Trucking fleet insurance is a must-have for owners of commercial trucking businesses. Not only does it protect the company’s trucks, but also the people that drive them.
The insurance cost for a trucking fleet depends on several factors, including size, purpose, and classification. In addition, your policy may require certain contract additions to protect your vehicles and cargo.
Coverage
In addition to the liability insurance that all truckers must have, there are other types of commercial fleet insurance that can provide additional protection. These include cargo coverage, uninsured motorists’ policies and workers’ compensation.
Cargo insurance protects the goods that a company transports from damage or theft during transit. Some products, such as refrigerated foods, have special risks that require specialized cargo insurance.
While the requirements for cargo insurance differ from state to state, most are based on the type of cargo that is transported and the amount of vehicle weight. These requirements can help companies choose the right policy for their needs.
For example, cargo insurance is often required by federal law for businesses that transport freight across state lines. However, states may have lower requirements for cargo coverage if the trucks are hauling goods within their borders.
This insurance can be purchased by a business owner directly from the insurer or through a broker or agent. An insurance broker is an expert in the specific industry who can recommend a policy that fits the business’s needs and budget.
An agent can also give business owners an idea of the types of coverage available from various providers. They can also help customers compare policies and rates to determine which one best suits their needs.
A carrier with a long history of offering excellent customer service and industry expertise should be considered for single-truck customers and owner-operators. Sentry, for example, has been in business since 1904.
Motor carriers can also opt for a mileage-based policy if they have a consistent number of vehicles that travel a steady amount of miles. This policy makes it easier for companies to verify the mileage being driven and allows them to grow their fleet without incurring higher premiums.
Many states also require trucking companies to purchase physical damage coverage for their vehicles. This covers damage to the rig itself and any trailers that it is hauling.
In the event of a collision, this type of insurance can cover the cost of repairs or replacement of the damaged property. In addition, this coverage can also provide protection against third-party claims and medical costs if someone is injured in an accident with your truck.
Claims
Insurance is a vital part of running any business, and it’s especially important for trucking fleets. However, the costs of claims can be high, so it’s imperative to choose an insurance provider that offers competitive premiums and specific coverage details that meet your needs.
The most effective approach to controlling insurance costs is to develop a safety culture that focuses on training drivers and monitoring their activities. This will help improve driving behavior and reduce the number of accidents.
In addition, implementing a fleet-wide accident prevention program that involves training, safety meetings, and incentive programs will also help lower premiums for trucking companies. A good driver training and safety management program will also help ensure that drivers follow safety procedures and are not distracted by their phones or other devices while driving.
Another way to reduce the cost of trucking fleet insurance is to use a fleet policy that sets a monthly premium for each vehicle. This option is especially good for the smaller fleet that has a minimal amount of vehicle changes each month.
Other options include a guaranteed-cost policy that is typically used by small fleets and a receipts policy that sets a monthly premium based on the gross revenue received from each truck. The disadvantage of this type of policy is that it may increase the overall cost if the company receives more than expected in annual receipts.
Some large fleets operate a captive insurance company, which means they manage their own insurance company and reap the rewards of reduced premium costs. The downside is that the captive company will be subject to claims management and underwriting decisions that will impact their operations.
One way to avoid these issues is to work with an insurance advisor who understands the specific trucking industry and its unique needs. The trucking advisor will design a comprehensive policy that addresses all your fleet’s needs and risks.
A good trucking insurer will also work with you to develop a comprehensive trucking loss control program. This will involve analyzing your fleet’s operations, and creating a plan to reduce your insurance risk as well as protect your drivers and other employees.
Underwriting
In the trucking industry, it is important to get a quality insurance policy that will cover all your needs. This will ensure that you are protected in the event of an accident, and it will also help you avoid costs for repairs or medical bills.
There are many different types of trucking fleet insurance that can be purchased for your business. Some of these include collision, physical damage, and uninsured motorist coverage.
The type of insurance that you need will depend on the size of your business and the type of trucking that your company does. This is why it is important to find a trucking insurance broker that can help you determine what coverage will work best for your business and drivers.
Commercial trucking insurance is a specific type of commercial auto insurance that covers vehicles used in the transportation of goods and people. This type of insurance is often required by the Federal Motor Carrier Safety Administration (FMCSA) as well as other agencies.
Underwriting for trucking fleets is unique because of the risks that they face. This is why it is essential to have a carrier that specializes in trucking fleet insurance.
Fortunately, there are many good commercial trucking insurance carriers that can provide you with the necessary coverages and protect your trucking fleet from losses. You just need to know where to look for the right company.
Another aspect of the underwriting process is comparing rates. A low rate may be attractive, but it is important to check the policy language to make sure you are getting the right protection at a fair price.
This can be a challenging task, especially when comparing prices from many companies. It is important to understand that some companies will offer a cheap rate because they don’t have the expertise to write a good policy.
There are other factors that can impact your premiums, such as the amount of time the truck has been in service and the number of miles per week it travels. You should also look for a carrier that offers coverage for liability issues as well.
Policy Changes
If you are an owner-operator or operate a trucking fleet, you have to be aware of the risk that your insurance provider may cancel your policy. This can happen for several reasons, including if your business is not profitable enough, if you are driving unsafely or have too many violations on your record.
If your insurer deems your fleet to be too high of a risk, they can drop your coverage midterm with written notice. This is a good reason to be proactive and ensure your fleet has positive cash flow, a stable lease or vehicle, and a strong safety record.
Insurance rates can be a roller coaster ride for commercial trucking companies, but the rate increases aren’t all bad news. “Fleets that are leveraging technology and best-in-class safety practices are able to navigate the insurance premium lane that is most favorable,” says Keith Dunlap, transportation practice leader at Gallagher Bassett.
He adds that the rate of increases will continue to slow down over time due to increased adoption of ADAS technologies and tort reform at the state level. Still, he warns that a fleet’s safety performance will continue to be one of the key determinants of their insurance costs.
Dickinson recommends trucking companies keep up with safety regulations and train drivers on how to follow them. They also need to maintain their trucks and vehicles and regularly provide quality pre-inspection and post-inspection reports.
In addition, trucking operators should make sure they hire safe drivers with clean driving records. Hiring someone with a poor driving history is a big red flag for most insurance providers.
Adding a new driver to your fleet can increase the cost of your insurance premium. Most insurance providers will charge you double the current rate for each additional driver added.
While trucking companies can grow their fleets rapidly, they need to be cautious about how many trucks and drivers they add. They should not add more trucks and drivers at once, since this can increase your risk of having your insurance canceled.
Trucking fleet insurance can help mitigate this risk by offering guaranteed-cost policies, which allow you to pay a fixed rate for the entire year. Guaranteed-cost policies are the most expensive of all the insurance options, but they offer complete coverage and no premium increases. These policies are especially useful for small, independent trucking companies that don’t have a lot of equipment or revenue.
