Blog

Affordable commercial truck insurance is not a myth. Here are 10 ways to lower your insurance cost.

Regardless of how good your driving record is, trucking insurance premiums tend to increase about once per year. While many reasons for premium increases are beyond your control, there are still steps you can take to reduce them.

What Do You Need To Qualify For Affordable Commercial Truck Insurance?

1. Police your driving record — The cost of your insurance is directly tied to your driving record. For example, speeding tickets and accidents will increase your rates. Therefore, avoid tickets, as they can be difficult to remove. In fact, it’s best to slow down and drive safely to avoid receiving them in the first place.

2. Protect your credit — You may not realize this, but many insurance companies use credit scores to determine your rates. Generally, a lower credit score means higher premiums. However, by paying bills on time, you can improve your credit and, as a result, potentially lower your rates.

3. Lease onto a large carrier or seek association rates — While you may prefer the independence of working solo, leasing with a large carrier can help reduce premiums. Large carriers often pass savings on to their drivers. Alternatively, joining a trucking association with group rates might also be beneficial. So, weigh the membership cost against the savings you might receive on your premiums.

4. Stay Out of the Ditch — It goes without saying, but claims directly affect your premiums. To avoid this, take steps to reduce accidents. For example, reckless driving, speeding, and tailgating all increase risks. Therefore, it’s important to stay focused, avoid distractions, and respect other drivers.

5. Be careful who you put behind the wheel — The experience and record of your hired co-driver can impact your premiums. Experienced drivers tend to lower insurance costs, so it’s wise to hire skilled professionals. Ultimately, hiring experienced drivers will help keep your premiums lower in the long run.

6. Follow the rules — As an owner/operator, you’re likely familiar with D.O.T. inspections and compliance checks. Keep in mind that insurers use safety data when determining your premiums. Therefore, following the rules reduces the risk of fines and can lead to lower premiums.

7. Have a written safety policy — Having a written safety policy shows that you’re serious about risk reduction. Many insurers reward those who demonstrate a commitment to safety with lower premiums. Consequently, creating and following a safety policy can help save money on insurance.

These strategies will help keep your premiums in check. Additionally, there are other ways to reduce your insurance costs. Some of these steps may only save a few dollars, but others can lead to much greater savings. When combined, these measures can make a significant difference in your budget.

8. Reduce premium frequency — Paying premiums quarterly, semi-annually, or annually can reduce rates. So, call your insurer and ask if they offer a discount for paying premiums less frequently.

9. Increase insurance deductibles — Increasing your deductible can lower your premiums. By sharing some of the risk with the insurer, you can reduce the amount you pay monthly.

10. Competitively bid your insurance — Each year, take the time to compare quotes from different insurers. If you find a lower rate elsewhere, ask your current provider to match it. Not all companies will, but many will try to keep your business.

Individually, these measures may not save you a large amount, but when combined, they can lead to substantial savings. Ultimately, it’s better to keep more money in your pocket than to pay excessive premiums to the insurance company that aren’t affordable.