It’s not easy to juggle the income with the outgo when managing a long-haul trucking business. Save where you can to maximize profits. Even 10% can make a world of difference.
That’s why it’s important to make sure you’re not paying too much for long-haul truck insurance. Here are 5 smart strategies to lower your rates.
How to Lower Your Long-Haul Insurance Premiums
1. See About Raising Your Deductible
If you’re having trouble making payroll or keeping the lights on, you may want to consider temporarily raising your deductibles.
This isn’t a good long-term plan because if you have two or more claims close together, it’s hard to pay a high deductible. Making this a business habit will cost most long-haul trucking companies more in the long-run.
Consider these other options first.
2. Ask About Paying in Fewer Installments
Most insurance companies will set you up on an installment plan. Some may not even ask if you could handle fewer installments. If, for example, you can switch over to paying your premium for the whole year, you’ll save as much as 10%.
The challenge with this is that you probably need to save money now. But work to save up so you can switch over to 6 months or once a year installments to save money each year.
3. Reinforce Personal Responsibility with Drivers
Your drivers are your first line of defense against accidents. Encourage drivers to communicate regarding concerns about their truck. Create a checklist of things like windshield wipers, brake responsiveness, etc. that drivers document when they drive a vehicle. Then your truck maintenance team knows to check them out next time the truck is in the shop.
This both shows drivers that you care about their safety and will reduce accident rates that can raise premiums.
4. Schedule an Annual Safety Class for Drivers
The FMCSA (Federal Motor Carrier Safety Administration) found that 71% of trucking accidents happen when the driver is doing something other than driving. They may have been tinkering with the dispatch equipment, texting, reaching for a map, or eating a hamburger.
The truck doesn’t care. It can’t drive itself. Every driver knows this. But classes help reinforce the risks and their responsibility.
Accidents increase how much you pay for long-haul truck insurance. Show you value the safety of long-haul drivers by either hosting or requiring some kind of safety training each year.
5. Shop for Better Coverage
Long-haul truck insurance rates don’t stay the same. Various changes in your company, trucks, management, etc. could cause rates to go up or down.
If your long-haul coverage needs have gone up, you’ll usually get the best rates by getting multiple quotes on comparable coverage. You wouldn’t believe how many businesses choose a company and then just stick with them as the rates go up and up. Shopping around will save them money.
See if you can raise your deductible. But be careful. It could end up costing you more. Invest in safety strategies to keep accident rates low. Shop around for better coverage for less.
Don’t have time to shop around for long-haul trucking insurance? We can help. We do the shopping for you. Get started with your free quote today by filling out our online quote form or giving us a call.