Insurance is one of the biggest expenses of driving a truck but it is one area where you don’t want to skimp. If you don’t have enough coverage and are involved in an accident you could be paying for the rest of your life. There are more accidents now than ever before due to the condition of our infrastructure and the many distractions of drivers in “4 wheelers”—texting and talking on their cell phones, inattention, other distractions, and lack of skills.
While it’s important to have sufficient coverage for any situation, you want to get the best price possible. Remember when you shop around for rates that a lot will depend on your driving record, the size of your truck, the goods you haul and how old your truck is. Insurance rates for independent rig owners are around $1800 and up. However, if you lease your truck to a trucking company you may get lower rates by taking advantage of their fleet rates.
There are all types of insurance coverage for semis and your needs might be different from anyone else. There is fire, theft, collision, CDC, and liability in all amounts. Do you need to insure just yourself and your truck or are there other drivers? What about fuel bonds? Some save money by not insuring their cargo but this can be a very foolish decision if the client you’re hauling for also doesn’t carry insurance. The price of your insurance also depends on the weight your truck can carry. Weights are classed A, B, or C, with A being the one that can carry the most weight.
Before you start getting insurance quotes you should get a copy of your credit report from all three agencies and examine it carefully for errors. If you find any mistakes that are harming your credit, resolve them before you shop for insurance because your credit score is a factor in determining your rates. According to insurance industry statistics, the higher your score is the less risky it is to insure you.
Next, figure out what size deductible you can afford, because that can significantly affect your rates. The higher the deductible, the lower your payment will be. Again, it’s all about decreasing the risk to the insurer. If you are just starting out in your business you may not be able to afford a high deductible; look at your business projections and your assets before committing yourself to a large lump sum that you would have to pay should you be in an accident. Paying a higher premium each month can be preferable to having your investments or savings account wiped out by a single incident.
After you get several quotes from different insurance companies, wait until you research them before accepting an offer. Make sure that the company you’re considering is financially sound; it does no good to have insurance if the company is unable to pay the claim. Do they settle claims in a timely manner and can you reach an agent, not just a phone bank, at any time of the day or night? Check with the Better Business Bureau and look up customer comments before you choose an insurance company. You’ll be glad you did if and when it comes time to file a claim.
As you get insurance quotes, consider increasing your coverage for underinsured and uninsured drivers, even if it costs a little bit more each month. With more and more people letting their insurance lapse, you’re twice as likely to have an accident with one of them as you were five years ago.
Once you’ve made a decision on which insurer to go with, you can rest easy knowing that you’ve protected your business, your drivers, and your family’s financial future.
{ 8 comments… read them below or add one }
Gone are the days when people see vehicle insurance as just another expense item in the budget. More and more people these days are becoming more aware of the importance of insurance. A sound insurance coverage can save you from huge financial losses in case you need to spend for repairs of parts or replacement of the entire vehicle in case a road mishap happens in the future.
The US Department of Transportation and leading manufactures are working to increase vehicle safety and would like to get truck drivers involved in evaluating a new technology. With vehicle-to-vehicle communication each car or truck anonymously transmits its direction and speed informing surrounding vehicles and helping prevent an accident.
We are currently recruiting drivers with a Class A CDL to participate in our clinics, similar to a ride-and-drive, and give their opinions on the new technology. These clinics will be held at the former Alameda Naval Air Station August 22 and 23. Eligible drivers will spend approximately 2 hours on site between driving and discussing their experience. Participants will be paid $200 for their time and given gas cards for travel.
Andrew’s article on July 4, is exactly correct. My family has been in the trucking business for more than 30 years, driven for many different companies, many different types of freight. Not only is having the correct coverage important, having deductibles that are in your attainable range are extremely important as well. What good is saving money if you can’t afford the deductible? What good is “cheap” insurance, if you can’t count on it being there when you need it?
Here in MN we at least have the MN gaurantee fund. You pay a small tax each time you renew and it goes to that fund. If your company were to become insolvant & you have a claim, the fund is there to help you cover it. However, it may not cover everything. The number one thing you can do, is to find an agent that is local. Find someone you can reach 24/7 if needed, someone willing to give you their personal cell phone, or home address even. Find someone who sits next to you at church or kid events. They do not want to “do you wrong” and then have to see you each week. Doing business with a local agent instead of an 800 # is the best advantage you can have. They will help with questions, help save you money, help your company grow, guide you so you don’t make frivolous claims that can cost you in the long run, and be there to advocate for you during a claim. I am a local agent in the western Twin Cities. I WILL give you my personal cell number. I provide 24/7 service, and care about what happens to the small independant trucker. The large trucking corporations have money to spare, the small doesnt. I have been the small guy, I know first hand. I am a Farmers Agent, have been in the insurance business for the last 8 years. Call me, or email me and we will get together & see what can be done for your bottom line. Because in the end, thats why you’re out here…to provide for your family, not get some 800 corporate guy richer on your back.
Office 952-229-5134
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I think that everyone must be required to secure an insurance policy for practical reasons. Allotting funds for this cause is a wise thing to do. Thanks for this reminder.
I’m glad you mentioned the value of having sufficient coverage for any situation because some would just opt to purchase standard policies that hardly compensate for anything. Acts of nature must also be covered, there are insurance companies offering zero participation policies too. Thanks for the valuable share.
I totally agree with you. You’ve definitely had my point as well. It’s like you’ve read my mind. I was even planning to write quite similar post like this to share with the public especially to those who are also interested with this matter. Great post! Now, I’m left with only subscribing to your post and reading all of your writings. Thank you for this very informative and helpful post.
As a trucker another reason why insurance is an absolute must is because there are now entire law firms dedicated to suing truckers and trucking companies any time there is an accident. As a trucker no matter what has happened in the actual accident it is easy to try to make you look like the bad guy in a court of law. After all aren’t you a professional driver? Why did you get in a wreck then? Forgetting the fact that the guy who caused the wreck was texting!