As a truck driver, getting insurance is an important, if not critical, prerequisite before you hit the road. In fact, most states and regions require commercial truck drivers to have insurance before they operate a truck. Insurance covers a number of things: collision damage, payload loss or damage, and even medical bills. It will also cover the truck driver or the company in the unfortunate event that another driver sues. When it comes down to it, hundreds of millions of dollars are lost each year as a result of truck driving collisions. Yet, insurance can be expensive, especially if it is coming out of pocket. Here are five ways to save money on commercial truck insurance.
Higher deductibles. Essentially the more you are willing to pay out-of-pocket in the instance of a collision, the less your annual insurance premium fees will be. However, while a high deductible will give you a much lower insurance rate, you want to make sure that you can afford getting into an accident. Getting a higher deductible is only worth it if you have the capital to back it up, or if the company you are working for will cover the deductible.
Add your truck onto your personal car insurance. Sometimes, if you have a relationship with an insurance company, they will be more likely to give you a discount. Insurance companies want to keep existing customers, especially customers who have a certain amount of equity or have been paying customers for a long time. Insurance companies call these “loyalty policies” and they can be much more affordable than going with a fresh new provider. In some cases, it might even be more affordable than the insurance your company offers.
Pay up front. Sometimes a semi-truck insurance company will allow a truck driver to pay their dues up front – instead of monthly payments. This can actually save an insurance company a lot of money in processing fees, so you can usually get a discount of up to 15%. You might also be able to get a discount if you pay in automatic transfers, which can save the insurance company on credit card fees. So, make sure to ask your policyholder if they can provide a discount with a different payment option.
Ask for discounts. Sometimes an insurance company will have a special discount as an incentive for signing up. For instance, if you refer a friend or if you sign up for multiple years, an insurance provider will be much more likely to sign you up for a discount. Also, if you are a trucking fleet operator and you are looking for a way to insure a number of trucks at once, a provider might be able to grant you a bulk discount.
Get your commercial driver’s license. If you have a specialized commercial license, you could save up to 20% on your truck insurance. This is because the driver is deemed less of a risk. All insurance companies weigh their rates on risk. With the specialized training it takes to acquire your commercial driver’s license, you can provide proof that you are a safe driver.