How Truck Insurance Premiums Are Determined

There are a range of variables that are computed to establish the costs of a truck insurance policy. These variables are utilized to figure out the probability of an accident or financial danger, associated with giving a drivers’ vehicle insurance policy. A motorist can affect a decrease in rate for a lot of these elements, such as history of accidents, while other factors, such as age, are not in the insured’s control.

Truck Driving Experience
Experienced truck drivers pose less of a risk factor and will help lower their truck insurance rate. Truck driving experience with different equipment and weather conditions are inherent in the number of years that a trucker has been driving similar types of rigs.

Employment History
The number of years that a trucker has worked for different companies is taken into consideration as an experience factor. There is less chance of an accident if the driver is more familiar with specific routes and equipment.

Age of Operator
Statistics tell us that truck drivers that are very old and very young are more prone to accident. For this reason, these high risk age groups will have truck insurance premiums that are higher. The preferred age of drivers are between 30 and 65.

Years Operating in Name
Similar to newly employed drivers, a newly operating trucking company is more likely to have the added burdens of business growing pains. As the management operations, safety programs, drivers, adherence to regulations, matures, the frequency of loss is more likely to decrease.

Accident History
A driver who have had accidents in the past are prone to having accidents in the future. For this reason, the less violations and accidents a truck driver has, the less their truck insurance premium will be.

Previous Insurance Coverage
Truck insurance providers may ask if you have had insurance coverage previously. If you have previously been cancelled for non-payment of premium or for underwriting reasons, the potential insurer will want to know. The previous insurance carrier can inform the new insurer of your loss history.

Driving Area
The different routes a driver has can have an effect on their truck insurance premiums. This is because of the average road conditions and infrastructure, weather during the different seasons, population density, and so on.

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

DOT Safety Record
This is record of an owner operator or company DOT safety rating, Safestat and Inspection, Selection (ISS-2) scores, violations, etc. and is routinely used to assist in determination of the truck insurance rate.

Truck Cargo
The type of cargo a trucker carries will also affect their truck insurance rate. Cargo Insurance is based almost entirely on: cargo value, potential for theft, delivery time sensitivity, etc.

Equipment Operated
The age, conditiona nd value of equipment operated are a determinant in truck insurance premiums. However, the age of the rig is often irrelevant as the truck’s condition is dependent on upkeep, as well as recently installed equipment.

Deductible
The deductible is the amount of damage or loss that the insured party is responsible for when there’s an insurance claim. The greater the deductible the less the truck insurance premium will be.

Cover Me Insurance Agency (CMIA) is a full service truck insurance agency and is dedicated to providing the highest quality and most efficient truck insurance service with a personal touch. Our agents have 20+ years experience working with small fleet and owner operators.

To get the best commercial insurance rate for truck, give us a call today at 1-888-849-7273 or fill out our online truck insurance quote form.

Posted in truck insurance.