Whether you are a small or large business offering trucking services, it’s essential to protect your interests with suitable commercial trucking insurance. While truck insurance may seem costly, especially for firms that own only one or two trucks, there are numerous benefits that come with investing in insurance. Options available differ according to the type of truck, the risks incurred, the driver’s experience and the type of goods. Choosing the right insurance package and or provider will depend on several factors, and understanding some of the most critical factors will help you make the right choice.
Specialization
Companies that insure trucks, motor carriers and drivers vary widely. You want to choose a company that specializes in trucking insurance. For instance, only a specialized company will be knowledgeable about motor-carrier filing requirements of various state agencies. A specialist understands that when your truck is out of service, you’re out to lose plenty; they’ll get an experienced adjuster to the scene of an accident in the middle of the night, if needed.
Experience
Find out how long the company has been in business, and how long it has specialized in trucking insurance. There’s no harm in doing some background checks to know more about any company you’re considering. Get to know the company’s financial outlook and overall ratings. The company you choose should have sufficient reserves to pay claims on time. You can take advantage of information provided by national rating companies which continually monitor the customer service performance and report on the financial strength of insurance companies.
The financial strength of an insurance carrier is a critical factor you can’t afford to ignore. If a large number of claims are submitted within a short time period and the company has insufficient reserves, the insurance carrier may be overwhelmed with more obligations than it can cover. Such a distressed insurer may be forced into receivership or eventually go out of business still owing lots of money in claims.
Coverage
Knowing how much to pay and the coverage to buy require that you ask the right questions and know what to look for. Commercial trucking insurance works like a personal car policy. It offers standard coverage such as motorist protection and liabilities, as well as collision and comprehensive cover. It also helps to know that there are special protection plans for commercial trucks. Review the terms, conditions and extent of coverage. Make sure you understand the damages and contingencies covered by the policies, and whether or not the policies can be adapted to the specific needs of your business.
Price and Cost
The cost of a policy can vary widely depending on your type of vehicle, age, and the type and range of commodities to be hauled during the life of the policy. One of the most crucial factors in cutting costs is your driving record. Minimizing losses is the best ways to keep your premiums down. However, different insurance carriers will treat driving records differently, so be sure to seek clarifications when choosing a carrier.
As with most things, if it sounds too good to be true, it probably is. When examining a policy, compare not just the prices but also the extent of coverage as well as the terms and conditions. Low prices often mean less coverage, but it’s important to understand which benefits you’re giving up to save costs.
A Few Things That Will Lower Cost
Better working and safety conditions for your truck may translate to lower premiums. If your trucks will be delivering or hauling different kinds of cargo, make sure you have the right coverage. It’s also important to check whether the company offers any discounts for security systems, secure storage for vehicles and warning stickers. Some carriers will even offer discounts for certain safety classes or certifications. There are several small things that can work towards reducing your premium eventually adding up to bigger savings.
An insurance policy is meant to buy you more than just peace of mind. When investing in insurance, you want to get superior service in return. A policy may seem affordable but it’s also important to consider the cost of managing your relationship with your carrier. Consider, for example, the time and effort you’ll spend to comply with the insurance company’s rules and regulations. Establish whether the claims process is thorough and simple, or whether it will rob you of valuable time. You also want to work with employees who are accessible, knowledgeable and helpful. Some low priced insurance policies will carry hidden costs that will only become apparent when you request documentation, file a claim or ask for assistance from a company trying to cut down on labor costs.
Determining the value of a policy and the relationship with your carrier may not be a walk in the park, but it’s essential to invest some time and effort so you can get the best value for money.
