Trucking insurance can be a huge financial set back for trucking companies. The truth of the matter is that trucks can be dangerous machines. Out on the road, trucks can pose a risk to people and to the person driving the truck. Because of this risk, truck insurance companies put a huge premium on their rates. Not only that, but these rates can drastically change when the new year comes around. For a trucking company on a bootstrap, or startup budget, this could force you to lay off workers and to sell off trucks. Yet, there is a better way to save money than sacrificing your business. Here are five tips for reducing trucking insurance premiums.
1. Make sure that you hire qualified and experienced truck drivers. When it comes down to it, the more qualified and experienced your truck drivers are, the less expensive your insurance will be. Basically, insurance companies evaluate a certain policy by analyzing risk. Young and inexperienced truck drivers are more at risk and thus are more of a liability. So, make sure to keep this in mind when you are going through the hiring process.
2. Make sure that all of your drivers have clean driving records. Even though you hire experienced and qualified drivers, you are still at risk of hiring individuals with multiple points on their commercial trucking license. Insurance companies will charge an arm and a leg to insure truck drivers with a hazy driving history. So, make sure that you get a copy of a potential employee’s driving record before you make the final decision to hire. At the end of the day, the hiring process may be more difficult and time consuming, but it will certainly be worth it when your monthly premiums are significantly lower.
3. Ask for a discount based on the age of your business. When it comes down to it, you could be paying high insurance premiums for no reason. An insurance company won’t really go out of the way to tell a customer that they could be getting a better deal on their insurance, so it is up to you to speak up. If you have been in business for multiple years, you have most likely moved out of the startup liability phase and onto the responsible trucking business phase, which should warrant lower insurance rates.
4.Keep your finger on the pulse of the trucking industry. Just keeping your eye out on the trucking industry could make you privy to new insurance companies and insurance plans that are much more affordable than the one you currently have. For instance, you could sign up for an account on GoToTrucks.Com, which could give you all the information you need to know about the trucking industry.
5.Implement safety programs. Insurance companies will lower your rates if you take pertinent measures to lower your risk. This is why safety programs are so important. When it comes down to it, the safer your drivers are, the less of a liability your company is, so an insurance company will feel more comfortable lowering the premiums. At the end of the day, the lower your liability, the more money you can save.