7 Ways To Reduce Your Business’s Truck Insurance Premiums

Used Truck Truck Insurance Premiums

Truck insurance premiums can get quite expensive; it can cause a massive chunk out of your business’ budget annually. Although costly, you will always need one, and the advantages are significant, too. No one can predict when auto accidents might happen, so it is prudent to be prepared. The good news is that you can reduce your annual truck insurance premiums.

Here are some ways for you to have lower annual payments:

  1. Ask around first.

Before you make a final decision as to your truck insurance provider, you should shop around first: get at least three (3) to four (4) quotations from different companies. That way, you’re sure that you are getting the best price and option possible for your trucks.

When you talk to different companies, ask about the following factors, too, so that you can make a sound decision:

  • Their financial standing as a company, so that you have peace of mind that they are a good company.
  • Recommendations, ratings, and feedback from friends, family members, and their other clients.
  • Ability to answer your questions.
  1. Check and update your insurance files.

Update your insurance files semi-annually. Doing this will ensure that you are not paying anything more than the fees that you should pay. You may be paying for insurance premiums for trucks that you no longer own, or that are already outdated. Be sure to keep track of your schedule of payments as well, to be certain that you are not paying double premiums for the same truck.

If you have a fleet trucks, also check your files to see if all of these are still with you today. A lot can happen in a year, as you may have sold some of your vehicles, or some of them may no longer be operating.

  1. Before buying new trucks, check for the insurance costs, too.

When you buy a new vehicle, you usually compare from among many models or truck brands; do the same as well with your insurance providers. Doing this is especially important when you are going to purchase a second-hand truck, as the insurance premium on those tends to be more expensive than its brand new counterparts. Hence, it is vital for you to factor this as well, for your long-run expense.

  1. Hire experienced drivers, and check their age.

When hiring, do select the driver-applicant who are most experienced. You cannot put a price on experience, as the more skilled your driver is, the lesser chances of incurring any insurance expense you will have later on.

It is a requirement in the law for business owners to insure their truck drivers, too. This cost is necessarily included in the insurance premium of your trucks as well. Insurance premium on employees can vary based on age and gender, and costs tend to be more expensive with older employees. Review if all these employees are still currently working with you, or they may have left your company already.

  1. Lower your insurance coverage in older trucks.

Check how much each of your truck is worth. From this value, compare it with the insurance coverage that you are paying for. If your insurance coverage is higher than the actual cost of an ancient car that has already depreciated, then you should consider lowering the blanket, so you can pay lesser premiums, too.

For example, it will not be worth paying a $10,000- coverage for a truck in your company that is now worth only $5,000.

  1. Buy other insurances from the same company.

If you are satisfied with how your insurance company operates and deals with you, then it is to your financial advantage as well if you purchase your other insurance needs from the same company.

Some of these other insurance policies include the following:

  • Travel insurance
  • Employees’ insurance
  • Company building and personal home insurance
  • Personal life or accident insurance

When you have purchased multiple policies from a company, they will consider you as a valued and loyal client and can give you special rates, offers, and discounts.

  1. Choose an agent who gives you the lowest cost possible.

If you ask your agent what the available options are for you to reduce your insurance premium costs, they will be more than willing to help you out with that.

In an agent’s mind, it is better to sell a cheaper premium than to sell none at all. Hence, do not think that they are there to sell you the most expensive option available. Don’t be shy, too, to ask about discounts and promos.

Conclusion

With all these in mind, remember that it is still crucial for you to purchase truck insurance premiums. Insurance is always an expense that will be worth it later on, if the need arises for you to use it.

These above mentioned ways can help you reduce your company’s insurance expense for your trucks. As you can save on insurance costs, you can use the money for other income-generating activities for the company, such as investments.