Owner operators, also known as truckers who own and drive their own vehicles, making deliveries for various companies, have several different types of insurance they must obtain. These include everything from commercial trucking insurance to cargo coverage, liability insurance, and more. All of this can add up quickly, making your small business less profitable.
But is there a better way? How can you lower your trucking insurance costs? Here are a few tips that you may want to consider whether you’re just starting out or have been in the industry for years.
Leverage Your Experience
Did you know that the more you’ve driven with your commercial license, the less your insurance will cost? This makes sense because new truckers are more likely to get into accidents, due to their inexperience on the road. The more time you spend driving your rig, the less you’ll pay in premiums because experienced truck drivers know how to avoid costly incidents. Sure, accidents still happen, but they are more likely to be caused by the mistakes made by inexperienced drivers.
Choose One Insurer for All of Your Policies
Many insurance companies offer a discount for carrying multiple policies with them. So, if you’re able to, take advantage of this “bundling option” in order to save some money on your insurance premiums. You’ll find that many companies are willing to offer you the liability, commercial trucking, and other insurance options that you need, making it easier to save. Plus, it’s simpler to pay for your insurance when everything goes to the same company. This makes missing a crucial payment much tougher to do.
Keep Your Credit Score High
Some people aren’t aware of the fact that your credit score is part of what determines your insurance premiums. There are other factors as well, but the higher your score, the more your insurance company deems you to be a responsible person both on and off the road. Therefore, your insurance will cost a little less than it would if you had poor credit.
Be Careful on the Roads
Another factor in your overall insurance premium pricing is the number of accidents that you’ve had while driving. The points on your license are a factor in this as well. The safer you are out there, the lower your insurance costs will be. However, if you end up being found at fault in an accident, you may have to pay higher premiums, due to the risk.
Have Questions? Contact Charlotte Insurance
Want to learn more about the importance of insurance for truckers who own and operate their own vehicles? Contact Charlotte Insurance. Our agents can explore and explain all available options and put together the insurance coverage plan you need.