How to smoothly transition to a new commercial auto insurance company

Each year, commercial trucks travel nearly 400 billion miles combined. That’s a lot of miles we’re putting on our trucks and our drivers. Proper commercial auto insurance helps protect your business while you’re working hard to get things from here to there. And getting the best rates and coverage is important. That’s why when the time is right you might choose to switch carriers and get new truck insurance. But there are some things to consider to ensure you stay protected and have a smooth transition.

Let’s take a look!

How to get new commercial auto insurance.

1. Evaluate your current business insurance needs.

Are you considering changing your truck insurance? Don’t get a quote based on your needs from five years ago. Review your existing policy. Compare your coverages to your current needs. If the old policy isn’t adequate for your current truck insurance needs, understand that your new policy may cost more.

Evaluating this allows you to compare two or more companies’ prices and coverages on an even playing field.

2. Avoid coverage gaps in commercial auto insurance.

You trust your drivers. You’ve hired and trained well. But a momentary lapse in judgment by one of your drivers won’t only delay that shipment. A truck accident or claim can have long-lasting effects on your business, especially if you have a gap in your coverage or you’ve let your coverage lapse.

If there’s a gap or lapse in coverage, it puts your whole business at risk with:

  • Potential legal ramifications
  • Inability to afford a quality rental
  • A vehicle you can’t afford to repair or replace
  • More delayed shipments and canceled contracts
  • Decreased revenues
  • Increased expenses

Don’t let your business come to a screeching halt over an unfortunately-timed accident. Even a week or a day is too long to be without coverage.

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3. Establish a specific cancellation date.

Contact your existing insurance company. Establish a specific date to end coverage. Line this up with the date that your new policy takes effect.

4. Get it in writing.

A handshake still means something to many of us. And getting someone’s word over the phone should be reliable.

But even if you fully trust the company that holds your existing policy, ask them to send you something in writing. These days, that could just be an email with the date that the policy will end.

Keep this for your records so that in the event of a claim, you have”proof” of your coverage arrangement.

5. Establish new coverage.

Depending on coverage cycles at your former and new insurance company, it may not be possible to start and end at exactly the same time. Work with your new carrier to establish the closest start date before the other policy ends.

It may mean you’ll pay a short span of double coverage. But this is always better than allowing a gap in commercial trucking insurance.

6. Choose the right date to make the transition.

Ending a policy early could incur a small early-termination fee from your existing carrier. But timing the end before a new cycle begins will help avoid this extra cost.

When you are preparing to change insurers, review your existing agreement. Determine when the cycle ends and what, if any, penalties you may owe. Start planning a switch before the cycle is near its end so that you can work with both carriers to find the perfect date to switch.

Not getting what you need with your current commercial auto insurance? We can help. We shop. You save money on truck insurance. Contact us to get free truck insurance quotes.

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