Truck Insurance: How Commercial Truck Insurance Premiums Are Determined

September 14, 2021 0 Comments

Truck insurance premiums are calculated based on a variety of factors. These factors are used to determine the financial risk, or probability of an accident, involved in providing a driver truck insurance. Many factors taken into account are things that the driver can influence to lower rates, such as accident history, while others are factors over which the insured has no control, such as age.

Driver’s age Statistically, younger drivers and very old drivers are more prone to accidents. For this reason, drivers in higher risk age groups will have higher premiums. Preferred drivers are typically between the ages of 30 and 65.

Driving experience The more truck driving experience an operator has, the lower their risk assessment. Experience with various equipment and weather conditions is inherent in the number of years an operator has been driving similar types of trucks.

Job history The number of years that an operator has worked for different companies will be taken into account as an experience factor. The more familiar a particular driver is with specific routes and equipment, the less chance there is of an accident.

Accident history A driver who has been responsible for accidents in the past is prone to accidents in the future. For this reason, the fewer accidents and violations a driver has, the lower the insurance premium for his truck.

Previous coverage Truck insurance providers may ask if you previously had insurance coverage. If it has been previously canceled for non-payment of the premium or for underwriting reasons, the potential provider will want to know. If you have had truck insurance, the old carrier can inform the new insurer of your loss history.

Years operating on behalf As with newly hired drivers, a business that is newly operating on your behalf is more likely to have the added burdens of management development. As a company gains more experience in managing its operations, including safety programs, drivers, regulatory compliance, loss frequency, and more. it is also likely to decline.

Driving area The routes a driver takes can have an effect on premiums. This is determined by the average road conditions and infrastructure, the weather during different seasons, etc.

Load The type of cargo a driver carries will also affect his or her truck’s insurance premium. Cargo insurance is based almost entirely on: value of cargo, time sensitivity to delivery, potential for theft, etc.

Equipment operated The value, age, and condition of the equipment operated are determining factors in truck insurance premiums. However, the age of a truck is often irrelevant as the condition of the truck depends on maintenance as well as newly installed equipment.

Deductible The deductible is the amount of damage or loss that the insured party is responsible for. Generally, the higher the deductible, the lower the insurance premium.

DOT Safety Record A record of a business or owner-operator DOT safety rating, violations, Safestat ratings, and Inspection and Selection (ISS-2), etc. it is commonly used to help determine the trucking insurance rate.

Security features and programs Safety features for an insured truck, such as warning stickers, are beneficial for risk assessment. Business safety programs and driver safety trainings are also helpful.

As a full service truck insurance agency, Cover Me Insurance Agency (CMIA) is dedicated to providing the most efficient truck insurance service with a personal touch. All of our agents have 5-20 years of experience working with owner operators and small fleets.

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