Trucker Insurance Costs: What's the Deal?
We all understand how crucial it is to protect your assets, but whether you have a single truck or a full fleet, insuring trucks is significantly more expensive than insuring a work car or any of your belongings.
It frequently baffles us. The exorbitant cost of transportation insurance baffles us. There are several causes for this, most of which are outside your control.
Here we examine these factors in further depth and explain why trucker insurance is so costly.
Insurance Cost for Truckers: What's the Deal?
The trucking industry is currently experiencing higher than average commercial insurance premiums. The industry is no stranger to high premiums, as trucking is considered a high-risk profession. Between the risks of accidents, injuries, and roadside breakdowns truckers face a lot of liability.
However, a string of high-payout accident settlements in the past year has made several carriers wary of underwriting trucking policies, according to a recent article in The Wall Street Journal.
The reporter, Jennifer Smith, noted that some of the largest carriers have stopped covering most for-hire truck fleets altogether.
“Insurers still cover trucks operated directly by retailers and manufacturers, brokers say. They had been two of the biggest underwriters for the business. Other insurers hiked premiums anywhere from 10% to 30%”
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Follow the latest trends in the trucking industry to stay ahead of the curb.
WHAT YOU'L LEARN...
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- Stephen Ritzler Podcast on Business Ninjas
- Stephen Ritzler on self-driving trucks in CCJ Digital
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Takeaway from WSJ
Smith highlighted that most trucking companies require drivers to carry at least $1 million in coverage, per accident; however, many companies are trying to add more coverage and increase their limits to protect themselves against the rise in large payout settlements.
Everything That Affects the Cost of Truck Insurance
Risk Limitation is Key to Reduce Trucking Insurance
Many insurance carriers are looking to limit their own exposure and, as a result, truckers could pay nearly double for policies that have half the coverage limit compared to previous years’ policies.
So, what can trucking companies do to stay afloat in such a tough insurance market? Maybe you also can get into it and develop a car insurance app? It all comes down to your safety and accident track record.
Mark Brockinton, the CEO for Aon’s transportation and logistics practice said to The Wall Street Journal that motor carriers are trying to mitigate their risk in a variety of ways including:
- Using collision-avoidance technology
- Utilizing speed-limiters
- Intensifying the drug screening process for drivers
- Avoiding traffic lanes that are prone to accidents
In addition, trucking companies should adopt regular safety training courses for all their drivers and avoid driving in inclement weather.