Factors Affecting Truck Insurance Cost

Posted by McGuire Trucking Service on February 23rd, 2019

Trucking insurance costs depend upon number of factors. The major factors which affect the cost includes, type of truck, driving record, previous insurance history, cost of vehicle, type of load its hauling, state of operation etc. The type of business you are in also affect the insurance premium of truck. If you handling hazardous material, your insurance premium will obviously be high as compared to one who is handling commodities. For uncertainties on road, insuring your truck is the best substitute.

Type of truck and its usability:- There are different type of trucks  that are being used to transport shipment from its origin to the destination for e.g. Boxed type trucks, semitrailers, tow trucks, flatbed service truck, commercial auto trailers, low deck flatbeds. The bigger is the size of the truck the bigger the load it would carry and it is more prone to accident as it would always carry over sized and over dimensional loads. Whereas the small truck that normally operate within city limits is easy to navigate. So the insurance premium for bigger truck would obviously be high as compared to small truck. However if a small truck is carrying hazardous material its insurance premium will be high as compared to other truck carrying normal shipments. 

Credit history:-You credit history also affect the calculation of your truck  insurance premium. If you have a good credit score and clean history of making credit card payments and your outstanding loans with the banks you might get benefit of this. Many insurance companies keep this factor in mind while calculating the premium. 

Previous insurance history:-Your previous insurance history is also taken into consideration while calculating the premium.  There should be no breaks between the insurance and your insurance history provides fair idea to the insurance company about the losses or claims that you have filed with your previous insurers. Clean will the history lower will be the premium and vice versa. 

Location of operation:-Every US state has different way of calculating the truck insurance premium. Criteria of calculating the insurance premium depends upon on history of claims, driving pattern etc. Whether you operate in coastal area, hilly area or area prone to heavy snow also affects your insurance premium. Maintaining a commercial driving license for minimum 2 years also helps you in paying a lower premium comparatively.

 Driving record:-While you are recruiting drivers for your flatbed trucking company in Manhattan, you need to keep this point in mind the driving record of your drivers. The impeccable driving record of your drivers will surely help you in paying reduced premiums as compared to the drivers who have not a very good driving record. Bad drivers are more prone to cause accidents and you need to pay higher insurance premium for the same truck if being driven by a driver with clean record.