Last Updated: April 26, 2012

5 Proven Strategies To Save Money On
Owner and Operator Insurance

Proven strategies to save money on owner and operator insurance. As an owner and operator, you are effectively running your own business, so bottom-line profits and safety are your ultimate goals. I’ve made a list of 5 ways you can save money on the trucking coverage you need to protect you and your livelihood.

Tip #1: Have Commercial Driving Experience

Driving experience. Commercial truck driving is a demanding job, and there is a lot to learn. Before becoming an owner/operator, I suggest you get commercial driving experience as a company driver. Many large trucking companies have excellent in-house training programs, or you could choose to attend a well-regarded truck driver school. In either case, I recommend two full years experience being a company driver before buying your own truck and starting the business of being an owner-operator. It is both easier and less costly to get an insurance for an owner/operator who has at least 2 years experience operating a commercial vehicle.

Tip #2: Keep Your Motor Vehicle Report Clean

Keep your MVR clean. Motor Vehicle Reports are a strong indicator of driver behavior, and are used extensively in the insurance underwriting process. A clean MVR will greatly improve your chances of getting a cheaper rate on your insurance. Speeding and accident convictions over the previous 36 months are always taken into consideration, as are even minor violations such as failure to wear seatbelts. Major violations such as excess speed, or DUI’s make getting insurance very challenging. Protect your livelihood by keeping your MVR clean.

Tip #3: Keep Your Credit History Clean

Keep your credit history clean. By paying your bills on-time, and not overextending your credit, you build a positive credit history. More and more insurance companies are using credit score in their underwriting process. An individual who pays their bills on time, will become an owner/operator company that pays their bills on time. And a company that pays on time, is also more likely to do timely maintenance on their equipment, and have the financial means to grow safely over the years.

Tip #4: Get An Accurate Appraisal On Your Truck and Trailer

Get an accurate appraisal of what your equipment is really worth. When a covered loss occurs, insurance companies generally pay what’s called “actual cash value” or retail price minus depreciation. Too many times, I have seen customers overvalue their equipment; when a claim happens, and they have to settle for much less than they thought it was worth, no one is happy. There are many resources who can give you an accurate and fair appraisal including websites, newsletters and trucking publications. Use a quality one, and adjust the value annually at your renewal. This is a great example of spending a little time now to avoid BIG issues down the road.

Tip #5: Pick Your Insurance Agent Carefully

Pick your insurance agent carefully. An agent that specializes in trucking insurance, and can provide references for you of other satisfied trucking customers, and an agency that has been involved with trucking companies and trucking organizations is important. These agents will be well-connected with the insurance companies, as well as the national and state trucking organizations, and provide a lot of hidden benefits towards being their customer.

If you have further questions or comments feel free to email me at mike@insuremyrig.com.

Drive safely out there!