11 Steps To Reduce Truck Insurance Cost

11 Exclusive Steps To Reduce Truck Insurance Cost

There is few things that you can do to be safer (if not 100% sure that you are OK) and most important part is:

  • Run periodic checks and inspections of your trucks
  • If you can afford it pay for maintenance plans that include unlimited repairs and maintenance in more than 500 locations across the country

7. Maintain Your Equipment

The same goes like the previous point but here situation can become a bit more complicated. And how is that? It can get complicated because there is some situations where you are not driving your equipment – trailers for example. It is a bad thing that you can get involved into getting a ticket and the trailer is not even yours and you are not guilty for his bad maintenance.

However you are not guilty but you are responsible and you need to be well aware that situation can happen easily. Not just easily it happens a lot and there is no real way how to avoid it. Choosing partners you are working with and carefully choosing equipment can save you a lot of headache but I know what you mean now – no way I can do this in real company life.

Some companies are offering some extra coverage in case something like this happens but it is far away from ideal protection. They say they will cover it but try telling that to a cop while your truck is inspected beside the road in the middle of nowhere.

8. Be In Business For a Long Time

Insurance companies and brokers like businesses that are old. Actually older the better. If you look from their perspective this makes sense. Actually it makes sense 100%. Being older than 3 years is really important to these guys.

And that number is increasing all the time. Few years ago it was OK if you are in business for 2 years but now they are asking to be in business for 3 years in order to qualify for massive discounts. It is not easy especially if you are not setting you strategy towards long term especially at the very beginning. But they are counting on that.

Most of Class 8 trucks bankrupt within firs 24 months, some of them within 36 months but if you are in business for more that 36 months you have a good chance to be there for the next 10 years and insurance companies like that.

Unfortunately there has been a weird trend noticed that trucking company owners are opening multiple companies from the day 1 and keep one of them as a plan B in case they bankrupt with the first one. However insurance companies are realizing this and they will probably increase the limit to 4 years over the next period of time.

9. Have driver with great MVR Records

Besides the requirement to find and attract drivers with more driving experience it is also important to find the good ones. Some people like to say quality ahead of quantity and that saying is the best one describing this situation.

Insurance companies like to go to this kind of details when providing you with the quote for your trucking company and be aware of this information. This is probably the hardest part of running the company – finding good drivers especially since those are attracted by top 20 trucking companies offering them some amazing terms that they can offer since they have a direct contract with client and are avoiding brokers.

But here is what you can do actually:

  • develop system that will attract  driver and make them want to work for you
  • establish HR department or if you are small hire recruiting agency
  • establish bonus system that will reward them for good driving habits
  • set up paid vacations and see how you can turn $1000 cost into huge benefit

10. Register and establish company In more affordable  states

Some states like Indiana or Ohio for instance tend to have cheaper insurance prices if the company is established there. No 100% precise reason for this practice but insurance companies are estimating that there is less risks associated if your company is based there.

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It can make sense if you ask me but let’s not spend hours analyzing why is that like that. You can’t change it so use it if you can. If you are living close to some of those “cheaper” states and you don;t have issues establishing an office there and drive an extra hour per day – this could be a great solution for you. You could save tens of thousands of $$$$ just on insurance prices and taxes annually. Think about it.

11. Set Up Safety Program to Train Your Drivers (each 3 months)

If you become a company that has a safety program and safety training procedure established to train your drivers this can be really helpful to prove to insurance company that you are serious when it comes to safety. In most cases now days this kind of programs are established and present in bit trucking companies and small and medium trucking companies just started with this practice.

11 Steps To Reduce Truck Insurance Cost 4Source:www.esi-alphatec.com

If you think you can dedicate certain amount of money for this each quarter just go after this. Insurance companies love these kind of activities and decide to reward it will lower insurance prices. Present to them the following and make sure you will earn cheaper truck insurance:

  • Set up a safety training for your drivers every 3 months
  • Continue to monitor and analyze their improvements and create reports
  • Reward them for successful adoption of trainings

As you can see the path towards cheap truck insurance is a long journey but I’m sure you can reach it. Organizing the company according to these steps will make it way easier to run and it will reduce the headache of unexpected events. Just take your time and step by step create a safe company and in the same time – Save a lot of money!

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