Top 6 Factors to Consider When Choosing Trucking Insurance

Did you know a haulage company’s fleet is probably its most valuable asset? Fortunately, it is now possible to find effective and affordable tractor insurance to keep your precious vehicles covered. 

The trick is to find the right insurance for you – not only for your business but also for the safety of your fleet.

Your fleet is also your commercial capital, and you must protect it with the right insurance policy. Here’s everything you need to know about choosing trucking insurance that’s right for you. 

1. Vehicles That Have Been Through The Mud

Your fleet of trucks will work harder than your private vehicles, and if you are engaged in truck construction, maintenance, repair, or other commercial activities, your truck will soon show its age. This is even more, the case if you are running an ice road trucking business, venturing to Alaska. 

It is not difficult to find a company that offers low-cost tractor insurance, but it also means more risk and faster depreciation.

Of course, you don’t want to spend more than you take in, but the problem is more to combine what they offer with your needs.

You don’t want to be persuaded by a sales representative to do something your business doesn’t need. First of all, you need to know what type of coverage you will need and its cost.  You must be comparing insurance costs to get the best deal for you. 

2. Ready-Made Insurance 

It might be easy to pick a ready-made insurance policy from the company that sent you on. While your insurer can do its job and alert you to things that need to be covered, you can avoid the drama.

Read the small print and work out a reasonable price for your policy, but don’t be fooled: when it comes to cheap tractor insurance, some insurance companies use advanced math to figure out your chances of getting into trouble. Have you ever wondered why insurance offers can be so different?

You show your insurance company that the biggest factor in a commercial vehicle is its history of use.

This shows not only how often your truck has been on the road to be delivered but also how many accidents you have had and how many breakdowns you have had.

A higher number at this point could mean a more expensive policy, but a lower one could cause your insurance more problems.

Therefore, insurance companies take a lot of risk in their advertising materials, but each company has different risk tolerances. Companies like Assured Standard take unique risks, so almost anyone can find a policy that suits their business.

3. Discounts

Look out for possible deductions, price-to-price costs, deductibles, and co-costs.

Also, think about this. Would you swap a brand new car for a 1990s truck, and even your insurance wouldn’t want to pay for it?

This means you need to consider the type of model and age of your truck, but don’t worry; some of the cheaper trucking insurance policies also cover newer models.

It’s just a matter of choosing what you need, and you’d be surprised how many entrepreneurs forget to take this into account when buying trucking insurance.

It would help if you also kept an eye on the cost of buying a new truck, as this is usually the same as a lower insurance premium. The type of vehicle is an important factor in deciding the cost of your insurance, but it should be taken into account.

It is important to know all the details in advance to know everything you need to get your business on the road.

Otherwise, you may feel that the fees are reasonable enough to get the latest version, but perhaps it is better to opt for an older, reliable model. In this case, a lot of background research can help when considering options for insurance.

4. Numbers Mean Everything 

An asset loses value over time, and depreciation occurs when the average distance is greater, as in a truck with more than 10,000 miles.

For this reason, commercial companies must have this data, but it also means that you must find an insurance company that understands the nature of your work.

An insurer that doesn’t understand your case can charge you inflated fees if your odometer shows a high number.

However, different companies will have different needs, and here we are talking about the coverage of the goods you will ship. 

Also, remember that your insurance should cover extreme scenarios you might not have thought of. These can include the bankruptcy of the trucking company. You want your drivers to be well looked after in this case. 

5. Types of Goods

Suppose you are delivering frozen goods or other perishable goods: what happens to your goods when the roads are closed, or your truck collapses in the middle of the road? You need to be insured for specific requirements of your business. 

Cheap tractor insurance can specialize in certain types of cargo, which means discounts for companies that deliver goods to you, as well as discounts on your insurance.

This is important because insurance companies have different specializations, so pay attention to the type of insurance company you are talking about. Suppose you find a company that seems perfectly tailored to your needs: low-cost tractor insurance is flexible, payment terms are reasonable and affordable.

Before you close the deal, ask yourself: Is this basically the perfect deal for you? How well known is the company, and how well known is it in the forwarding industry in general?

6. Insurer’s Experience 

You would also like to know what experience the company has had with trucks, and if you are in a semi-trailer, what kind of insurance cover does it offer?

Finding decent motor insurance would work wonders for your cover, but it’s not always possible. Check with your potential insurance provider before you sign up, especially if they are new to the business.

You never know what you’re going to get, and you can be turned down for a different type of insurance or even a completely different type of insurance.

Ask about your company’s claim history and ask about the claim history, the number of claims against them, and the amount of money they are claiming.

Choosing Trucking Insurance That is Right For You

Get to know your insurance, develop an eye for detail, and it’s only a matter of time before you figure out what kind of insurance works for you.

Low-cost tractor insurance is available for any business with a budget, but this will help you to find out if you understand everything important about the contract.

If you’re interested in learning more about choosing trucking insurance, be sure to check out the rest of our site. 

Tyler Mathews

Tyler Mathews