March 21, 2023
To run your trucking business efficiently, it’s important to keep your operating costs as low as possible. But as insurance premiums continue to rise, you may be wondering how you can get the best rate while ensuring that you’re properly covered.
SmartHop is here to answer that question. First, we’ll explore why insurance premiums are rising in the first place. Then, we’ll highlight four things your trucking business can do right now to reduce your insurance premiums and save on expenses.
Commercial auto insurance premiums increase every year to keep up with the cost of inflation. However, while you may be used to steadily increasing prices, there are some additional factors at play this year that are causing premiums to surge:
Trucking expenses can add up in a hurry, which makes it all the more important to find ways to minimize wasted dollars and maximize your take-home earnings. This also makes it easier to save more money so you’re prepared if the unexpected happens, such as a costly breakdown.
There are a few ways you can go about finding the best commercial insurance coverage for your trucking business.
Commercial auto and cargo insurance is a competitive market. Make sure that you do your due diligence and shop around for the most competitive rate. Not all insurers are created equally, and finding the best insurance for your business means understanding what kind of coverage you require. Ultimately, you should partner with an insurer who checks all your coverage boxes while still getting you the most value for your dollar.
Truck drivers with poor credit history pay $165 more per month for coverage than drivers with good credit. So, if your credit score is low, you’ll likely end up paying more in insurance premiums. It is important to not only make sure that your credit score is in good standing but also be sure to look at the credit score of the drivers you plan to hire.
Physical damage insurance helps cover the costs of repairing your trucks in the event of an accident. If you can afford to carry a higher deductible on your trucks, it can help to offset a high premium. If you’re confident in your fleet’s driving skills and have had few accidents, you might feel comfortable carrying a lower deductible. To avoid paying a higher deductible, look to hire experienced, safe drivers who won’t put themselves (or your vehicles) in harm’s way.
Trucking technology has come a long way in recent years, with telematics programs being one of the newer innovations. Implementing a telematics system for your trucking business is easy, and can make you eligible for major insurance discounts.
Telematics systems not only provide actionable, proactive insight regarding service issues with your vehicles, but they can also track driving behavior to ensure the best routes are being taken and drivers are operating responsibly. On top of that, if you’re worried about what’s going on under the hood of your trucks, a telematics system can provide you with real-time alerts to help you identify and address vehicle maintenance issues before they cause real problems.
See how SmartHop can help you maximize your profit potential with every trip to build a healthier trucking business.