My name is Eric Bowman, and if you have questions about insurance, this is the blog you need to read. I was always confused when I had to purchase insurance. I would either end up paying for insurance I didn't need or I wouldn't buy the right policy. I finally decided that I was going to learn all I could about insurance policies so that I would understand exactly what I was buying. Now, I am completely satisfied with my insurance and the coverage is just what I need. I realized that there are others who are probably just as confused as I was, so I am writing this blog to help others get the best insurance for their needs and budget. I hope that my blog gives you the information you need to make the right choices when purchasing insurance.
Insurance tends to be a significant expense for commercial trucking operations. Bringing down commercial truck insurance costs could improve your bottom line significantly.
The following are six mistakes you need to avoid when it comes to trucking insurance so that you can minimize the overhead costs of your operation.
Paying premiums monthly rather than up front
Most companies will charge you more if you break down your policy payment per month rather than paying for your policy all at once.
If you can afford to do so, you should pay for your policy upfront. This will not only reduce premium prices, but also give you the peace of mind of knowing that your insurance bill is paid well into the future.
Not signing on to a longer policy when possible
The longer your policy term is, the better off you'll be cost-wise in a lot of cases. Some insurance providers offer a three year policy term or another longer policy term option.
When you opt for a longer policy term, you know that your premium will be fixed over a long period of time and you can more easily make precise financial projections for your operation.
Having a lot of tickets on driving records
Your driving record and the driving record of any employees you have are going to impact your insurance costs. Therefore, you should do everything you can to avoid tickets out on the roads and provide your employees with incentives for maintaining unblemished driving records.
Not insuring all company vehicles with the same company
Many commercial truck insurance providers will offer lower prices if you insure numerous vehicles with them.
Not only should you insure all your commercial vehicles with the same provider, but you should also insure your personal vehicles and even your properties with the same insurance provider if possible. This way, you can maximize any loyalty discount that's available.
Not discussing safety programs for businesses with your insurance provider
Commercial vehicle insurance providers sometimes will give clients discounts for running safety programs or participating in driver education programs. You should consult with your insurance provider to see if any discount programs like this are available.
Not forgoing comprehensive coverage on older trucks that aren't worth as much
Any vehicles your company uses that aren't worth much may not require comprehensive coverage. When a vehicle isn't worth too much, you become likely to pay more in insurance premiums than the vehicle is worth before long with comprehensive coverage.