Outside of owning and operating a truck (i.e., leasing and fuel), insurance will be the next most expensive cost for trucking companies. Insurance for a single truck can run anywhere from $5,000 to $10,000 per year, although there are no limits if you want more extensive coverage and reduced risk.
It is often thought that contacting a handful of insurance agents and having them bid for the cheapest rates is the best and only way to approach finding affordable trucking insurance.
We have received hundreds of phone calls from trucking companies asking us to provide the cheapest truck insurance quote possible, sometimes excluding insurance providers from the quote.
With truck insurance rates constantly on the rise, while seemingly disregarding your excellent safety history, it is understandable that this has been the traditional way trucking companies, owner-operators, or companies with fleets of vehicles approach commercial truck insurance.
Let’s look at the pros and cons of finding the cheapest commercial truck insurance quotes.
There are benefits to seeking quotes from multiple commercial truck insurance providers.
Having multiple insurance quotes allows you to find different rates, compare them side by side and determine what is the cheapest truck insurance with the best truck and cargo coverage for your company.
This process also seems to work well to quickly receive multiple quotes several weeks before your insurance expires.
It can also help you find a new insurance agent if you are not satisfied with the way your current one handles your program. Requesting multiple insurance quotes opens the door to several different agents, allowing you to start building relationships and determining how they communicate with and understand your company.
There are a lot of bad insurance agents out there, so do your due diligence and find two qualified agents that specialize in trucking insurance who can present your business to insurance providers.
You want an agent that is looking out for you and your company’s best interest, looking for ways to save you money without cutting corners on your truck and cargo coverage. There are many ways companies can save on truck insurance, but one quick and easy way is paying your annual premium in full. This alone can save you around 10% compared to paying monthly.
We specialize in commercial trucking insurance, so hopefully you are considering Northern Insurance Specialists as your commercial trucking insurance agency.
We can help you get a quick quote started if you are getting ready for your renewal or just getting your trucking company started.
Along with the benefits of requesting multiple quotes, there are always negatives.
The major problems in searching for the cheapest trucking insurance rates is that there are a lot of insurance companies out there with a varied understanding of the trucking industry and the many types of coverage that should be considered very closely.
Commercial trucking insurance coverage should not be looked at as a commodity, especially when the details of your coverage can mean expensive costs later if the coverage is weak.
Solely focusing on the cost of insurance is not the best way to approach the risk your company faces on the road with your cargo and drivers.
This is because every fleet is different. All companies haul different cargo, operate in different locations and routes, employ drivers with vastly different safety histories, and own vehicles with drastically different safety add-ons such as forward and driver facing cameras or collision mitigation technologies.
For the same reasons no two companies are identical, there are no two insurance policies that are exactly the same. So, if you are comparing two quotes side by side you may be looking at two entirely different policies.
For example, underwriters can quote much different cargo insurance as there are dozens of commodities to include or exclude in the coverage. It may be cheaper to have limited cargo coverage, but having broader coverage provides a better safety net if you happen to haul many different types of cargo.
When it comes to timing, looking for the cheapest trucking insurance quote when your insurance expires in two or three weeks can lead to a bidding frenzy and limited time to fully review the details of what is quoted.
If none of those quotes are what you were hoping for, you do not have time to seek additional quotes from other agents.
The worst situation to be in is getting bad commercial truck insurance coverage and being committed to it for a year when one accident can ruin your business.
We recommend you start a custom quote online or call us directly to speak with a licensed trucking insurance professional.
Before we can get you an estimate, we are going to need some information.