Trucking Insurance is a must-have for any trucking company. If you’re starting in the business, it’s essential to get some coverage and learn everything you can about what type of insurance is best for you. But not everyone wants to read about different kinds of trucking insurance. That’s why we’ve created this blog post highlighting five important factors that affect your business trucking insurance policy.
Your Type of Commercial Vehicle
What type of vehicle you have can affect your trucking insurance policy. For example, if you own a flatbed truck, then you will need to get a commercial liability policy. This type of policy covers you for damage caused by other vehicles and people. On the other hand, if you own an enclosed trailer with refrigeration equipment, then it is recommended that you get a combination policy that includes both liability and cargo coverage.
The type of vehicle also affects how much insurance coverage your carrier offers. The more expensive the vehicle is to repair, the higher the repair or replacement costs after an accident. This is why many carriers charge higher premiums for larger trucks with higher repair costs than smaller cars with less expensive repairs.
Your Location and Routes
Your location and routes affect the insurance you need for your fleet. For example, if you have a large fleet that travels across many states, you may need to purchase a nationwide policy from Milepost Insurance. If it’s just a few trucks that travel within one state, you might be able to get away with a state policy.
The coverage you require will depend on your business type and the risks of operating within your industry. Many companies find they can save money by buying some insurance policies in bulk or through an agent instead of individually.
The Value of Goods You Transport
It is important to understand that there are different types of insurance coverage for transporting goods. The type of insurance coverage depends on how much value is placed on each shipment. If you have a valuable shipment that could be considered stolen or lost, this would be considered a high-risk shipment and require additional coverage.
However, if the shipment has no real value and will not be missed if lost, this may not require additional coverage. Sometimes, businesses will buy insurance with a higher deductible than they need to cover their profit margin should something occur during transit or while in storage at their destination facility.
The Age of Your Drivers and Trucking Company
The age of your drivers and trucking company is a factor that affects your trucking insurance policy. The best way to keep your drivers safe is by having a mature fleet that has been around for a while. If you’re starting with a new fleet, consider hiring experienced drivers who already have experience with large trucks.
Several insurance policies exist for drivers who run businesses and those who drive for themselves. There are also different types of coverage available depending on how mature your fleet is and what type of business it is (for example, if your company provides transportation services for other companies).
There are two main types of insurance coverage available for commercial fleets: liability and collision coverage. Liability coverage protects you against legal claims by accident victims, while collision coverage protects against damage to other vehicles or property.
The Number of Vehicles in Your Fleet
The Number of Vehicles in Your Fleet affects your trucking insurance policy in several ways. First, it can affect the overall cost of your policy, including the deductible and other charges. Second, it determines how much coverage you have with your trucking insurance policy.
The size of your fleet also affects the number of drivers you need to hire, which can increase the cost of your trucking insurance policy.
Finally, it can affect the types of vehicles that you need to insure yourself against. For example, if all your vehicles are light trucks or passenger cars, you will probably only need one policy for them. But if you own a mixture of trucks and passenger cars, your company may need several policies just for those two types of vehicles.
There are quite a few factors that affect the rates that a business’ trucking insurance policy will carry. Companies need to consider these factors when shopping for the best policy available. Looking at potential risk factors can help businesses find a policy limiting their premiums and providing them with better coverage overall.