Obtaining insurance for your commercial truck fleet is an essential part of business. It protects you from the potential catastrophic loss you could face due to an accident, theft, or various other situations.
For most fleet owners, the idea is to find insurance that will fit the budget without sacrificing coverage.
This article explores 5 key factors that will impact your truck fleet insurance rates so that you can keep your costs down.
1. The Age of Your Fleet
Insurance companies take the age of your fleet, as well as its condition and value, into consideration when giving you a quote for coverage.
Keeping a fleet with trucks that are about 10 years old or less is ideal, but that is not always possible. Therefore, actively maintaining what you have is important. Provide upkeep regularly as a preventative measure, promptly address any issues that arise, and add upgrades. Accurate, detailed records can prove your care.
2. Your Drivers
Hiring good drivers is crucial if you want to keep business flowing as smoothly as possible. After all, who you have behind the wheel helps insurance companies determine your level of risk.
When you hire and retain competent, experienced, and compliant drivers, you will not only feel confident each time they head out on the road, but you can also count on lower insurance rates for your fleet.
Drivers with a history of tickets, accidents, or other issues of not adhering to safety standards can cost you dearly regarding your fleet insurance. Always have a thorough vetting process before hiring, including:
- at least a couple of years of commercial truck driving experience
- a clean driving record
- a current license
- a clean drug test and history
- a good recommendation from a previous employer
3. The Health of Your Finances
Believe it or not, the health of your finances matters when you are looking for truck fleet insurance. Credit scores may be for a small company with a small fleet. Larger companies will often be required to prove a positive financial situation by supplying financial reports.
Being responsible with your credit and finances shows that your company is more likely to pay premiums. High credit scores and solid financials almost always coincide with lower insurance rates.
4. Coverage Limits and Deductibles
When you have higher coverage limits and low deductibles, you can expect your fleet insurance rates to be elevated. But do you need all that coverage? You could be paying for something you don’t need.
Working closely with insurance experts can help you get all the protection you need without anything extra by determining your risks. What’s more, you can easily obtain quotes from a variety of insurance carriers so that you can determine which one is best for your fleet.
5. Location and Operation
Your location and where you operate may be out of your control, but it can play a significant role in your rates. Just as with regular automobile insurance, areas that are densely populated or are prone to natural disasters tend to have higher premiums. There is an increased opportunity for accidents and damage to the trucks.
The distance you travel and what you haul can also impact your insurance rates, too.
While you cannot always change your location, you can ensure you have the best coverage policy.
Get Value-Added Fleet Insurance at Daniel & Henry
No one knows commercial truck insurance like the experts at The Daniel & Henry Company. Our professionals work hard to ensure you get the best coverage for your fleet while keeping your costs down.
Let us evaluate your needs, assess your risk, and provide you with a quote.
