Myriad factors determine costs for a consumer buying truck insurance. Many factors remain hidden until after the insurance has been purchased and this can be attributed to the uncertainties associated with dates, increase or decrease in the likelihood of a claim being filed and amount.
Age is a key determinant and generally speaking, the younger the age of a driver the higher the likelihood of involvement in accident hence higher premiums.
Years of experience driving a similar vehicle attracts lower premiums but the same driver switching to a different vehicle loses that advantage and attracts higher rates at least until he proves his or her competence.
From an insurer’s point of view, a driver who has been continuously employed for a number of years attracts lower premiums since he or she is seasoned unlike a new driver.
Driving record also counts in that, a driver with moving violations even if incurred while driving a private vehicle attracts higher premiums since statistically; such a driver is more likely to be involved in an accident of some sort.
Number of years insured by the same company also determines policy price for a driver. Additional charges await drivers who have had previous policies cancelled either for non payment of premium or underwriting reasons. Drivers with current policies provide ready and reliable history for a new company which brings down premium costs along with working for a company with clean insurance record as it guarantees sound management and customer understanding of insurance policies.
Higher rates are also likely to be incurred by drivers driving within large cities as opposed to countryside or municipalities. Road condition is also a factor for companies whose drivers drive over certain types of roads or conditions where infrastructure, road congestion, traffic conditions and legal concerns vary.
Cargo also determines costs as cargo insurance is purchased to protect against damage in transit based upon sensitivity and stability of the load, theft or vandalism and fragility.
Type of equipment being driven also determines policy price as newer, modern tractor – trailers with computerized safety equipments are less likely to be involved in an accident. Another factor to consider is maintenance and continued upkeep.
Insurance providers also take into consideration a company drivers’ DOT safety record including safety rating, driver out-of-service violations, SafeStat Inspection and Selection scores, recorded accidents and results from previous compliance reviews. Lower rates are offered by insurers for a “satisfactory” DOT safety rating, below average out – of – service violation rates and a good inspection history.
Outside minimum DOT requirements, additional safety programs like driver hiring and qualification, safety training, driver supervision, vehicle maintenance and inspection, drug and alcohol testing for drivers, accident reporting and investigation and a full DOT compliance can lead to lower policy premiums.
For a trucking company the above mentioned circumstances can play a major role in determining insurance costs. Though others may apply, these are the ones a company can most try to control and are first looked at by insurers.