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What Influences the Cost of Commercial Truck Insurance?

If you run your own fleet or drive for a company, getting commercial insurance should be your top priority. Insurance offers you financial coverage against damage and injuries.

Remember that hauling cargo across state lines entails a lot of risks. If you were uninsured and something happened to your cargo then you would be left footing the bill. This can cost you thousands of dollars and leave your trucking business in a place where it can’t financially recover.

As I’m sure you know, trucking insurance isn’t particularly cheap. However, the cost is worth it when you consider the risks truckers face every day.

In this article, we’ll discuss the cost of commercial insurance and what factors affect it.

Factors That Affect the Cost of Commercial Insurance

The Driver’s Age and Experience

The experience and age of your truck drivers can play a vital role in determining the cost of your commercial insurance. If you have drivers below the age of 25, you may have to pay a higher rate. This is because young drivers are less experienced and more prone to car accidents.

Older drivers, on the other hand, have more experience and know how to handle driving in various weather conditions. Therefore, if you’re worried about the cost of your commercial insurance then hiring older drivers who are trained and have experience may be best.

However, if you do opt for a younger driver then there are some ways to keep your rates as low as possible. Such as, having an experienced driver accompany them on their first few trips. Also, you should have an extensive training program in place for newbies.

Insurance History

Insurance companies will do their research before agreeing to insure you. If your record indicates your policy was canceled or you have a lot of claims filed then you’ll be deemed high-risk. Note, if it’s risky to insure you then you’ll likely pay more in premiums.

Driving Record

Drivers with multiple accidents, speeding tickets, or violations on their record can affect the cost of commercial insurance. These are red flags for insurance companies.

Therefore, if you want to keep your rates low then hire drivers with clean records and fewer accidents and violations.

Years of Operation

Insurance companies tend to be more hesitant when it comes to insuring new trucking businesses. Just like with age and experience, the longer your business has been up and running the less risk you’ll likely be.

Cargo Type

The type of cargo your hauling can play a big role in your commercial insurance rates. The insurance company places higher premiums if your cargo is typically more expensive. The same goes for trucking companies that carry hazardous materials like chemicals, gas, flammable liquids, or poisonous substances.

Driving Locations

Do your trucks travel through areas with high crime, lots of people, or difficult terrain?

Routes like these may be considered high-risk due to an increased chance of an accident or possible theft.

Safety Features and Training

Insurance providers prefer newer trucks with various safety features. They also monitor whether or not you have safety programs and training in place for your drivers.

Weight of the Vehicle

You may not know this but heavier vehicles are harder to maneuver. Since they’re harder to control, there’s more risk involved. Heavier vehicles are more prone to accidents since they typically have a slower response time.

Also, heavier trucks are oftentimes the ones carrying large expensive cargo.

Summing Up

There are plenty of factors that influence the cost of commercial insurance. Thus, you need to consider them all so you can keep your rates as low as possible.



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