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The following items are some key factors affecting your chance of having a loss and, therefore, the premium you will pay.
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Driver Age As a general rule, younger drivers are involved in more accidents than older drivers and, as such, they pay more for insurance coverage. Younger drivers who have experience driving a tractor-trailer are still more likely to have a loss than a mature driver. The probability that a driver will have a loss decreases each year. However, after reaching a certain age, the likelihood of accidents again increases and as such, rates generally begin to rise. top Years Driving Experience The more experience drivers have driving similar equipment, the less likely they are to be involved in losses. As drivers gain experience with a specific type of equipment, they understand how it will react in certain conditions and be better able to avoid losses. More experienced drivers have learned more driving lessons, and are more likely to be familiar with operating vehicles in different types of terrain and seasons. Because of this, rates generally decrease with total years driving experience with the same type of truck. Changes to different equipment will increase the chances that the driver will be involved in a loss. For example, experience driving a straight truck does not translate to lower loss potential when the driver switches to a tractor-trailer. top Years Employed The number of years a driver is employed is another factor often taken into consideration when determining insurance premiums. In addition to the usual pressures of the job, a new driver is also faced with learning new routes and customers. These additional pressures felt by a new driver often result in a significantly higher accident rate. The more familiar a driver is with the particular routes, equipment, and commodities hauled, the less likely the driver is to be involved in a loss. Owner-Operators operating on contract will also be more familiar with the routes and customers than those operating exclusively with brokered loads. top Driving Record Your driving record plays a crucial role in determining premiums. It is the most basic evaluation of a driver and likely one of the first pieces of information reviewed. If you have moving violations on your record (driving your commercial auto or personal vehicle), you may pay more for your insurance. Statistics indicate drivers with violations usually have repeat violations which often lead to accidents. top Accidents Accidents have a direct result on your rate. If you have been involved in an accident you may pay more for your insurance. As with moving violations, statistical data indicates drivers with an accident on their record are more likely to be involved in another. top Years Operating in Name Insurers may ask if you previously had insurance coverage. If you have been previously cancelled for non-payment of premium or underwriting reasons, insurers want to know. If you have had insurance, the previous carrier can tell the new insurer about your loss history. As with newly employed drivers, an operation newly operating in its name is more likely to have the added burdens of management development associated with a new operation. As a company becomes more experienced managing its operation, including a safety program, drivers, and following of regulations, the frequency of losses is also likely to decrease. top Where You Drive Depending on where you haul, your vulnerability to different types of losses can vary greatly. This is based on a number of factors including the road infrastructure, level of congestion, legal environment and your percentage and experience of travel to a particular region. For example, you would be more likely to experience higher rates if you were regularly traveling into or through larger metropolitan areas than if you traveled only within smaller cities within the midwest. top What You Haul The purpose of cargo insurance is to protect the cargo owner's financial interests while their cargo is exposed to the possibility of damage while in transit. The type and value of cargo will affect your insurance premiums in addition to a number of other factors such as: the time sensitivity of the load, the potential for theft and the impact of changes in temperature. Some commodities are more susceptible to certain perils than others. This would be contemplated in the rate for cargo insurance. top Equipment Operated Today's modern tractor-trailers are filled with new, computerized features that make a trucker's life easier and safer. However, when involved in an accident or stolen, the price to repair or replace increases the cost of each claim. In addition, the maintenance and condition of equipment can contribute directly to the chances of being involved in a loss. As such, the value, age and condition of equipment is taken into consideration when determining your rate. top Deductibles The deductible is the amount of each claim you agree to pay. Your insurer will pay the difference between the claim amount and the deductible. For example, if your claim is $3,000 and your deductible is $1,000, your insurance company will pay $2,000. Generally raising your deductible will lower your premium. Insurance is best used to protect you against financial catastrophes, not smaller expenses you can afford to pay. Consider increasing your deductible to reduce your insurance premiums, if you can afford a higher deductible. top DOT Safety Record Insurance companies routinely look at DOT safety records to better understand how well a company complies with regulations. This includes looking at a company's:
Information about your company's DOT safety record is available on the Internet at: top Safety Program Most insurance companies consider compliance with DOT regulations a minimum requirement, and expect even small companies and owner-operators to meet those requirements. As fleets grow, insurance underwriters expect companies to have safety programs that go beyond the minimum DOT requirements. A small fleet with ten trucks, for example, should have at least a basic safety program that includes written policies and procedures that address key safety areas, such as:
In many cases, insurance companies may request detailed information about a company's safety program. They may also use safety specialists to conduct on-site evaluations of a company's safety program. How does your safety program measure up? Here's a quick guide to help you evaluate your safety program: top Next |
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