Each year almost 500,000 trucking accidents happen just in the U.S. Its is your ultimate duty as a fleet business owner to get truck insurance for your fleet of trucks. State and federal law also made it mandatory for every truck to have a minimum insurance policy.
But there are several kinds of truck insurance policies, and their cost and availability are also varying. It gets hard to decide which policy best suits the business. Even if an ideal policy is selected, the prices are quite high.
And for this very reason understanding the policies of different truck insurance companies is essential. This will help you choose a better option at an affordable price, discounts, and many more benefits. You can learn all about truck insurance, the cost of insurance for semi trucks, and how to lessen the price of the policy.
Understanding Truck Insurance
Semi truck insurance covers truck companies for bodily injuries and damages caused by the accident. The main feature of this insurance is general liability, and then different policies and specific risk coverages add to it.
There are several kinds of truck insurance that come at different prices. But according to experts, the general liability plan is the most feasible. This is because general liability will cover all the general risks and offer protection from many legal attacks or lawsuits against your business.
Normally truck insurance policies provide the following services, medical bills for bodily injuries caused by an accident (during or after), property damaged by the truck plus the cost of replacement, cost of damages at any delivery location caused by a carrier or truck, Slander, legal claims, and false advertising.
Semi truck insurance will not cover the protection of non-truck vehicles, for instance, cars. Also, it is not designed for individual truck drivers because their insurance is covered by their employer or business. Misplaced cargo or materials will not be compensated by this insurance policy. Loss of income after the accident is also not provided in these policies.
In order to assess and choose the insurance for semi trucks at the right price, you can also hire a legal manager or legal advising team. Their expertise and knowledge will protect your company from many legal battles. And they will also be able to select the policy which has an affordable cost of insurance for semi trucks.
Benefits of Truck Insurance
- The policy provides total risk coverage for trucks.
- It will assist in minimizing financial plus product losses.
- It ensures the continuity of fleet business.
- It provides a strong business image to the trucking businesses.
- Commercial truck insurance will protect your business and its integrity.
Lowering the Cost of Insurance for Semi Truck
There are some practical ways by which you can lower the cost of insurance for semi trucks.
Annual payments: With the high cost of insurance for semi-truck, yearly payments are not so easy. Annual payment is a large amount, and not everyone can manage to pay it at once. But in case your business can afford to do so, then you will see a considerable reduction in your monthly premiums. The reduction can be 10 to 20% overall. So your business will save a good amount of money in the long run.
Choose lower limits or higher deductibles: The deductibles for semi truck insurance and limitations depend largely on premiums. Low premiums mean bigger responsibility for the freight business. But in some cases, large deductibles can cost your business more money, so you need to assess all of your options carefully.
Safe driving: Most insurance policy companies would like to work with drivers who have a history of being careful which means they won’t cost them any money. As motivation, insurance companies propose monthly premiums at low prices to the freight companies that have a track record for safely driving and minimum accidents.
Cost of Insurance for Semi Truck
The average cost of insurance for semi trucks ranges between $3,000 to $5,000 per year for moderate-size fleet companies that get associated with large carrier businesses. For large carrier businesses that have their own authority, the standard cost of insurance for semi-truck is $9,000 to $12,000 per truck.
Similarly, for new authorities, semi-truck insurance policies have surged in recent years, and now their normal cost is between $12000 to $17000. You need to take into account the following factors in order to understand what will be the cost of insurance for a semi-truck business.
- What materials are transported
- How far does the vehicle normally drive
- Cost of the semi-truck
- CDL experience of the driver and their age
- Company’s credit history
- Payment plan for the policy
All of the factors mentioned above will change the cost of insurance for semi trucks. Whether it gets higher or lower depends on each company’s policy and how they count every factor. It benefits a lot to understand insurance companies because you may find big cost differences with changes in policy or company. The cost is bearable if it gives useful benefits in return. If not, then it is just a waste of money that’s deducted every month from your fleet business’ assets.
Putting It All Together
The most important aspect of selecting a rightful policy for your business shouldn’t always be its cost. If the policy provides general liability plus some specific risk coverage, then it is worth it. In order to choose the right truck insurance company and policy, try to comprehend legal terms and conditions so you can make a proper decision. You can also adopt some easy and practical ways to lower the cost of insurance for semi trucks and other vehicles. Safe driving, higher deductibles, and yearly payments are some of the ways to do that. But be careful in choosing large deductibles because, in some cases, they are not feasible for the business.
If you are unable to assess the pros and cons of your policy and cannot decide if it is worth the cost, hiring a legal advising team will be a good decision for your business in the long run.