How to obtain a good rate in your trucking insurance policy?

August 29, 2022 Commercial Truck Insurance

Most of the time, freight companies receive formal quotes for their trucking insurance policies and do not understand why the price is low or high. Insurance companies use various criteria when evaluating the business profile. Here we will explain them one by one.

Driver experience is related to the years the driver has been driving under license class A or B, which corresponds to trucks. The time of experience driving under another type of license, such as class C, is not considered. That means if the driver has seven years of experience driving with license class C and five years with license class A or B, the insurance company evaluates the business profile considering the five years the driver has been driving a truck.

Years in the trucking business. On one side, all the trucking companies with a long history in the transportation industry know in detail all the dynamics. Still, there are new businesses, also known as new ventures, which somehow suppose a higher risk for the insurance companies due to a lack of experience performing in the industry.

Type of operation. The sort of loads the driver usually transports are evaluated. In other words, it is assessed if the truck is flatbed, reefer, dry van, hot shot, etc. It also considers all the goods and commodities that can increase the insurance cost due to the difficulty of transporting them. Some are ice cream, seafood, steel sheets, lumber, etc. These loads can increase the risk due to their weight and size. Also, it should consider that various are easily perishable, if not transported under the right conditions, as refrigerated products.

Operating ratio is an important feature to consider. There is a significant difference between a trucking company that works 50 or 100 miles radius to a company that works within between 300 and 400 miles. There are also unlimited operating ratios, usually going from 500 miles making the insurance most expensive since it covers nationwide.

DOT record. Eventually, the FMCSA carries out inspections on the road, and the infractions or harmful practices are recorded under the truck driver’s name. The insurance companies assess the results of the road inspections to determine if the business profile commits or not to the requirements needed to obtain the insurance.

Financial record is related to the client’s punctuality and fulfillment with the payments of previous services. Thus, it recommends being careful with financial behaviors to increase the possibilities when applying to obtaing trucking insurance.

Keep in mind all the recommendations and apply them in your company to have a successful process to obtain your insurance. At Preventty – USA Specialty Insurance, we are willing to advise in all you need for your trucking company.

Contact us (713) 332 – 1286, help@preventty.com, WhatsApp 832 500 7668.