When you’re the owner-operator of a trucking business, saving money is as important as making it. One expense that can add up quickly is insurance. For a trucking business, the main insurance types to consider are general liability, workers compensation, commercial auto, property, and excess liability. All of these types of insurance can potentially be costly, but they are all essential. Lowering your monthly premium as much as possible will allow you to decrease your operating costs and increase your profits.
Business Auto Insurance
Tactics used to reduce auto insurance for your trucks, in many ways, parallel the tactics that you can use to lower your own personal auto insurance. The first is to come out and ask for any and all discounts you can possibly get as the owner-operator of your business. Insurance companies won’t necessarily aim to charge you as little as possible. If you know you and other drivers working for you have excellent driving records both personally and professionally, make sure that this fact is taken advantage of. Installing security features on your vehicles, and insuring multiple vehicles are a couple of ways you can potentially get a lower rate on your insurance.
The longer you are in business and manage to avoid an accident, the greater chance you have of receiving a discount from your insurance company, and many will also give you a discount once you have stayed loyal to them for some time. If possible, you should also pay your premium in full, as those who pay in full are able to get a more significant discount than those who make monthly payments. It’s also one less bill to worry about month to month. The right financing through ENG Financing is one option that can help see that you have the cash on hand to make this possible.
Know Your Options
Whether you are signing up with a new insurance company or not, it is helpful to know what types of rates you can get from the insurance company’s competitors. Getting offered a lower rate from someone else doesn’t mean you should jump ship, but you can show the figures to your current insurance company in order to motivate them to offer you a better deal.
Toot Your Own Horn
If you’ve had a good, safe year in your business, take the time to brag to your insurance company on what a good customer you are and ask for a premium that reflects that. Generally speaking, insurance companies are not going to evaluate for your benefit without a little legwork from you. Keep track of various records and reports, including a copy of the insurance company’s policy history report and submit your proposal for a lower rate at least ninety days before your premium comes due.