Learn 7 Exclusive Tips To Reduce Cargo Insurance Price

  • Single Cargo Shipment Policy;

Single Cargo Shipment Policy is mostly used from owner-operators and from small business companies. This policy will cover your shipment from the pickup point-through the entire process of transportation-up to the delivery point. This cargo insurance will offer you coverage only for one specific shipment.

What Is The Regular Price Of Cargo Insurance Cost

As you already know and as you have read in the introduction of this article cargo insurance is a “must” if you want to have a backup plan in case of damage and I bet that none wants to have damaged loads. Thereupon when choosing cargo insurance the most important key point is to choose the insurance company which provides the insurance Policy that can meet your needs.

Henceforth, knowing your cargo is crucial when looking for cargo insurance policy that is so because you might find yourself overpaying for it or getting the wrong policy that actually cannot meet your needs.

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Later on when in the process of choosing cargo insurance policies you will notice that the regular price of the policies varies a lot dependently from the insurance company. There are cargo insurance policies that include provisions for the loads and that is the reason of the price difference.

As an illustration I have made the following table- in this table you can see the average basic coverage rates for domestic shipments that take place in USA daily.(These prices are being calculated in %)

CategoryTransportation of Cargo on LandTransportation of Cargo by Ocean

Machinery- New/Used

Around $0.55

Around $0.66

Fragile Items

Around $2.94

Around $1.60

Car Transportation

Around $0.80

Around $1.20

Hazardous Materials

Around $0.65

Around $1.00

Frozen Food

Around $1.30

Around $1.90

Non Perishable Food

Around $0.55

Around $0.66

Moreover the cargo insurance cost will depend from the coverage, this coverage mostly includes:

  • Covers losses caused by theft;
  • Covers hijacked cargo;
  • Covers theft committed from the truck driver;
  • Covers losses that have happened during the process of pickup and delivery.

For example the cost for the general cargo insurance might vary from $60.000 up to $100.000- it all depends from the type of cargo insurance policy that you have chosen as well as from the insurance company. In the case of the determination of cargo insurance policies there are a lot of factors that play role in the determination of the final price of the insurance, overall what determines mostly the price is the type of commodity that you want to transport.

1. Reduce Cargo Insurance By Avoiding Claims

Learn 7 Exclusive Tips To Reduce Cargo Insurance Price
Source: ww.turktransport.com

 

Reducing Cargo Insurance by the means of avoiding claims is one of the most effective ways in decreasing the insurance price. Thereupon freight insurance claim is the legal demand of the shippers and the users if there are any load damages. Freight claims or cargo claims take place if some of the loads have been damaged, therefore most of the claims that took place in USA in the past year have been caused due to:

  • Transit Issues- 62% of claims that were filled were due to theft in transit;
  • 54% of the claims have happened due to theft from contractor’s premises;
  • 47% of the claims were because of building fires;

Moreover there are few elements that the customer has to fulfill in order for him to be able to fill claim. First of all it should be identified that the loads have been damaged and an investigation should take place, so that the damage can be stated. Only after the damage has been stated only then the payment must and should be made.

Learn 7 Exclusive Tips To Reduce Cargo Insurance Price
Source: www.linkedin.com

 

In the meantime- if you want to reduce the cargo insurance price consider doing it by avoiding claims, and you can do that in many ways. In order for you to avoid transit issues you should:

  • Stop only on approved and safe truck stops;
  • Not to leave the truck unguarded/unattended;
  • To increase the safety by using tracking devices;
  • Never send the trucks in convoy;

Also in order for you to prevent theft and at the same time to avoid claims you should have in mind to:

  • When hiring new truck drivers- you should check their background and their pre-employment references;
  • To avoid the usage of Internet clearing sites;
  • To check the direct contact details;
  • To check if there are any connections with the Industry Trade Bodies;

“An ounce of prevention is worth a pound of cure”- Have this as motivation while looking for means how to reduce cargo insurance by avoiding claims.

2. Train Drivers To Get No Tickets

Truck drivers are the core of each trucking company, therefore in order for you to have a successful trucking company it is crucial that you hire the best truck drivers. But how would you know that the truck drivers that apply for the job opening in your company would make the perfect fit? The answer wont come easy, that is so because nowadays almost all drivers that enter in the trucking industry have obtained Class A CDL drivers license which is a “must” as well have gone through several trainings.

Learn 7 Exclusive Tips To Reduce Cargo Insurance Price
Source: www.myimprov.com

Therefore after you choose an experience truck driver it is essential that you provide him with continuous trainings that will add them up skills. So if you want to reduce the cargo insurance price I would recommend you to train drivers in order not to get tickets. Truck drivers must acquire skills and appropriate endorsements in order to meet the requirements that the trucking industry is asking for.

Moreover, when it comes to truck drivers’ tickets- they are considered to be secret trucking company killer. Still whatever the reason might be each truck driver might get a ticket every now and then, but keep in mind that by reducing the number of tickets you will reduce the cargo insurance price, which will bring more profit for the company as well as for the drivers.

Thereupon, train your truck drivers in the way that they follow the rules and regulations that are given by the Federal Motor Carrier Safety Administration FMCSA . If we remain realistic we can see that these truck drivers’ tickets are more than just the fine that the truck driver/ the company has to pay, getting tickets might cost the truck drivers to loose their job, as well as it might affect even to losing some customers as well as contractors.

So each truck driver should be careful with the tickets for two reasons, firstly not to loose its livelihood and secondly not to increase the costs of the trucking company that they are working for.

To enumerate, it is crystal clear that by training the truck drivers well and by reducing the truck drivers’ tickets you will reduce the cargo insurance price, and by being successful you will attract more and more customers.

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