- Unsafe Driving
- Crash Indicator
- Hours-of-Service Compliance
- Vehicle Maintenance
- Controlled Substances and Alcohol
- Hazardous Material Compliance (Hazmat Trucking Companies)
- Driver Fitness
Insurance is one of the most important factors when starting your trucking company. Trucking Insurance is one of largest expenses you encounter along with fuel, maintenance, and driver pay. It’s required to run your trucking business legally and there’s no…
Insurance is one of the most important factors when starting your trucking company. Trucking Insurance is one of largest expenses you encounter along with fuel, maintenance, and driver pay. It’s required to run your trucking business legally and there’s no way of getting around it. When you get your trucking authority, you will be required to shop around for insurance. We’ve put this article together to help explain the factors that go into quoting rates for trucking insurance and how you can get the best rate for your company.
What do insurers look at when quoting trucking insurance rates?
Trucking insurance companies look at a multitude of factors when quoting insurance. Insurers will usually ask for your MC number or USDOT number to give you an accurate quote on your trucking insurance.
1) Location your company is based out of:
States like Florida, California, New Jersey, New York tend to have higher trucking insurance rates. Some parts of Texas have higher rates, and some more rural parts have lower rates. States like Kansas, Oklahoma, Georgia tends to have lower insurance rates.
2) What type of cargo your company is hauling
Rates can be higher depending on the risk type of your cargo. Hazmat drivers tend to have higher rates due to the danger of their cargo, however they’re compensated with higher rates than non-hazmat drivers.
3) Years in business
New entrant trucking companies tend to have higher premiums in their first year. More experience and a clean history help lower your rates.
4) Loss Run history
Your loss run history is a report of any claim your business has had while insured. It shows the insurance company how risky your company is to insure. The less claims you have, the better it is for your rates.
5) Length of routes
The number of miles your trucking company runs affects your trucking company’s insurance rates. If you’re running more miles, your rates will be higher. However, running more miles results in more money made on loads, which makes the increase in insurance rates worthwhile. If you’re running interstate (between multiple states) or intrastate (within your home state) and if you’re running within a 150-mile radius affects your rates.
6) CSA scores
CSA Scores are how the FMCSA measures the safety performance of commercial trucking companies and their drivers. They take into account 7 factors known as BASICs
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