10 factors that affect your trucking insurance

You may be able to influence your insurance costs more than you think

Every decision a business owner makes has an impact on their business. And each decision moves that business forward or backward. Which means each decision has an element of importance associated with it. We get that. We understand that. So we want you to know how your insurance policy rates are built.

 

Most insurance companies have different equations on building those rates associated with trucking companies. However, there are some generalizations that can be made regarding their rating process that impact you as the business owner. Our trucking insurance calculator can provide you with a general understanding of how your rates will compare to the marketplace. (The calculator is for information purposes only and does not guarantee in any way what your insurance premiums will be.)

 

The top 10 factors that influence your insurance are:

Garaging Location​​

Where you are located lays the groundwork for your insurance. It is the starting point of how much insurance you are going to pay. People in heavily congested areas will have a high base rate that those in more rural locations. 

Years in Business

How long you’ve been in business matters. Sometimes this can be influenced by experience, but an operation that has 3 years of existence is the magic number for starting to influence your rates positively.

Cargo

What kind of product do you haul? Each commodity has different worth. Whether you haul Paper Products, Hazardous Materials, or auto parts, those products will influence how much your insurance will cost.

Driver Quality

This factor has a major influence on your rates. Drivers with more experience, minimal driving violations, no accidents will improve your rates. However, you higher inexperienced drivers, have had accidents, has violations, you will see the opposite occur. (Click here for the Sample MVR Evaluation Guide)

Maintenance and Out of Service
Maintaining your vehicles improves the vehicles response time in potential accidents, reduces downtime and helps prevent DOT violations. Trucking operations that have improved and responsive truck maintenance programs will improve their trucking insurance rates.

Formal Safety Programs 

Do you hold safety meetings with your drivers? Do you require pre and post trip inspections? Do you  provide ongoing training?

 

Claims History

You probably already knew this, but at fault accidents will increase your rates. 

Radius of Operations

How far do you travel on average? This has an impact on your insurance premiums. Rates go up the further you drive away from your garaging location. 

 

Financials

Are you making money? Good rule of thumb - if your current ratio (Current Assets divided by Current Liabilities) is greater than 1.00, then you are more likely to be able to pay your bills, handle unforeseen expenses, stay on top of maintenance. Insurance companies will look at financial well-being of your business, including credit history. 

Your Insurance Agent 

Do they understand your industry? Or your business itself? They are representing you to all these insurance companies; do you know how well you are being represented?


We believe that an informed buyer makes the best customer. We like to give you as much information as possible because we want your business to succeed. And business owners empowered with information will have a greater ability to succeed. And that is our goal for your business.

At Agency801, we understand these key factors so that your business thrives in the insurance marketplace. And if you aren’t quite thriving, we work carefully with you and your business so that over time, you can. Contact us immediately, so that you can continue to take advantage of the insurance premiums afforded to those top trucking businesses. And call us so that we can help you take advantage of those insurance rates in the future.