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How Commercial Truck Insurance Premiums Are Calculated
Posted by Ray Baker in Auto Insurance
There are many factors that contribute to the way your commercial truck insurance premium are decided.
All insurers will look at these contributing factors in a slightly different way. There is a general consensus however that the main risk factors that determines your truck insurance premium is your age, the amount of experience you have driving trucks, plus your previous employment history.
There will be many other factors as well, factors associated with the truck to be insured, but ultimately commercial truck insurance premiums will be determined after the driver and the fleet has been reviewed.
As far as the age of the driver goes, this is based on statistics in which they have shown that drivers under the age of 35 and over the age of 65 are more likely to be involved in an accident. While this factor may be out of the businesses control to some extent, that does not mean that a company cannot focus on this age group in regards to their drivers.
One way to reduce the threat of higher commercial truck insurance premiums is to make sure you employ drivers who have a lot of driving experience. At the same time you need to consider the drivers past employment history to make sure they haven’t been involved in a ton of accidents in a previous job.
Your insurer will almost certainly ask about your previous commercial truck insurance coverage history. If you have had long-term insurance in place, you will undoubtedly see your premiums reduce. If on the other hand you have there’s no history of truck insurance for your company, you will probably end up paying almost double the cost.
Where you operate your fleet will also have a bearing on the premiums you pay. If your city or surrounding area is prone to crime or is a high accident area you will pay more. The cargo you carry will also affect your costs; it is obviously less risky to transport lumber than it is to transport chemicals.
When deciding commercial truck insurance premiums, your insurance company will be interested in your vehicles age and its maintenance history. They will also look at the company’s DOT record and they will consider the amount of deductible you are willing to pay.
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