Do you know how to prevent the deterioration of your insurance policy rates? And what affects the setting of rates primarily? Do you know the consequences unless you don’t prevent the worsening of the rates? There are really a lot of factors that affect the cost of your commercial truck insurance and your business depends on all of them. That’s why we have prepared for you these factors that can impact it and we invite you to carefully explore them right now.
Number one is USDOT Authority. So, why is the DOT Number so important? And how does it impact your truck insurance? The DOT is responsible for monitoring to streamline safety compliance. When it comes to accidents – you will make a deal with the DOT. A USDOT number is a unique identifier.In this way DOT Number can affect insurance policy rates. Insurance company will look at your DOT violations and of course it will notice your safety issues.
Next is coverage requirements. For example it will cost 750 000$ if the vehicle weighs more than 10 000 pounds and it carries non-hazardous materials. What does it mean? If a trucker has an accident and the damage is worth less than 750 000$, the government will collect from the policy and repair the damage.
Number three is operating radius. Put simply this is about the area or areas where you conduct your business. How far is it from your state? Or is it possible in your state? How dangerous is it to drive there? All these conditions will be taken into account.
Don`t forget about driving history(MVR). There everyone can see your driving record. All your accidents or serious traffic violations, they are noticed in your driving history. Every fine, fender bender and busted tail lights adds up. If you have a new violation, your insurance company will know about it and it will affect your insurance rates.
Of course your insurance rates depend on vehicle type. But the good news is that on average, trucks are the second cheapest vehicle type to insure. If you want to know the exact information, you need to look at it individually for each truck. If you haven’t purchased a vehicle yet, then you should know the rate for it in advance. And in addition, if you drive a newer truck, you may want a full coverage of collision and so on.
And last but not least is cargo. Everything that concerns cargo can affect here. For example things like value or nature of goods, risks, constructions and everything that can hamper the delivery of the goods. Therefore, understand in advance what you plan to transport. Maybe it will be hazardous or bulk materials and what conditions of transportation are required for them by law.
