A hot shot truck is used to haul unique goods that are unable to fit in a standard tractor-trailer. This can include livestock, agricultural machinery, construction equipment, and cars. Typically, the freight is hauled short distances and for individual customers.
If you’re considering joining the hot shot trucking industry then you’re in the right place. In this article, we’ll discuss insurance costs and ways to save. Let’s get started.
How Much Does Hot Shot Truck Insurance Cost?
When it comes to hot shot trucking, you can’t compromise on coverage. To be protected, you need to purchase the minimum required coverage. Usually, this amount is determined by the state, as well as the shippers and brokers you work with. If you don’t have the necessary coverage in place then shippers and brokers can refuse to release the load.
When it comes to the cost of hot shot truck insurance, it’s important to understand that it can vary depending on your minimum coverage requirements. The reason for this is the value of different goods varies. If you’re hauling more costly items then the shipper will likely require you to have more coverage.
On average, the cost of hot shot truck insurance ranges from $6,000 to $19,000 a year. Nonetheless, most insurance policies fall between the $12,000 to $14,000 range.
What Factors Affect the Cost of Hot Shot Truck Insurance?
The cost of hot shot truck insurance is dependent on several factors, such as:
- Your age and experience
- Whether or not you have a CDL
- Your chosen limit and deductible
- The make and model of your truck
- What you haul and your hauling radius
- Your claims history
- The coverage you’ve chosen
- Your insurance carrier
- The value of your trailer and truck
- Your credit score
- And so on
Talk with your trucking agent to get a better understanding of how the above factors affect your rates. The more experience you have behind the wheel, the better. This includes obtaining your CDL and going through the required training process (a CDL is not required to operate a hot shot; however, it is recommended). This indicates to your insurer that you take safety very seriously at your hot shot trucking business. In turn, you may be saving quite a bit in regards to your premium.
Ways to Save
Unfortunately, if you run a hot shot trucking business there’s no way around insurance. In fact, it’s absolutely critical to have the necessary coverage in place in the event your load gets damaged or you get into an accident. The downside to truck insurance is it’s not cheap by any means. However, there are several ways you can lower your costs.
- Shop around for the best prices
- Pay your premium all at once
- Ask about discounts
- Lower your limit
- Increase your deductible
- Only get the coverage you need
- Maintain a clean driving record
- Participate in training courses
Keep in mind, if you increase your deductible or lower your limit you’ll have to pay more in the event of a claim. You should never choose an amount you aren’t willing to pay. However, if you rarely file a claim then it may be worthwhile to raise your deductible or lower your limit.
Summing Up
As you can see, comparing rates and insurance companies can help you find a policy that aligns with your needs. Most importantly, finding an agent that understands the trucking industry, as well as the day-to-day operations of a hot shot trucker is critical.
If you’re looking for a truck insurance agency that offers multiple carrier options and discounts then look no further. Our team of professionals can help by shopping around for you and bringing you 3 free quotes to compare. It’s fast and easy! Give us a call or fill out our online quote form to get started!
Source
https://www.ratchetstraps.com/everything-you-need-to-know-about-hot-shot-trucking