As a short-haul trucking company, insurance takes up a huge chunk of your balance sheet. That’s why it’s so important to know what’s influencing the costs of short-haul truck insurance and whether you’re paying more than you have to as a result.
Here’s what you need to know.
What affects the cost of short-haul truck insurance?
1. What’s Covered
You have auto liability insurance that covers other drivers and property damage. That’s required by law. But most savvy short-haul trucking companies know it would be hard to come back from a major truck loss, cargo loss, medical bills, or a lawsuit.
They get coverage for these additional risks to avoid carrying that risk alone. How much coverage you want or need for these determines how much you pay.
As a general rule, costs go up the more risks you need to manage with insurance. But keep in mind that at a certain point that upward trend goes down. You may be able to get additional coverages for less because you’re getting more types of coverage through one company.
2. What Your Limits Are
3. What Kind of Deductible You Have
How much you’re willing to pay out of pocket before insurance kicks in impacts how much you pay for short haul insurance. These deductibles are usually per vehicle. If, for example, you have a garagekeepers policy and someone breaks into your yard and vandalizes multiple vehicles, you’d pay a deductible for each one.
And, in most cases, the per vehicle damage wouldn’t exceed a high deductible.
If two of your trucks were in major accidents a week apart, you might get hit with a second high deductible while you’re still recovering from the first one.
Having a higher deductible may allow you to afford higher coverage limits or afford more types of trucking insurance that you need. For that reason, it’s important to consider the whole picture to find the right balance between deductible and coverage.
4. How You Pay
If you’re paying monthly, then you could be paying more for your policy. You can save as much as 10% if you pay annually. That’s like getting over one month of insurance for free.
You may get a discount if you switch your short-haul truck insurance policy to 6 months from monthly.
It’s definitely something to look into.
5. Driving Records and Experience
Individual driving records, as well as your record as a company, may be taken into consideration. An insurance company might also look at the age and experience of your short-haul drivers.
Having good safety programs in place for new drivers and making sure you hire safe drivers will help you keep short haul insurance costs lower.
6. How Often You Review Your Policy
Many short haul trucking companies get a policy. Then they don’t look at it for three, five, or even ten years. All this time their business’s needs are changing. They may need more of one type of insurance and less of another. They end up paying more. Either they’re paying for short-haul truck insurance they don’t need, or they file a claim and find out they didn’t have enough coverage.
Shopping for truck insurance might not be your favorite thing. We can help. To get quotes for your truck insurance, just fill out our simple quote form or give us a call today. We do the shopping for you.