Insurance for trucks is a must because it protects investments and, in some places, it’s the law. Every truck driver must shell out money for this since it’s the law. But how much does this protection actually cost? There are a lot of variables that go into the cost of insurance for a new trucking companies, but here are five of the most significant ones.
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- Driving record
The most significant aspect in determining the cost of truck insurance for owner-operators is the policyholder’s driving record. A driver with a record of reckless behavior, as seen by multiple accidents or speeding fines, has a considerably greater risk of causing an accident that will result in a claim being paid out by an insurer. The history of accidents, traffic tickets, and other issues like DUI convictions will be investigated by the insurance company. The more violations someone has, the more expensive their insurance will be. Insurance for new trucking company application may be denied if the applicant has a lengthy record of claims and other issues.
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- Operating radius
As you increase your driving distance, the price of insurance for new trucking company will increase accordingly. When your service area is broad, you spend more time on the road and, hence, are more likely to be involved in an accident due to the unfamiliarity of the routes and the increased amount of time spent traveling. Long-distance trucking also usually involves sitting behind the wheel for longer periods of time, which can lead to fatigue and make accidents more likely.
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- The type of the truck
The higher the curb weight and horsepower of your vehicle, the higher the costs will be. A truck that is lighter in weight is easier to maneuver and is likely to inflict less damage than one that is heavier. In addition, the higher the price of the truck, the higher the cost of repairs will be, which means that your rates are likely to increase as a result.
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- The type and value of transported loads
The insurance provider will charge truck insurance for owner-operators a higher premium if you have a reputation for hauling high-value loads across extended distances. Due to the high value of certain items, it is more expensive to pay for those losses than it is for others. This has a direct effect on the rates you’ll have to pay for your premiums right away.
Conclusion
It is important to find a policy that protects your company and its employees to the fullest extent possible while still fitting into your budget. Finding competitive estimates for truck insurance for owner-operators is essential for keeping money in your wallet.