No matter what upfront costs insurers show on their websites, the actual commercial truck insurance cost is different or hidden. It happens because there’s certain variables that influence commercial truck interest rates. However, the good news is that truckers can take certain measures to reduce their rates.
Fastest Ways to Lower Truck Insurance Rates
Using One Insurer for Entire Fleet
You might have seen many construction and transportation businesses using various companies to insure their vehicles. Typically, this method results in higher rates and insurance costs. Instead, choosing just one company or insurer to cover the vehicles in your is a better option.
It’s because most insurers offer not only lower interest rates but also discounts when you add more trucks to your insurance plan. It helps them keep track of your payment schedules, which plays an important role in keeping interest rates low.
Paying Monthly for Yearly Insurance Plans
Most insurers offer their customers the option to choose between paying monthly installments with high insurance rates and a big yearly payment plan with reduced interest rates. Entrepreneurs prefer choosing a monthly installment plan to avoid any disruption in cash flow.
However, you can use a loan to make larger annual installments with a business term loan offering monthly repayment options. This way, you will be able to pay the loan with lower monthly cost payments.
Maintaining a Clean Driving Record
The driving records of your employees has a significant impact on your insurance costs. That is to say, even simple things like a speeding ticket and running a red light can increase your company’s insurance rates dramatically.
This makes it crucial to encourage safe driving practices among your employees. You can do that by introducing reward systems for drivers who successfully go a certain period without getting any tickets. Similarly, introduce penalties for drivers involved in irresponsible driving.
Higher Equipment Value = Lower Interest Rate
Note that modern vehicles have more advanced features. It translates into a lower insurance rate. Driving an older vehicle with run-down equipment means you’re at higher risk of accidents. Hence, your insurer may charge higher insurance rates.
If you find adding new trucks to your fleet an expensive investment, financing heavy equipment can help you lower the cost-payment plan. It doesn’t impact your cash flow and saves you from paying for commercial vehicles upfront.
Paying On Time
Sometimes, it’s harder to pay your insurer due to reasons like seasonal business and fluctuating demands, and other factors. Your cash flow is not always in your favor. Regardless of the reason, it is essential to pay your insurance company as failing to make timely payments can raise your interest rates. So make sure that you work with a backup plan to make timely scheduled payments.
All in all, the given tips are great to keep insurance rates low and make the most of your plan.