When buying insurance, it can sometimes seem as though premiums change on a whim.

But the truth about changing rates comes from a fluctuating insurance market that is cyclical in nature.

In a soft market, business owners can take advantage of broader terms of coverage, increased capacity, higher available limits and competition among insurance carriers for new business. But in a hard market, buyers are faced with increased premiums, diminished underwriting appetite, restricted coverage, and less competition.

While many business leaders have enjoyed the benefits of a soft market for years, several factors are causing commercial truck insurance rates to rise. Among them are catastrophic losses (such as floods, hurricanes, and wildfires) and higher than normal claim costs due to nuclear verdicts. In turn, underwriters that are struggling to overcome losses tend to exercise caution.

All in all, insurance buyers are facing difficult decisions regarding their insurance coverage. Here are 6 steps you can take to stay ahead of rising insurance rates:

Related Post: The Next Generation of Cargo Insurance: Real-Time and On-Demand.

1) Understand your insurance program.

You don’t need to be an expert on your coverage—that’s the role of your insurance broker—but you should always check to ensure your policies account for your business’s greatest exposures. A firm understanding of your coverage also ensures you’re not overlooking any exclusions. This knowledge will help you secure the right policy for your business. Ask your agent or account manager to review your policy with you and get the guidance you need on making adjustments as needed, especially during a hardening market.

2) Refine your risk management efforts.

Where possible, take the time to double down on your record management and loss control data. Doing so will make your business more attractive to insurers. Motor carriers without a safety manager or documented safety procedures can have a tough time securing favorable quotes. But your broker should be able to help you review existing policies and procedures. Ask your agent to make suggestions on how to get the information underwriters will need in order to get you the rates you deserve.

3) Know your loss history.

In a hard market, underwriters will be especially critical when reviewing loss trends. As a follow on from step 2, be prepared to explain the factors contributing to a specific loss. You’ll also need to clearly explain the steps you’ve taken to mitigate future losses.

Related Post: Do I Need Trailer Interchange or Non-Owned Trailer Coverage?

4) Budget wisely and plan ahead.

In some cases, premium increases are unavoidable. Even in a soft market, business leaders ought to take insurance costs into account alongside their other normal expenses. Best practice dictates that the more time you allocate for the quoting and the renewal process, the more options you’ll have. Your agent will also have a better chance at pricing the right solution and fine-tuning your policy if you’re being proactive.

How do you know whether you’re planning well enough ahead? That’s based on your fleet size. As a rule of thumb, you should be reaching out to your agent at the following times:

• 1-9 trucks or power units: 45 days from your policy’s expiration date.
• 10-50 trucks or power units: 90 days from your policy’s expiration date.
• 50+ trucks or power units: 120 days from your policy’s expiration date.

5) Work with the right insurance agency.

Motor carriers too often shop for insurance quotes like they shop for fuel. But changing agents and insurance companies each time you get a cheaper quote elsewhere are big red flags for underwriters. The reason? Insurance companies don’t want to insure instability—they’re always more willing to insure businesses that can demonstrate stability. That’s why it’s vital to have a trusted insurance professional advising your business. Partnering with a broker that has strong carrier relationships and undisputed knowledge of your industry can mean the difference between a hard stop to your operations and sustainable business growth.

6) Communicate early and often.

In order to understand how a hard market might affect your business, it’s imperative to keep the communication channels between you and your agent open. Starting the renewal process early can also give your agency more time to secure the best coverage for your business.

Business owners who proactively address risk, control losses and manage exposures will be better prepared in and out of a hardening market than those who do not. Work with your broker now to prepare your business for changes down the road.

The post The 6 Steps to Staying Ahead of Rising Commercial Truck Insurance Rates appeared first on Commercial Transportation & Trucking Insurance - Reliance Partners.

Thinking about starting your own trucking authority? Before you choose a company name or register with the DOT, here are answers to some of the most common questions about new venture trucking insurance!

1) Do I Really Need a $1M Liability Policy?

The short answer—yes. While the limits of auto-liability required by the FMCSA (Federal Motor Carrier Safety Administration) start at $750,000 (required limits start at $1,000,000 for registered hazmat-haulers), nearly all shippers and freight brokerages require $1,000,000 of auto-liability insurance—and at least $100,000 of motor truck cargo insurance—to even be considered when booking a load.

This $250,000 buffer protects both the freight broker and the shipper in the event of a loss. The increase to liability limits also shields you from overflow when accidents involve fatalities. $1M is the average cost for losses involving fatalities, here, but this figure can climb closer to $3M when you start to account for property damages, funeral costs, pain and suffering compensation, attorney fees, and more.

Even if the accident isn’t a fatal one, covering your bases with the right amount of liability insurance can protect your business’ reputation and your livelihood. Having anything less can end up costing you more in the long run.

2) What Other Coverages Do I Need?

Motor Truck Cargo
Often referred to as MTC, or simply as Cargo insurance, this line of coverage protects the goods you or your company are hauling. For example: in the event of an accident involving you and your load of building materials, refrigerated seafood, or any other cargo, MTC insurance would protect the cost of replacing those goods or paying out to the customer.

Most companies combine $1,000,000 of auto liability insurance, along with $100,000 of cargo insurance to cover what most in the industry refer to as, the basic necessities of trucking insurance. Having both auto liability and MTC make you eligible to haul for hire.

Comprehensive and Collision Coverage
Otherwise known as physical damage coverage or Phys Dam, this line of coverage will cover your truck and/or trailer for the appraised value at the time of the claim, in the event of damages incurred in an accident or while parked on a lot. The value of your truck is set by you, the insured, and represents a smaller percentage of the insurance premium for the year. Compared to auto liability, this coverage only makes up a small percentage of your total premium.

Related Post: The Next Generation of Cargo Insurance: Real-Time and On-Demand

3) How Much Can I Expect To Pay?

Insurance costs vary from state to state. Premiums also fluctuate heavily by a number of factors like driver experience, age & type of vehicle, your radius of operations, commodities hauled, motor vehicle reports for you and other drivers, safety scores and several other factors. Regardless, the average costs to appropriately insure your business from damage to others (in the form of auto liability insurance), damage to cargo (in the form of motor truck cargo insurance), and damage to your own equipment (in the form of physical damage insurance) can range between $8,000 – $25,000 per year.

This cost may surprise you. But even if you’ve been running under someone else’s authority, have years of experience under your belt, and millions of miles logged, new trucking companies still fall under the category of “high-risk” due to the lack of history tied to a particular DOT authority. If you’ve been running under someone else’s authority, you may be accustomed to paying $1,000 – $5,000 a year for insurance.

Related Post: Do I Need Trailer Interchange or Non-Owned Trailer Coverage?

Remember, the insurance you need to purchase prevents you and your new business from entering into a financial nightmare. Your insurance also protects your way of life. So, after you’ve made the decision to start your own trucking business, purchase (or lease) your new truck or tractor, apply for your DOT number and/or Motor Carrier authority, contact a licensed insurance broker. The right agency will shop the markets on your behalf and work to get you the insurance product you need to be successful on the road and beyond.

The post The 3 Most Common Questions About New Venture Trucking Insurance appeared first on Commercial Transportation & Trucking Insurance - Reliance Partners.

When you venture into the truck business, one of the key requirements you need to fulfill is taking out commercial truck insurance quotes for your vehicle or fleet. To pick the ideal policy, you should check relevant information about your trucks. One of the first things you must do is to compile a list of details about the trucks, such as model, make, year, mileage and VIN (vehicle identification number). This information is required to fill out application forms for commercial truck insurance companies.

Make an effort to identify the various options available on the market. You should find out the names of reputable commercial truck insurance companies. One of the best ways is to ask for recommendations from trusted colleagues.

Another way to find commercial truck insurance companies or commercial transportation insurance is through online research. You can check out websites that display directory listings of various commercial truck insurance companies. Online high-risk insurance comparison tools provide a convenient way to compare plans and insurers.

To perform a more organized search for commercial truck insurance companies, avoid passively browsing the websites of various commercial truck insurance companies. Remember, there are so many commercial truck insurance companies on the market. Creating a shortlist of viable choices is a key step in the process. To do this, take note of the details provided by each commercial truck insurance company and compile these into a comprehensive spreadsheet so you can better compare alternatives.

You should determine the type of information needed to make an informed decision. When conducting comparison shopping, consider the following factors:

• Benefits
• Coverage
• Terms and conditions
• Price
• The reputation of commercial transportation insurance firms

A key factor to consider is the reliability and reputation of commercial truck insurance companies. How long have they been in the industry? Are they are known to deliver or are they flooded with customer complaints? A sure way to check is through browsing consumer review websites, such as Yelp, Better Business Bureau (BBB) and RipOff Report where you can find feedback from other customers.

How to get high-risk truck insurance

Contact representatives from the short list of commercial truck insurance companies. Once you have created a list of the best options, you should now take the time to talk to a high-risk truck insurance representative. They can explain to you in detail about the commercial truck insurance coverage and terms that their insurance company offers.

Remember, it is important that you understand all the commercial transportation insurance terms, including fine print before making your final choice. Do not hesitate to ask questions if you find it necessary. On the other hand, you may want to hire a commercial transportation insurance agent to help you navigate through the insurance jargon. It pays to educate yourself and conduct research on commercial truck insurance companies alternatives so you will be sure to make the best choice.

Commercial truck insurance coverage options

Commercial transportation insurance providers can offer different types of cover for your trucks, which ensures peace of mind. Roadside assistance is applicable when the truck is exposed to damage, theft or breakdown. It can also apply if the driver or passengers are injured. It may include storage, towing, hotel stay and personal transport.

Personal goods (luggage) can be covered up to a pre-determined amount. You can choose a higher cap for optional equipment if desired. With owner operator truck insurance, the liability clause covers damage to other people’s property. Meanwhile, personal injury may be covered up to an unlimited amount.

If a vehicle owner becomes a party to a dispute, expenses for legal aid will be covered up to pre-determined maximum. If a driver or a passenger is injured in an accident, a specific amount will be paid for medical disability or in case of death. Amounts listed in the commercial transportation insurance contract are per person.

As part of commercial truck insurance companies roadside assistance, the insured’s truck and trailer are towed from the site of the accident or breakdown to the nearest workshop. A commercial truck insurance companies deductible may be applicable.

Optional commercial transportation insurance coverage

• Truck tools – useful if you store valuable tools in the truck or trailer
• Interruption – includes loss of revenue due to damage to the vehicle
• Liability – applicable if you are carrying goods
• Special facilities – for trucks or trailers with unusual attachments, design or high value
• Special features – for lacquer or other custom surface finishing that is more expensive than standard features from the factory
• Responsibility for using a crane – if you have a truck with a mounted crane
• Liability for goods in the crane – if you have a truck mounted on a crane and lift another’s goods against payment
• Snow plowing – If you are using the truck for snow plowing
• Dangerous goods – if you transport goods covered by the ADR Convention

Commercial truck insurance companies may offer discounts based on a variety of factors. For instance, the insured may take advantage of a 15 percent discount in the event that the owner is a permanent driver of the truck. A five percent discount may apply if drivers attend a course in defensive driving. The same applies when a blind spot sensor, rear camera sensor or an anti-scratch system like ESP or similar is installed on the truck.

If you choose a higher deductible for commercial transportation insurance, you get a lower price. The standard commercial transportation insurance deduction can be set in the contract, but you can choose a deduction of up to $100,000 for a slightly cheaper insurance. In some cases, you can obtain discounts if you are a member of one of the insurer’s partner organizations. Depending on the commercial transportation insurance provider, you may get up to 18 percent discount if you take out commercial truck insurance for a large fleet.

It is possible to earn commercial transportation insurance bonuses when you do not claim for three years or longer. Commercial truck insurance can be tailored to suit specific needs. Should you insure many trucks, the insurer may talk about the possibilities for a fixed price and flexible mileage.

Commercial truck insurance is highly varied and customized. This applies when your business only needs a simple truck insurance that covers statutory liability insurance.

Additional transportation insurance considerations

The value of the truck must correspond to the market value. Therefore, it may be necessary to adjust the value of the truck when it has been insured for a while. New trucks use new value items as a basis for the valuation. When it comes to transferring a bonus from a company car to a truck, transportation insurance companies provide varying guidelines.

For this reason, it is possible for a bonus from a car or motorcycle to be transferred to a truck with a total weight of up to 16.500 pounds. The insurer may not approve the transfer of bonuses from a car or motorcycles below 16.500 pounds to trucks over this weight.

Interruption cover gives you money every day after the truck is damaged. The maximum daily amount applicable is indicated in the contract. There are deductions for the first three days. If you ship items belonging to others, you will need liability or commercial transportation insurance. The transportation insurance or high-risk truck insurance covers the legal liability for damages that the insured may incur.

If you have a crane on the truck, it is strongly recommended that you buy crane coverage. The transportation insurance covers legal liability with the use of a crane mounted on your truck. Damage to items lifted by the crane is also covered. Some operator owners ask whether they need extra insurance when driving a snow plowing truck. Snow damage liability is covered without additional commercial truck insurance companies. To cover damage to the truck, power transmission requires additional coverage for snow removal.

Commercial transportation insurance

Commercial transportation insurance is one of the oldest forms of insurance and has played an important role in the development of world trade. Truckers should take advantage of the largest commercial transportation insurance brokers.

Good insurers have expertise in all aspects of commercial transportation insurance and always focus on ensuring that customers obtain the best service. The quality of customer service can be expected from the world’s leading commercial truck insurance companies. In addition, they provide transport damage specialists who handle all types of incidents in a professional and cost-effective way.

Size and experience give prominent commercial transportation insurance providers a competitive edge, which is reflected in the many leading companies that have chosen the insurers. They offer a wide range of transportation insurance products and additional services that can be tailored to the customer’s individual needs.

Commercial truck insurance companies can provide insurance for all types of goods during transport or storage. From fruit and petrochemicals to cars and dairy products, there is a wide variety of options available on the market. The coverage can also include high-risk products, such as technological components.

In addition to traditional commercial transportation insurance, insurers also offer a host of other products that are specially designed to meet the needs of different industries worldwide, including business interruption insurance and more. Transportation insurance providers always focus on offering services that are transparent, dynamic and cost-effective. These include:

– Review and analysis of risks
– Advice on transportation insurance risks
– Design of transportation insurance programs
– Preparation of commercial truck insurance terms
– Negotiation with high-risk truck insurance markets
– Administration of high-risk truck insurance programs
– Comprehensive damages service for high-risk truck insurance
– Risk management programs for transportation insurance

Transportation insurance: Liability

A broker or insurer can help you customize a truck insurance that will meet your needs as a truck owner. Truck insurance must incorporate a liability component. Additional coverage can be selected to meet specific requirements. For truck owners who transport goods, liability coverage or commercial transportation insurance may come standard. Commercial truck insurance coverage is based on relevant laws. Commercial transportation insurance covers the legal liability of the assured as a vehicle owner or carrier for damage or loss of goods, incurred during transit or off-loading.

For companies that buy or sell goods, a separate commercial transportation insurance can be arranged. Insurers help you take out truck insurance that is best for your business. If you own a registered vehicle without a valid liability insurance policy, you may be required to pay a fee for each day the vehicle is uninsured. You can avoid fees by purchasing high-risk truck insurance.

All registered vehicles must have liability insurance regardless of whether the vehicle is in use or not. It is legally required under motor vehicle laws. The owner of the vehicle is responsible for taking out high-risk truck insurance.

Truckers without statutory high-risk truck insurance on their vehicles risk being held financially liable for damage in the event of a traffic accident. Without high-risk truck insurance, the owner must subsequently pay compensation for the other party to cover damages. In case of serious personal injuries, the amount may total more than a $1 million, which could ruin the finances of the uninsured truck owner.

If you have received a letter stating that you do not have valid high-risk truck insurance but believe this is incorrect, please contact your insurance company. If your vehicle is not in use, you can submit a notification to the relevant regulatory body. However, if the vehicle is only in use for parts of the year, the high-risk truck insurance must be discarded for the time being to avoid paying insurance.

If you believe that the vehicle has already been unregistered or wrecked, contact the roads administration to avoid fees. If a vehicle has been stolen, you should contact the police and ensure that it is reported stolen to avoid future charges. If you have sold the vehicle, make sure that the correct sales receipt has been submitted.

Premiums

The premiums on commercial truck insurance are due monthly and are payable in advance. Although this type of insurance is available through dealers, it is cheaper to purchase policies directly from insurers. Truck owners are expected to pay premiums for the life of the high-risk truck insurance policy. Any cancellation of the high-risk truck insurance must be communicated with the insurance company and will not affect the credit score. However, truck owners are liable for the payment of premiums before the cancellation of the commercial truck insurance policy.

The post Commercial Truck Insurance Quotes appeared first on Commercial Transportation & Trucking Insurance - Reliance Partners.

The insurance of company vehicles, including trucks is a key component of an organization’s operating budget. According to a study published by GE Capital in 2009, companies with a fleet of vehicles could save significantly on commercial truck insurance by looking in detail at the contracts in order to optimize the costs.

First of all, it is important to note that only liability insurance is mandatory on a vehicle. To reduce the cost of insurance for your trucks, you can consider consolidating all your auto contracts into a single contract: fleet insurance. It often takes at least five vehicles to qualify for a fleet contract, but some companies agree to insure fleets with fewer vehicles (three, for example). The vehicles insured in the fleet contract can be different types of trucks and have varying uses.

A key aspect of this form of commercial truck insurance is the reduction-surcharge coefficient for drivers. For example, a maligned driver does not enter the fleet bonus calculation. To calculate costs of insurance, the insurer takes into account the number of vehicles and the loss ratio or overall premium. But, in general, the price is often cheaper than individual contracts.

By adopting this type of contract, the insured can achieve significant savings. Some fleet contracts include an assistance guarantee in case of problems, a guarantee for all drivers according to the needs of the company as well as an early termination indemnity guarantee if the trucks are rented on a long-term basis.

In terms of truck insurance, nothing is really engraved in stone. As such, it is important to know how to work with the insurer because the most discreet customers often receive the least compensation and ultimately pay for the others.

Prevention and behavioral analysis

The best way to optimize the costs related to truck insurance is prevention. Auto insurance is intrinsically linked to the frequency of claims. Improving driver behavior through training in particular, enables organizations to take advantage of a major cost reduction lever. By ensuring that drivers behave in an exemplary and responsible manner, the positive impact on claims, fuel consumption or wear and tear of fleet vehicles is felt almost immediately.

The impact of a damaged vehicle on the company’s operation is not always measured. However, not all contracts provide for an operating loss guarantee, It has been proven that the prevention of accident risks through training and communication can reduce claims by 40 percent and thus significantly reduce the price of policies.

Enroll the services of a broker

When a business uses a commercial truck insurance broker, the latter must be paid. However, it is wrong to view the broker only as an additional expense. Brokers have years of experience negotiating with companies. It is common for their arguments to bear fruit, thus leading to a significant decrease in insurance premiums. This largely offsets the broker’s fees. When you renew your contract, it may be wise to ask a broker to analyze your situation and assist you in optimizing your commercial truck insurance.

When the fleet becomes too large (200 to 250 vehicles), it should not be confined to conventional forms of insurance. Self-insurance is likely to generate real cost savings and is above all an ideal system to have real visibility on the cost per vehicle, The company makes a deposit with its insurer and the amount is recorded and used for compensation to third parties in the event of a loss.

When the pre-determined amount is reached or exceeded, the insurer takes over. This mechanism often provides savings in terms of insurance tax. It is also a fairly effective tax exemption option since the deposit is immediately deducted, It is possible to expect a gain of 9 to 12 percent over traditional insurance regardless of the angle at which the problem is observed.

The most important mistake is to focus exclusively on price. Organizations should consider both the additional services and the sustainability of the relationship with the broker or insurer. Viewing the insurer as a real partner allows policyholders to enjoy more positive results than simply consuming a service.

Transparency

Quotations made by insurance companies are based, like any insurance contract, on the analysis of a risk. Also, when requesting a quote, it is essential to provide all the requested items in as much detail as possible. Statistics are essential for insurers. The service provider will have to furnish you with the list of claims that it handled in a 12-month period.

On the other hand, renegotiating a contract too often can have unfavorable effects. Insurance companies record every request for renegotiation. When the solicitations are too frequent, the insured will receive a reevaluation but the insurer may not examine the situation adequately. Experts recommend adhering to a three to four year cycle for an in-depth examination of the contract.

The post Commercial Truck Insurance – How To Keep Costs Low appeared first on Commercial Transportation & Trucking Insurance - Reliance Partners.