When it comes to obtaining commercial truck insurance, it is important to have an understanding of how insurance companies evaluate your driving records. After all, your history behind the wheel has a significant impact on your premiums as well as the coverage limits you are offered.
This article will explore how your driving record is used to assess risk and determine your commercial truck insurance rates.
Your Driving Record Impacts Your Premium
It is important to remember that, although you are the customer, your insurance company is always looking out for their own best interest. Giving you a policy means taking a risk. This is why they have their underwriters do their due diligence and take a deep dive into your driving history.
Your risk level will be determined and, in turn, so will your premium. The greater the risk you pose, the more you can expect to pay for your policy.
Insurance companies may consider the following when it comes to your driving record:
- Accidents
- Traffic violations
- License suspensions
Just as a negative driving record can increase the cost of your insurance, having a clean driving record without any violations or accidents makes you lower risk —- and can result in lower premiums.
Other Factors That Impact Your Insurance Rates
Your driving record may play a pivotal role in determining how much you pay, but it is not the only factor that is considered. You can expect your insurance company to look at other components, too, before determining coverage and premiums.
Your Age and Experience. New drivers and those 25 years of age or younger both tend to be viewed as higher risk. As a result, they will likely have higher policy premiums.
The Cargo You are Hauling. It is not uncommon for insurers to ask what type of cargo you are regularly hauling. High-value cargo, high theft risk, and dangerous materials may all result in higher premiums. What you are carrying matters because it determines how much the insurance company would be required to pay if cargo is damaged, stolen, or requires cleanup.
The Age of Your Commercial Truck. Older trucks are often viewed as being a greater risk. They are more likely to break down and cause accidents. They also don’t come equipped with the latest and safest technology and advancements.
Location and Distance. Just as with any type of insurance, there is no denying that location plays a role in the cost. Some states may require certain levels of insurance and others may have high accident rates that spike up coverage. Each of these factors impacts rates.
As for distance, whether you are traveling long-haul or short-haul will play a role, as well. The more miles you drive, the greater your risk. Things like routine routes, terrain, weather, and the like are all considered. If you find yourself driving in unfavorable areas, you may see an increase in premiums.
How to Get the Lowest Insurance Rates
Being aware of these factors is a good way to secure lower insurance premiums. However, while you may be able to control your driving record, you cannot always control things like your route, the cargo you are hauling, or your age.
Research your options and work with insurance experts who can guide you through the process.
Daniel & Henry provides comprehensive, value-added commercial truck insurance solutions designed for your trucking business while reducing your overall insurance costs.