How to Lower your Truck Insurance Premiums

Keeping insurance premiums low is an absolute must for trucking companies. Insurance can be one of the largest expenses for a trucking company or owner-operator. Here are few factors that underwriters and companies look at when evaluating your insurance.

  • 5 year loss history: Every carrier and underwriter will request your 5 year loss runs. This is one of the biggest factors in determining your premium. A clean loss history will have carriers competing for your business and a bad one will have them running for the hills. A few losses don’t mean you are completely out of luck on getting a good premium. Explain the circumstances of the loss in detail and explain steps you’ve taken to make sure it won’t happen again. A detailed explanation can get the carrier comfortable taking you on, even if you’ve had losses.
  • SAFER Score: Underwriters look closely at your score on the FMCSA’s SAFER system. If you have an above average of out of service instances, underwriters will take note. Again similar to claims be ready to have a detailed explanation of steps you’ve taken to prevent issues from arising in the future.
  • Driver MVRs: Poor driving records can also hurt your insurance premium quite a bit. Always check the MVR of any driver you hire, if they have high number of tickets it will likely increase your premium. Many underwriters will refuse to quote drivers with tickets for incidents like reckless driving or DUIs. Tickets received while not on the job count as well. Try to always obey traffic laws and keep MVRs as clean as possible, a few tickets can end up costing a few extra thousand dollars in insurance premium.
  • Driving Radius: Sticking to shorter routes and hauls can also mean lower premiums. The insurance industry considers anyone going over 500 miles to be long haul which usually means higher premiums. If you can show in your IFTAs that you primarily go less than 500 miles there are potential savings to be had.

If you can improve in these three areas you should have no problem finding competitive truck premiums.  Keller National can help you go out to trucking markets and find the best premium available. Give us a call today at 216-965-0646 or email bkraus@kellernational.com with any questions.

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