The 5 Things You MUST Know Before You Purchase Commercial Truck Insurance

trucks.jpg

1) It is possible to pay too little for your commercial truck insurance.

You probably don’t think this sounds right but consider: if you are with a substandard commercial truck insurance facility – and believe us there of been many of these over the years – your commercial truck insurance company can literally go away overnight. You don’t want to be in a position of having to rely on your state’s insurance guarantee fund. Be cautious of “Insurance” that is being provided by risk retention groups and other similar commercial truck insurance facilities. They can sometimes be legitimate, but they can also be unsound in their financial structure.

Over the years, many of these have come onto the scene with a lot of fanfare; quickly written a large volume of commercial truck insurance policies and then abruptly gone out of business; often times leaving motor carriers in a very difficult situation.

Also, you can pay too little with a legitimate commercial truck insurance company. Agents and underwriters can sometimes write your commercial truck insurance below adequacy. This is an insurance term that means the level at which it is impossible for the commercial truck insurance company to make a profit. If your program is priced too low, eventually you will lose your insurance and if you’ve had a couple of losses in the meantime you can find yourself in a very uncomfortable position with very little negotiating leverage and facing the prospects of unavoidable - sometimes massive- premium increases.

2) Neatness counts! Clean it up. Neatness really does count.

If you look bad on paper - or in person - you may not get a fair shake from the commercial truck insurance purveyor. Poor safety scores, poorly maintained driver files, maintenance files, etc. may cast an unflattering light on your commercial truck insurance risk. Also, a messy terminal, office, garage maintenance facility or parking lot can give a poor impression that results in unfavorable insurance rates. Greasy floors, piles of old tires, wrecked/salvaged equipment in disarray on your property is not the impression you want to portray. If a physical inspection of your facility shows a lack of organization, cleanliness and attention to proper order it is common for commercial truck insurance professionals to assume there is a lack of appropriate attention to safe operations. This may or may not be true, but perceptions can be reality and it’s important to make the best impression you can on underwriters and safety inspectors. So clean up every aspect of your operation to help drive down your commercial truck insurance costs.

3) There are many important numbers that influence your commercial truck insurance costs.

FMCSA (https://safer.fmcsa.dot.gov) / loss runs / policy limits and deductibles. Know your numbers. Whether it is your Safer scores, your loss runs, your policy limits and deductibles, it is important to know your numbers as they relate to your commercial truck insurance program. In order to negotiate your best commercial truck insurance deal, you need to know where you’re starting out and where you’d like to wind up.

This is why it is critical to possess a command of the specifics in order to negotiate effectively with your commercial truck insurance /underwriter. Sometimes your numbers can be inaccurate. If you are conversant with your numbers, then you are in a position to be proactive and request corrections to be made that may benefit you significantly; really saving you money on your commercial truck insurance program.

cargo-semi-truck-insurance.png

4) Survey the commercial truck insurance marketplace. Know what rates are doing.

Your insurance rate will be priced based on your individual risk as well as what is happening in the commercial truck insurance marketplace in general. Even if you have a good risk and favorable recent loss experience, you may be in a position of having to accept rate increases if the insurance industry is in a ‘hard’ commercial truck insurance market. It’s important to be realistic in your expectations for your upcoming insurance renewal.

If you know the specifics of your own risk and you have some general knowledge of the commercial truck insurance industry trends, only then will you be positioned to negotiate the best value. If you don’t know what’s going on with the commercial truck insurance industry, you can’t know when you’re getting your best deal.

5) If you don’t know your jewels, know your jeweler.

I certainly cannot tell a flawless diamond from cubic zirconia. That’s why if I’m purchasing a gift of jewelry I make sure I’m dealing with someone I know can trust.

When you are purchasing commercial truck insurance, you simply must have a competent commercial truck insurance agent. At Roemer Insurance / InsureMyRig, we know the difference between a fifth wheel and a steering wheel. Nobody expects a trucker to be an expert when it comes to commercial truck insurance. Yes, we are of the opinion that you have a responsibility to yourself to become informed about your insurance program, your overall operation, insurance industry trends, etc. However, you are in the business of moving freight. You are not an insurance professional, and nobody expects you to be one. This is where you need to choose your insurance agents carefully. There are a limited number of insurance agents with the level of expertise you need. Be wary of commercial truck insurance agents who lack experience in this highly specialized field. You do not have to let a rookie practice on one of your most important business aspects. Have an experienced commercial truck insurance professional you can trust.

Contact us today!!

Contact us today if you have questions, or need a fast and fair commercial truck insurance quote!