As a trucking company owner operating fleet of trucks, you know you have to get insurance annually. Now, how you choose the right insurance for your coverage can definitely be a hard task if you don’t know what is required to choose the right insurance and this can yield some bad and unpleasant results if the insurance selected does not fit your requirements.
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But rest assured! After going through this article you will know the proper procedure to select the right insurance company as well as the policy too.
How to Choose the Right Insurance Company?
Some companies have specialty in trucking insurance, which matters a lot. Someone who specializes in trucking is bound to know some of the technicalities that can be learned overtime with experience only. Now, let us not confuse trucking insurance with a motor insurance company.
There is a basic difference that your truck earns for you and that is by transferring cargo inter and intra state. So you need protection against damage by accidents, damage to cargo and damage to the environment done by the accident.
Now, there are some perks only the experienced insurance company, which has expertise in trucking, can provide you. The first of all is that they know how to think out of the box. They are adaptable and know that you have to sometimes load something out of the said cargo or you have to go out of your coverage area to have a financially good backhaul. This said, a non-expert won’t be so flexible because he only knows what’s in the book and not what happens in the real life.
Pay Attention to Details
Therefore, make sure to choose a company that provide flexible policies since insurance is for unseen possibilities where more the flexibility, better the reliability of business.
If you are a for-hire trucking company, you will have to deal in different states. Each State, sometimes has its own motor-carrier regulatory agencies and therefore, if your insurance provider does not have enough knowledge about USDOT MCS-90 endorsement, you will end up bad in a different state. This can range from tickets against your vehicle to getting yourself detained in some jail and letting all the money that you were supposed to earn go in vain.
A non-expert might deal with you on the light truck basis. He might not know the exact weight limitations in different states. Imagine yourself not reaching the destination just because your weight doesn’t meet the limits of a state, whereas the client dealt with you on the basis of your insurance.
Whereas, if it had been an experienced and a flexible insurer, you would not have faced the problems mentioned above. A flexible insurer sure knows how to deal with the little problems that arise and these little problems can be cause of big disappointment.
Create a Shortlist and Compare at least 3 Insurance Offers
There might be complicated problems too. One example is of an accident. An expert knows that the truck is your life. You are out of business if you don’t have your truck anymore. Now an expert and specialized company care about their customers.
They will know that they have to take your truck quickly to the repair shop and make the necessary arrangements to get you out of trouble from law and different agencies e.g. environmental and law agencies. They will cover for your medical expenditures so that you can get in the position to earn as soon as possible.
Now that you have a few trucking companies shortlisted, it’s time for main factors. Is the company financially strong enough to spend on the high cost claims? Is the company old enough to survive in the strong competition? Is the company providing flexible coverage for my routes? And with flexible coverage, is it cost effective as well?
Or is the company providing me good advice for better coverage?And how much they value their customers? Are they providing timely service and response? If a company satisfies all these answers, then you need to give it a go. And so we come to further research on this company.
Truck Insurance Pricing Is Sometimes Really Complicated
Don’t get misled by the catchy conditions of the policy. Don’t lose your cool mindedness and don’t get carried away. Some examples are that the cost will be very low, but the coverage will be low.
You have to keep all the other factors in mind and not go straight for the cost. Also, you have to check the condition of the company as to whether it is financially strong enough because when a company is going to be closed, that’s when the most frauds occur.
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This is luckily covered by different ratings available from different platforms.The A.M. Best Company deals with ratings for financial strength of a company (ranging from A++ to F), while Standard &Poor provide ratings for claims-paying ability (on a scale of AAA to R) and solvency (BBBq to R).
Some other platforms dealing with ratings like these are Duff & Phelps, Weiss Research etc. These ratings are easily accessible and can be used to guess the future of a company and thus avoiding any chances of frauds.
These ratings and checks are required. Why, you ask? Well, what if the company isn’t strong enough to deal with multiple claims at a same time and might go bankrupt and still owing a lot of money to people? The insurer might go out of business and some other insurer might buy the company and return the claims, but this will take a lot of time which a few of you can’t afford.
Read Really Carefully What Is Covered
The perks provided by the insurer are sometimes too good and you don’t know what you are compromising for because it’s written in difficult terms for you to understand easily. You are being blinded by the low cost or being lured in by the insurer without you knowing what the real deal is.
