companies need to know the name and model – and the year – to give you an accurate idea of what your truck insurance will cost.
Pro tip: Pay your bills on time to keep your renewal rate from skyrocketing. There are a few reasons that your renewal rate might go up, and late payments are one of them.
2. Your drivers.
You’ll also need to talk to your insurance agent about your drivers at your truck insurance renewal time. If you’ve hired any new people or let any drivers go, your agent will need to update your driver list. And it’s the same deal if any drivers have left your business to pursue other work opportunities.
The reason that your driver list is so important is that your drivers have a huge effect on your insurance rates (which is why you need to be very careful when hiring new truck drivers.) If they have speeding tickets or accidents on their record, for example, they’re seen as being more of a risk to insure – and you’ll probably have higher rates because of it.
Anyways, the point is that you have to make sure your driver list is up-to-date and accurate. Your insurance company needs to know who’s getting behind the wheel of your truck.
3. Who you’re doing business with.
Your insurance company will also need to know who you’re doing business with – what contracts you have, what you’re hauling, who you’re driving for. Your contracts and the cargo you haul are also important details about your business that could affect your rates. As you can imagine, hauling office supplies is different than hauling electronics, and both of those are different than hauling food.
Pro tip: Shop around for truck insurance quotes every year at your renewal. This can help you get a lower rate for your insurance because it allows you to compare coverages and prices. Our team of truck insurance experts can help you get multiple truck insurance quotes.
4. If you’ve made any major repairs or replaced any parts of your truck.
It’s not uncommon to replace a truck’s engine when the vehicle reaches about 400,000 or 500,000 miles. The thing is the changes or improvements that you make to your truck affect its value. That engine is not cheap! Because the new engine affects the truck’s value, its’ definitely worth mentioning to your agent. They need to make sure that you’ve got enough insurance to fully cover your truck’s value.
5. The ELD mandate.
Now here’s an interesting side effect of the ELD (Electronic Logging Device) mandate:
Trucks from the year 1999 are exempt from the mandate, which required CMV drivers to install an ELD in their truck – with a few exceptions. Because 1999 is the magic year and those trucks don’t have to adhere to the ELD rule, trucks of that year are suddenly in very high demand. Following a rule of economics, more demand means that the price goes up – more people are competing for the same product.
Again, we have to talk about the value of the truck. If you have a 1999 truck, its value may have gone up significantly. And that can also affect your renewal rate. Your trusty 1999 is now way more expensive to replace.
These are just a few of the details about your business that might have changed over the last year. These details need to be updated each year at your truck insurance renewal time because they’re factors that can affect your truck insurance rates. Make sure to touch base with your agent at your renewal and go over anything that’s new or different about your business.
Looking for truck insurance quotes? We can help you get multiple quotes for your truck insurance so you can save money on your rates. Our truck insurance experts are pros at making insurance easy. Getting started with your quotes is as easy as filling out our quick online form or giving us a phone call today. We’re here to help with any of your insurance needs.