Top 5 Factors That Affect Your Commercial Truck Insurance Rates

Commercial Truck Insurance Rates

Your company’s insurance is one of the most essential items to have in place for your trucking business. Numerous variables, some within your control and others beyond your control, can have an ultimate impact on the cost of trucking insurance. Your company’s trucking insurance rates are in many cases influenced by these five factors.

These five factors contribute to the commercial truck insurance costs for a trucking company

Driving Records

Now, in order to calculate the contractor’s insurance premium rates the firm will pay, the driver’s employment history and driving history prove to be crucial.

Your company will save money if all drivers have clean records. DUI convictions, excessive speeding, and running stop signs are some major red flags. Consequently, you end up paying higher premiums if your drivers have these issues.

Truck drivers with prior trucking industry experience and those who have logged significant service time are viewed as more reliable workers since they have minimal employment gaps and are more likely to be skilled at handling equipment. Therefore, if your team upholds this type of record, it’s a win-win for you (due to lower premiums) and for them (because of employment stability).

Location of Operation

The amount of insurance coverage you have on your trucks depends on the state in which you conduct business and your choice of trucking insurance companies. In comparison to other states, some mandate more coverage than others. Additionally, the mileage your truck’s log can affect your charges. The premiums can increase in proportion to the daily mileage.

The routes that trucks take, in addition to the state you operate out of and the typical daily mileage of a truck, might affect insurance rates. If your trucks travel on roads that are known to be risky or dangerous, you might pay a higher premium. They may be considered unsafe or dangerous depending on the weather, population density, road conditions, and type of terrain you are traveling over (for example, mountains vs. plains regions).

Age and Condition of the Truck

One of the most important elements considered by insurance companies is the age of the vehicle. The risk and possible expense to insurance are increased by the higher value and more expensive cost of replacing or repairing newer automobiles. As a result, firms using newer vehicles may pay more for insurance than those using older vehicles.

However, due to the increased chance of breakdowns, maintenance problems, and accidents, older vehicles may also have higher insurance rates. Vehicle mechanical systems and safety features may deteriorate over time, which raises the risk of accidents or malfunctions.

Businesses can invest in more recent vehicles with more advanced safety features or, better yet, perform routine maintenance and repairs to lessen the effect of vehicle age and condition on insurance costs. This will help you to obtain a better commercial truck insurance policy.

History of Previous Coverage

If you’ve ever had a policy, the history of payments for that policy, and if it was canceled will all be thoroughly investigated by your insurance company. In case there was a cancellation, they would also look into the reasons.

The insurance provider may charge you a higher premium if the reason is your inability to pay on time.

A poor credit score can also affect your premium cost in addition to the above. Pay your monthly bills on time and credit card debt if you want to raise your credit score and, as a result, reduce your chances of receiving a high premium. Additionally, you can immediately bring the account current. 

Maintenance and Out of Service

Keeping your vehicles in good condition may save downtime, increase response time in case of accidents, and avoid DOT fines. Truck maintenance plans that are timely and enhanced will benefit trucking operations’ truck insurance rates and reduce instances of liability insurance.


Even with extensive training and safety measures, accidents can still occur when driving. In the event of an unfortunate event, the correct commercial insurance package can shield you and your company from obligations. You’ll only obtain the coverage you require with VL 17 Insurance Agency LLC. We take precautions to reduce these risks since we are aware of how these and numerous other factors may affect your insurance premiums. Our goal is to assist your business in safeguarding its financial position and ensuring that it has the insurance coverage required to manage your trucks in a safe and efficient manner.

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