How Are Commercial Truck Insurance Premiums Calculated?
There are many factors that contribute to the way your commercial truck insurance premium are decided.
These factors can be very different from one insurer to the next, but in general it is accepted that to properly determine the associated risk of insuring a commercial truck, the company must take into account the drivers age, their driving experience and their employment history.
Overall an insurance company will take into account the drivers details as well as the trucks details before determining a premium. They will review these details on a business wide scale, and not solely on an independent basis.
As far as the age of the driver goes, this is based on statistics in which they have shown that drivers under the age of 35 and over the age of 65 are more likely to be involved in an accident. While this factor may be out of the businesses control to some extent, that does not mean that a company cannot focus on this age group in regards to their drivers.
Employing drivers who have more experience will obviously reduce the risk and should play a vital part in lowering any commercial truck insurance premiums. As well as experience, a drivers employment history will also be looked at closely to check on the history of any accidents the driver may of had with a previous employer.
The insurer will want to know about any previous commercial truck insurance coverage as this will help reduce the costs of the premiums. Just like in a passenger car, a history of maintaining insurance on a vehicle means a reduction in costs where as in the case where there is not history you may even find your company paying almost double in the cost of premiums.
Your insurance company will also look at the area your fleet is operated in when determining your premiums. Rural and out of town areas have less traffic and less accidents, and suffer less crime, so you will pay less if you operate here rather than a big city. The type of cargo you cover will affect what you pay as well – there’s less risk with cargo such as lumber for instance than there is with chemicals.
To determine your commercial truck insurance premium, your insurer will want to take into account information about your vehicles. This would be info about the age and maintenance history of each truck, added to that they will also want to see the company’s DOT history, and last but not least they will take in to account the amount of deductible your company is willing to accept.
Tags: automotive, Finance, business, money