7 Tips for Choosing the Right Commercial Truck Insurance

Choosing the right commercial truck insurance can make or break your business. If you must claim, you should feel confident that your truck insurer will hold up their end of the deal. That means vetting your potential commercial truck insurance company as well as you would a new business partner.

Even if you have the best drivers globally, there’s no controlling what other road users may do. Business owners may hope that their employees act as expected, but they should always plan for the unexpected. In the trucking business, that preparation starts with a partnership with the right insurer.

Insurance for Commercial Trucks

Before signing up for any commercial insurance for trucks, consider the following factors.
Your Budget
There will always be some type of truck commercial insurance at every budget point. The less you have to spend, the more discerning you need to be with your policy. Ensure that your savings in costs are not due to costly exclusions in cover.

For example, you might pay less for a policy with a deductible of 10% of the repair cost. It sounds like a good deal until you consider the cost of writing off a semi-truck.

If you need to reduce your premiums, do so using clever tricks:

• Hire professional drivers with commercial licenses and spotless driving records.
• Increase deductibles to reasonable levels.
• Secure your vehicles when off-road.
• Consider paying your premiums annually.

Your Truck/Fleet
The type of truck you own plays a significant role in choosing the correct commercial truck insurance. Do you classify it as light-, medium- or heavy-duty? With each classification comes specific responsibilities in terms of the insurance.
The Coverage
It’s essential to understand what your policy covers overall. Does it include a liability clause if someone gets hurt while the vehicle is in operation? Will the insurer foot the medical bill? If not, what other exclusions are there, and how could these exclusions impact your business?

Also, check for the following as they may prove necessary:

• Cargo insurance: This protects the merchandise that you are hauling. Don’t assume your client’s insurer will cover this; rather, speak to them about increasing their coverage.
• Medical coverage: This covers medical expenses for your drivers or their passengers if they have an accident.
• Uninsured motorist coverage: Everyone who drives should have insurance, but many do not. This coverage protects you when you encounter an uninsured driver.

Reputation of the Insurer
Insurers can and do make many promises when securing your business. That’s the easy part. Whether or not they can fulfill those promises depends to a large extent on their financial strength rating.

A financially stable company can pay out claims against it. One who is in trouble financially will either pay late or not at all. Evaluate every company you’re considering in terms of its financial strength and reputation.

Do they have a record of paying claims quickly? Is their customer service good? Has there been any talk of financial issues? Look for a strong company that will be there for you when you need them.
Factors that Will Impact Your Rates
Several factors influence your insurability. These include:

• Your cargo: Do you carry a load that some may consider hazardous? For example, it’s more expensive to insure a truck carrying cars or gas than a truck carrying pillows.
• Your business experience: Successfully running your business for three or more years makes you less of a risk to the insurer.
• Your location and destination: Some cities have higher accident rates than others and, consequently, higher insurance rates. The insurance company will also factor in the distance between each stop to work out the accident potential.
• Driving records: The insurance company will analyze the drivers in your fleet for violations. A speeding ticket could be costly due to a much higher insurance premium.
• Type of vehicle: The larger the vehicle, the greater the potential for damage should an accident occur. Therefore, insuring a semi is more expensive than insuring a pickup truck.
• Credit rating: Your business’ credit rating also plays a significant role in your insurability. The higher your rating, the better the deal you can get.

Buy Commercial Truck Insurance

Do you need assistance in choosing the right commercial truck insurance? Would you like help in wading through all the small print? Call Alchemy Insurance Agency at (484) 999-2101, and let us match you to the perfect policy.