Short-haul truck insurance costs – what influences them?

It is not a secret that insurance takes up a big chunk of short-haul companies’ balance sheet. There are many factors that impact short-haul truck insurance costs and if you own such company, it is very important to know what those factors are, how do they influence the insurance cost and whether you are paying more than you have to.

Factors that impact short-haul truck insurance costs

What does the insurance cover?

First of all, you have the auto liability insurance, which covers you are legally obligated to pay if you injure someone or damage someone’s property. The law requires this one. However, if you know a thing or two about short-haul trucking and truck insurance, you know that sustaining a major truck loss can be hard to come back from. Sometimes the lost cargo is too precious, sometimes the medical bills are too expensive. In order to make those risks manageable, trucking companies get additional coverage. So, this additional coverage has an impact on how much you pay.
For instance, if you need coverage for more risks – the insurance costs will go up. So, the more risks you want protection from – the more expensive your insurance will be. In most cases.

What are your limits?

I think we can all agree that there is a big difference between $100,000 and $300,000 limit for physical damage, for example. It all depends on what you need. So, don’t skip this decision and put some serious thought in it. This goes also for bobtail insurance, cargo insurance etc.

What kind of deductible do you have?

The third factor that impacts your short-haul truck insurance costs is how much you are ready to pay from your personal finances, before the insurance kicks in. This can get pretty heavy, because, usually, deductibles are paid per vehicle. For example, if someone vandalizes you entire garage and you had more than one vehicle damaged – you would pay deductible for each of those damaged vehicles.
However, higher deductible means higher coverage limits or can get you additional types of truck insurance. In order to get the best of the situations – take some time to find the perfect balance between deductible and coverage.

How do you pay for your truck insurance?

Do you pay every month? Do you pay every year? Of course, there is a difference. By paying your truck insurance annually, you lower its cost and save more money. Switching from monthly payments to annual payments or maybe even 6 month, can sometimes get you a discount, but it will always be the cheaper way.

How often do you review your insurance policy?

Businesses change all the time – their products change, their services change, their industry changes. Their insurance needs also change. So, if your insurance policy is two, three or more years old – you may be paying for coverage you don’t really need now and not paying for coverage you actually do need now. Review your policy more than once a few years and you will find that there are things you don’t need to pay this much for.

Sure, researching truck insurance and policies may not be your favorite way to spend your free time, but it Is very important nevertheless. Because no business is out of risks. So, you want to be prepared.

You can always contact Bobtail.insure and talk to one of our insurance experts. We will help you find the best trucking insurance, find the right amount of coverage you need and save money. Don’t hesitate to fill our FREE INSURANCE QUOTE. Remember, Bobtail.insure helps you drive safe and save money on your insurance.