Due to the skyrocketing cost of insurance, almost every trucker is facing a pocket-digging experience in insuring their commercial vehicle. However, insurance is one thing that can’t be ignored at any cost as it protects their operations from n-number of risks. Not only does it safeguard your property and your passengers against potential dangers but also people on the road. Having insurance comes with many benefits. But along with several advantages, it comes with a cost that can jiggle your finances and overall profits. Not anymore! We will tell you some actionable tips to reduce the cost of commercial vehicle premium rates. Let’s learn them all and protect your trucking within your budget with our guide on How To Reduce The Cost Of Insuring Your Commercial Vehicle?
10 Workable Tips To Lower Commerical Vehicle Insurance Rate
Commercial truck insurance is an expensive deal for many business owners. The cost of commercial insurance is costlier than a personal auto policy because it operates more on the road. And if you own multiple fleets, then insuring each vehicle can dig deeper in your pockets.
As a trucker, you must have felt the pain of a continuous increase in the cost of insuring your vehicle. The worst part is you have no control over the consistent price increase. But, the good part is you can control the rate of your insurance premium.
Here is a list of some workable tips that will help you reduce the cost of commercial vehicle insurance rates very easily.
Good Driving Records
Whether you operate your commercial vehicle on your own or have hired drivers to carry out commercial activities, driving records greatly impact the rate of your policy. A driver with a bad driving records which is date stamped with accident involvement, traffic tickets, and violations is risky to insure.
When the insurer assesses driving records and understands that there is a risk to insure a particular applicant, then they quote a high price for the policy. Meanwhile, drivers with good and clean records get policies with lower rates. So, before hiring drivers make sure you gauge their past records. You can also run a training program for existing drivers to educate them on the right driving skills and precautionary measures they can take while operating on the road.
Bundle Your Policy With Other Add-ons
Another best way to reduce the cost of commercial vehicle insurance is bundling other types of policies as a part of the package. Taking add-on policies individually can cause your commercial vehicle insurance price to rocket. For instance, if you transport heavy cargo from one point to several locations then you can bundle cargo insurance with primary liability, medical payment, and other needed policies for your business.
Many insurance companies allow you to merge personal auto insurance with commercial one at a reasonable rate. Apart from saving costs, bundling insurance also helps you track the payments easily. You can skip the hassle of paying multiple times for different policies as you will only have one to manage and track.
Examine Your Coverage Need
Whenever you buy a commercial vehicle policy, it is vital to consider some coverages that help you in the long run. You might think that some add-ons are unnecessary for your business. But there are some policies that save you money despite its additional cost.
For example, some insurance companies offer renting facilities when your own vehicle is undergoing repair after an incident. Having such reliability avoids putting your operations on hold, even after getting struck after an accident. If you don’t have an additional vehicle that can be used as a replacement in need then including a rental reimbursement policy in your coverage is worth its cost.
Keep Up Your Vehicle Security
The amount of security that your vehicle has greatly impacts the price of its insurance. Security against common threats like theft and vandalism not only protects your operations but also reduces the cost of commercial vehicle insurance. For example, parking in a private facility or garage helps you minimize the risk of theft.
Another method is to add extra security devices that shield your operations. All these aspects are factored in while calculating the rate of your insurance premium. When you project yourself as a less risky candidate, the insurance provider quotes a low price for insuring your vehicle.
Some truckers keep their vehicles secured more than others. Operating secured commercial vehicles poses less danger than the ones that are prone to risks. So, consider incorporating such features on your commercial vehicle can help you reduce your premium rates.
Increase the Rate of Deductible
The deductible in your policy is the amount you agree to pay to the insurer at the time of claiming the coverage. The more the deductible, the lesser will be the insurance premium. Whereas, if you opt for a lower rate of deductible then the rate of your commercial vehicle insurance goes higher.
You can considerably lower the rate of insurance premiums if you increase the rate of deductible in your policy. However, there is a financial risk that comes after increasing the deductible. You need to be very certain about the funds that you have to pay before claiming the coverage. If are not sure, then stick to the ratio which your insurance provider recommends to you.
If you are confident that you can pay a higher deductible you can go for it as this tweaking will make your monthly payments comfortable.
Consider Annual Payments
Many insurance companies offer discounts on annual payments of insurance premiums. Opting for annual payments of your premiums can save you a lot of money in the long run. You can save 1 month of premium money by choosing an annual payment. So, practically you will pay only 11 months doing an annual payment of your insurance.
If you can’t pay your premiums in one shot, you can opt for a 0% interest credit card. You can make an annual payment of your premiums via this card and keep paying the credit on a monthly basis. Following this step, you can save 1 month of insurance premiums without jiggling your finances. To secure 0% credit cards, you need to maintain a good credit rating.
Maintain Your Credit Score
The rate of your commercial vehicle insurance also depends on the level of your credit score. If you have a good credit score, you can get a decent discount on your policy. Whereas, if the rate of your credit score is not very impressive, then it projects you as a non-timely payer so the cost of your policy will also go on the higher side.
If your credit score is not good enough, you can always make it better. How? Pay your bills and other debts on time. Paying your bills consistently in a timely manner can boost your credit score. This way you can reduce the cost of commercial vehicle insurance and save huge bucks.
Your credit score ratings highly impact your policy rate, make sure you keep it upright.
Choose Agency Over Carrier
Working with a reputable agency is much better than a carrier. They have access to a wide range of carriers. You can contact them and shop around, compare your shortlisted brands, and find a deal that falls within your budget and needs.
If you choose to work with a credible agency, you can save the time that you will spend on comparing different providers on your own.
Automated Payments
You can save money if you opt for automatic premium deductions. How? You are in the transport business which is very busy. Your entire day and even month get exhausted in hauling different types of freight from one place to another. In such circumstances, it is very normal to skip premium payments. In addition, if you forget to pay even a single month’s premium it will add on in the next month due with an interest.
Therefore, to avoid the hassle of skipping the manual payments of your insurance premiums, you better opt for EFT (electronic fund transfer). Once your payments automatically get transferred, your credit score also gets boosted.
Quere About No Claim Bonus
No claim bonus is a type of discount that is available for insured individuals who don’t file their claims. Whether you have heard of it or not, you should always ask about no claims bonuses from your insurance provider.
Many insurance companies offer no claims bonuses to their customers. You should always ask about it to increase your future savings.
How To Reduce The Cost Of Insuring Your Commercial Vehicle | The Bottomline
Running a trucking business comes with risks that can affect your profits directly.
Insurance is one thing that protects your finances when your vehicle causes or gets impacted followed by an accident. But covering your vehicle comes with a significant expense. With the help of the above-mentioned tips, you can make your truck policy affordable.
All these tips will help you reduce the cost of commercial vehicle insurance easily. You can get a maximum discount and save a lot of money on your deal!