High Insurance Rates and How You Can Avoid Them

June 30, 2020
High Insurance Rates and How You Can Avoid Them
Photo by PRA

High insurance rates bog down plenty of trucking companies. But yours doesn’t need to be one of them. With the right technology and statistics, you can find the lowest insurance rate available.

Insurance companies determine rates based on several factors. Things like where you travel and what you haul will affect your rates. If your drivers rack up a lot of miles in states with high insurance settlements, the insurance company is going to want to charge you more. A “nuclear verdict” is basically a case in which a jury awarded a penalty exceeding $10 million. There are other intricacies involved. But this is the main definition we’ll be working with. States that often award nuclear verdicts are financial risks for insurance companies. Thus, they’ll want the drivers they insure to steer clear of those areas.

So maybe you can’t really change your routes. Customers are customers and the country needs goods all over. But there are steps you can take to mitigate some of the other risk factors your insurance company will look at.

Safety Tech Helps Alleviate High Insurance Rates

Show insurance companies and the public that your company is doing everything in its power to keep the public safe. Safety procedures should come from the top down. Document all of your training materials. Make sure to preserve and back up any camera footage you have of accidents. If a driver is involved in an accident, defense attorneys will dig to try to find any evidence that might suggest your company does not take safety seriously.

Insurance companies do consider in-cab cameras when looking at reduced rates. Outward-facing cameras catch the behavior of those on the road. Inward-facing cameras can show that a driver did all that they could when faced with an impossible situation.

Additional safety tech is new on the market but may help to reduce cost as time goes on. Sensors that alert drivers when they are unfocused or falling asleep can help prevent accidents. Truck platooning may also significantly cut down on safety risks.

Technology can be expensive. But collisions can be expensive and destructive. Staying on top of new trends and using all your resources is the best way to avoid high insurance premiums. Don’t be sorry. Be prepared.

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