Truckers need to consider four different types of insurance. They definitely need liability with the Federal Motor Safety Carrier Administration requiring $750,000, but many companies require 1 million dollars before they will load the truck. Many truckers also cover bobtail insurance that covers an unloaded truck regardless if the truck is pulling a trailer. Many also carry motor truck cargo insurance covers lost or stolen cargo, and it may cover the cleanup if a load is spilled. Finally, many truckers carry physical damage insurance covering the truck in the event of a physical catastrophe such as a fire, tornado or flood. With so many different insurance policies, insuring your big rig can get very expensive. Therefore, truckers should consider these tips to help you get the best policy at the lowest cost.
Get Competitive Bids
Truckers should make sure that they get bids from numerous insurance carriers. Some companies allow an agent to consider many different companies while others allow them to bid only one. Therefore, it is smart to contact numerous agents. Drivers may also want to talk to other truckers to find out who they are using.
Get a Multi-year Policy
Insurance prices continue to climb. Therefore, if the trucker can get their insurance at a set price over a multi-year period, it is usually a better buy. The most common is a set three-year policy, but five-year policies may be available.
The higher the deductible, the lower the cost of the insurance. Remember that is money that the driver must pay out of their pocket in the event of an accident. Therefore, it is usually a good idea to not raise the deductible until the money is set aside in a dedicated bank account that is used only for that purpose.
Truckers who can afford to pay for their insurance at one time may receive a sizable discount. If that is not possible, then consider paying for one year of insurance at a time. If that is still too high, then consider letting the insurance company automatically draft the money out of an account.
Big rig insurance can be very expensive with many good drivers paying over $5,000 a year for their insurance. Using these tips to cut down on insurance costs keeps operations profitable.