Insurance. The one thing you pay for which you hope to never use. With ever-increasing operating costs, it’s tempting to slash coverage to bare minimum to save on your premium, but where does that leave you in an unfortunate event? Here’s a list of alternative options to save on your premiums without loss of coverage.
Hire Well
We say this a bit tongue in cheek. Of course you try to hire well, however there is a real temptation to simply find warm bodies when we get busy. Avoid that practice. Factors such as driver record, age and experience, and overall employment history are among the greatest factors for determining the premium you pay.
Plan Smarter Routes
Most commercial transportation insurance companies take into account factors such as weather, population density, and distance traveled per load when determining premiums. If you can avoid major metropolitan areas as a pass-through, do so and you will likely see additional savings.
Practice Proactive Safety Planning
Ensure driver certifications and DOT safety ratings remain up-to-date. Letting them lapse can cost you now and in the future. Be sure to outfit your rigs with appropriate safety signage, documentation, and safety equipment, passive and active will help reduce your premiums moving forward.
Planned Retirement of Old Equipment
Simply put—use newer trucks. Older rigs have fewer safety features that can aid in avoiding a collision. Another benefit is increased fuel economy and lower maintenance costs, which may more than offset the cost of acquisition—especially with well-structured commercial truck financing.
Raise Your Deductible
You’ve heard the saying, “you can’t have your cake and eat it, too”; same goes for premiums and deductible. Raising your deductible from $1,000 to $2,000 or more can reduce your premium.
Choose A Commercial Equipment Insurance Agent With Partners
From multiple insurers to choose from to relationships with lenders and cash flow specialists, select an insurance agent who knows the industry versus a generalist, and is well-connected with trusted partners to help you better manage cash flow.