Commercial Truck Insurance Cost: What You Should Know
As a fleet owner, it's essential that you insure all of your commercial trucks. Unfortunately, many business owners lack the education and understanding of commercial truck insurance so they don't recognize its importance. You may not even really understand why your commercial insurance costs what it does. Here's a look at some of the factors that affect your premium costs.
How Many Trucks Do You Own?
The number of trucks that your company owns is an important factor in the cost of your commercial truck insurance. Your premiums will increase with each additional truck that you add to the policy, so keep that in mind when you're evaluating the reasonability of any quote. The more trucks you have in your fleet, the greater your risk of a loss statistically, and each vehicle will have its own additional premiums.
How Safe Are Your Drivers?
Did you know that your commercial fleet insurance will be rated based on the driving histories of those people that you hire to drive the trucks? That's one of the reasons why it's important for you to establish comprehensive policies for hiring and only hire drivers with a clean driving record both personally and professionally. This is critical for your company insurance premiums.
How Old Are Your Trucks?
The age of your trucks can affect the cost of your commercial truck insurance in a couple of different ways. Older trucks are more likely to suffer mechanical failures that could lead to a liability risk on the road, so you may have higher premiums on older trucks. Newer trucks, on the other hand, may include more safety features but could be more costly to replace. Your commercial insurance agent can help you understand how the age of your fleet affects your premiums.
What Kind Of Cargo Do You Haul?
If your commercial truck insurance includes cargo coverage, or you're hauling any kind of cargo that could be potentially hazardous, your truck policy premiums may be affected. You'll have to talk with your commercial insurance agent about how this affects your policy and what types of cargo coverage you have available to you.
These are just a few of the many factors that can affect the cost of your commercial truck insurance. If you want more details about what contributes to your policy premiums, ask your agent. He or she can help you understand all of the costs and your coverage benefits.