Ok, that’s enough of the trucking movie quotes; let’s get down to business. It doesn’t matter if you have one truck, or a fleet of 100 trucks, you’re going to need Insurance, because:
- It’s the Law, and
- If something goes wrong, you want to cover you tail – and any possible expenses resulting from accidental damages or injuries.
As a business owner with commercial vehicles, you need an auto insurance policy with certain minimum compulsory coverages for the trucks or trailers that you use in your business, just as you would for a personal car. If you have 4 or more commercial vehicles, instead of it simply being called commercial auto insurance it is referred to as Fleet insurance, i.e.: Truck Fleet Insurance, or Delivery Truck Fleet Auto Insurance. |
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What makes your Truck Commercial?
A commercial truck is any truck used primarily to transport materials, goods, tools or equipment that relates to your occupation and includes trailers that are intended for use with said commercial trucks.
Features of Fleet Insurance:
Not all insurance companies are created Equal! When looking for an insurance provider, seek out the most reliable agencies with financial stability and a thorough understanding of the trucking industry, and not just the most affordable protection. There are a number of factors to consider besides price, a long recognized industry leader might provide the best value for your insurance dollar. There are a number of key factors to consider when choosing an insurer for your trucking needs such as:
- Claims Service
- Coverages
- Filings
- Risk Control Resources
- Competitive Pricing
- Agent Relationships
- Years Insurance Company has Insured Truckers
- Financial Stability of the Company
The PDF document below is a Truck Insurance Check List to use when choosing Commercial Insurance provider for you business. Use the list when obtaining insurance quotes and rate comparisons. Click here to download
Policy Coverages:
Whatever your business or number of vehicles, a reputable Fleet insurance provider will have a wide range products to match your individual requirements. An insurance company who works closely with the owner-operator of a large or small fleet, will provide a policy to his customers that offer coverages including:
- Ability to package truckers’ liability, physical damage, cargo and general liability coverage conveniently into one policy.
- Family emergency travel coverage for travel expenses incurred due to your injury from a claim.
- Coverage for theft or damage to personal property inside your truck.
- Towing and finance value automatically included within your physical damage coverage.
Ask your agent if the company can provide coverage for ALL your unique truck insurance needs - not just part of them.
Factors Effecting Policy Premium Calculation:
It is the nature of insurance that you pay your premium before either you or your insurance company knows if you will have a loss, or how big the loss might be. When determining the premiums for a trucking company, the insurance company will consider factors that may increase or decrease the probability that a loss will occur, and the potential size of the loss.
The following items are some key factors affecting your chance of having a loss and, therefore, the premium you will pay:
- Driver Age
- Years Driving Experience
- Years Employed
- Driving Record
- Accidents
- Years Operating in Name
- Where You Drive
- What You Haul
- Equipment Operated
- Deductibles
- DOT Safety Record
- Safety Program
When requesting a quote for your Fleet insurance, the company will request the name, date of birth, and drivers license number for each of your drivers. This information forms the insurance carrier’s picture of your overall fleet operations.
Research the insurance company:
Just as with any major purchase, you want to find out as much as you can about the insurance company before purchasing a policy. Start by checking with the various rating services and regulatory agencies to see what you can find out. Also, find out what you can about the company's claims processing policy. First and foremost, you want to work with an insurance company that is financially able to pay out claims, and you also want a company that processes claims in a timely manner.
Rules for Hiring Drivers:
If you have “bad” drivers, then your fleet will not be a good insurance risk. Your accident rate will be higher than average, your operating costs will be higher than average, and you will suffer higher-than-average vehicle downtime. This is costly for both the insurance company and for you and will mean higher premiums. To avoid any of these problems, careful consideration must be taken when hiring your drivers:
- Always run a Motor Vehicle Report on a new applicant.
- Require a written application asking about accidents and tickets.
- Take a test drive.
Be very particular when hiring your drivers,
And save money on your insurance premiums.
Keep on Trucken! |
