According to the American Transportation Research Institute, the overall cost of operating a truck did not increase drastically in 2024. However, one significant increase was in insurance premiums, which went up an average of 12.5%. Therefore, trucking company owners aiming to lower operating and expense costs should focus on these insurance expenditures.
Insurance is legally required for trucking businesses to operate, so lowering premiums cannot come at the expense of mandated coverage. This article details how trucking businesses in Illinois and elsewhere can streamline their monthly insurance premiums while protecting their drivers and vehicles from costly accidents.
1. Review the Deductible
A trucking business’s current policy may contain clear opportunities for savings without making sweeping coverage changes. The business’s coverage needs may have changed, resulting in unneeded extra coverage, new benefits, or new requirements to maintain compliance. Even if the business has grown, coverage can be adjusted without sacrificing protection.
One of the main ways that businesses save money on insurance premiums is by raising the deductible. The deductible, which is the amount that businesses pay out-of-pocket before the insurer begins paying out their claims, partly determines the business’s monthly premiums. The higher the deductible, the lower the premiums tend to be, since the insurer knows that businesses will pay more upfront in the event of an accident.
For low-risk businesses or those with a high risk tolerance, a high deductible can lead to significant savings on monthly premiums. Trucking businesses should review their current deductible and reassess their risk tolerance based on their current operations.
2. Upgrade Safety Procedures
Insurance companies reward trucking businesses for maintaining safe driving records and updated safety training workflows. These efforts signal to their adjusters that the business is a safe investment, which can lead to lower premiums for the same coverage.
Trucking businesses should maintain clean driving records for many reasons, but one of the most significant advantages is that a clean record for 3-5 years often has a positive impact on premiums. This time interval is significant since it’s the period that insurance adjusters tend to pull when reviewing a company’s driving history. Accidents or violations within that timeframe elevate premiums.
In addition to maintaining a clean record, trucking companies can increase their investment in driver safety training. Since better training often means fewer accident claims, many insurers lower premiums in response to well-documented training, which saves businesses money on their coverage.
3. Maintain Truck Condition
Trucks in poor condition are more prone to accidents. Neglecting maintenance leads many companies to disrupt their clean records with incidents that reflect poorly on their insurance adjustments. With regular maintenance, trucking companies can make sure their trucks comply with road safety rules and insurance guidelines while keeping their drivers safe.
Companies can take these improvements further with additional investments in vehicle safety features. GPS trackers, collision sensors, security cameras, and more can provide insurance adjusters with additional reasons to lower a business’s premiums.
4. Consider a Policy Bundle
Trucking insurance can often be bundled with other policies, such as personal auto coverage, to lower the overall premium. For large trucking businesses, a fleet of vehicles can sometimes be insured on a single policy, which also leads to discounts.
In addition to saving on premiums, trucking companies also save on administration costs by bundling, since their insurance management workflow will be less complicated. With one policy instead of several, companies will have fewer customer service contacts, fewer agents, and more time for important management tasks.
5. Increase Liability Coverage
Liability coverage is a policy that pays for property damage or injuries caused by accidents involving a company’s drivers. Increasing liability coverage to lower insurance costs may seem contradictory, but insurers follow a clear logic. When businesses are financially prepared to pay for more coverage, they demonstrate a greater sense of responsibility. Insurers often respond by lowering their premiums.
6. Consider Multiple Providers
Many trucking companies remain with a single provider despite elevated rates, simply to avoid the administrative tasks involved with switching. However, the savings available at another insurance provider could be significant. Reaching out for a second opinion and prioritizing local business insurance providers could lead to lower premiums for the same or better coverage.
Contact Pro Insurance Group to Lower Trucking Insurance Premiums Without Sacrificing Coverage
Trucking businesses require comprehensive insurance to protect their drivers and vehicles from costly accidents. At Pro Insurance Group, we aim to customize insurance policies for each business’s specific needs. Our experienced agents compare coverages to the business’s current policy, prepare quick quotes, and shop policies within the business’s budgetary goals.
Contact our team today to learn how our agents can help lower your trucking business’s insurance premiums while maintaining the coverage you need to continue protecting your drivers and operating status in Illinois.