If you are in the business of operating trucking or hauling services using large trucks and motor carries, then it is important that you insure these vehicles with a commercial truck insurance coverage. This type of insurance is applicable only to commercial vehicles like vans, light duty pick-up trucks, and SUVs. Insuring these vehicles will make a big dent to your financials but in the end they will prove much less cheaper and worthwhile. Here are some points to remember about commercial truck insurance.
How Premiums Are Computed
The insurance rates for this product is based on traffic violations and the driver’s accident history primarily. In an accident history, whether or not he was at fault or not at fault will not be so important. The point is that he got into an accident and that was it. The same is true with traffic violations: the more traffic violations, the higher the insurance premium
Drivers of commercial hauling business should have the required minimum number of years of experience in being a commercial truck driver as well as the drivers’ age. These are other factors in determining the insurance premium. The longer the driver’s experience, the fewer the accidents, the lesser the premiums. With this, a Commercial Driver’s License (CDL), however, is required. In commercial driving, the driver should be within the 30-65 age range.
Other factors include the value of the vehicle, the condition it is running in, the year it was manufacture and other similar factors are considered in determining the premium amount. With this, the certified technician of the insurance company will evaluate the commercial vehicle himself. Included in this consideration are the number of miles the vehicle has run, the risk of theft, and the particular cargo it transports.
An increase in premium price will also depend on the gap when the insurances were taken. If the company’s insurance policy expired and was not renewed right away, the premium price for the next insurance policy will be greater. The exception however is when the cancellation was not result of an accident claim that was excessive.
If your commercial vehicles have safety features like airbags, anti-theft devices, or anti-lock brakes, the insurance company can give you discounts. Also, there is such a thing as Experienced Business Discount for businesses that have been operating for more than three years and it can also be offered to the driver who has been employed with the company for a long time. This is because insurance companies consider the driver’s employment history to have an important connection to the company depending on the driver for his reliability and efficiency.
Do remember, however, that different states will have different insurance rules. Seek for the advise of the insurance agent to be properly informed of what laws will apply and what products are available in the state you are in.
By Nathan Dean