How to Lower Your Commercial Truck Insurance Cost


A commercial truck insurance policy covers your financial liabilities in the case of an accident, damage, or cargo loss of your truck. A commercial trucking insurance agency provides the right blend of liability, collision, and comprehensive coverage in a truck insurance policy. However, every insurance policy is not the same, so is their premium. The amount of coverage will decide how much you pay your truck’s insurance.

Factors That Influence Commercial Truck Insurance Costs

Your commercial truck insurance cost depends on several factors. So before finalizing your insurance policy, you should compare multiple quotes and the extent of coverage they provide to pay not more than you need to.

Generally, the truck with high chances of submitting claims will, of course, pay a higher premium. Other factors that influence commercial truck insurance cost include:

  • Specific state regulations
  • Years of business operation
  • The employment history of your drivers
  • Safety features in your trucks
  • History of previous insurance coverage
  • Age and experience of drivers
  • Location or driving routes
  • Type and weight of the cargo

How to Lower Your Commercial Truck Insurance Cost

In consideration of the above-mentioned factors, here are some things you can do to lower your commercial truck insurance cost:

1. Choose Your Commercial Trucks Carefully

The policy premium is affected by the kind of truck you have for your business. Therefore, before you buy, lease, or rent a commercial truck, it’s a good idea to look into its insurance rates. In short, high-risk trucks will attract a higher premium. Even if two trucking companies have the same insurance coverage, they may pay different rates. The difference can arise from the values assigned to individual risks.

2. Hire Experienced Drivers

Insurance companies are particularly interested in drivers’ years of driving experience when determining commercial truck insurance costs. Truck drivers with higher experience are better equipped to cope with inclement weather and other challenging working situations that might risk their safety.

Insurance companies consider trucks less at risk if you have experienced staff. As a result, they’ll be more willing to reduce your trucking insurance premiums. In addition, your drivers should have a minimum of two years of CDL experience to enjoy lower premiums.

3. Use New Trucks

New trucks, compared to old ones, are less likely to break down or have an equipment malfunction in a way that leads to damage to client goods or accidents. Insurance risk is determined by how likely you are to file a claim on a given policy – and old commercial vehicles increase your possibility of filing a claim. To be safe, stick to new trucks (10 years or less). Remember that routine maintenance and installation of new equipment might affect the truck’s premium cost.

4. Safe Driving and Avoiding Accidents

Accidents are common in the commercial trucking business, and irresponsible driving is the most common reason. According to predictions, commercial trucking accidents will be the sixth major cause of death in the United States by 2030. As a result, more claims are likely to be made. Commercial truck drivers can follow some safety tips to reduce risk while driving on the road.

When you file a claim, it is a cost to the insurer. Therefore, if you are very likely to file a claim due to a high frequency of accidents involving your commercial trucks, your premiums are likely to be higher. Maintaining a clean driving record will result in lower insurance costs.

5. Maintain Good Business’s Credit

Your business credit will determine whether your insurer can trust you with making payments. If you have a history of non-payment or late payments, you will be labeled high risk, which will increase your commercial truck insurance costs.

6. Hire Drivers with Clean Driving History

Take some time to go through your truck driver’s driving history and records. However, proceed with caution and avoid hiring them if you have even the slightest suspicions about their background.

The Federal Motor Carrier Safety Administration (FMCSA) has advocated a Pre-employment Screening Program, also known as PSP, which predicts a driver’s future performance based on their previous performance.

If you want to recruit the best in the industry to keep your insurance costs low, this is a great tool to use.

7. Pay Truck Insurance Premium on Time

One of the most common reasons for increased premium rates is late payments. If you do not pay your truck insurance premiums on time, the insurance provider may get concerned about premiums not being paid and flag you as a high-risk customer. The bigger the risk, the higher the insurance prices.

If your business can afford it, pay the entire premium up front and in advance. Making a yearly payment may save your total insurance cost and relieves you from the easy to forget monthly payments.

8. Split Up Your Routes

Some routes are more accident-prone than others. As a result, combining your working routes and altering them based on hauling distance, population density, weather, traffic volume, and other factors will affect the amount of insurance you pay. In this case, high-risk routes such as densely populated areas may attract higher insurance costs.

9. Type of Insurance Coverage You Need

With several types of commercial truck insurance coverage available; it can be overwhelming to choose which to keep and which to leave. However, choosing a cover that fits your needs perfectly is fundamental as it ensures that you pay only for what you need. There are several alternatives to choose from, including:

  • Primary Auto Liability: It covers bodily injury and property damage related to your commercial truck.
  • General Liability: Covers your trucking business if any claims result from normal business operations.
  • Motor Truck Cargo: Covers lost or stolen cargo
  • Uninsured motorist: Covers your truck if involved in an accident with an underinsured or uninsured driver.

An experienced trucking insurance agency can help you make a frugal decision.

10. Compare Truck Insurance Cost

Don’t just settle for one insurance quote; be proactive and look into other options. Make sure you’ve thoroughly examined options from different providers and policies. This will help you find a good trucking insurance company and a reasonable truck insurance policy.

11. Choose the Right Commercial Truck Insurance Company

An insurance company is like a partner who helps you with proactive claim assistance when adversity hits. Therefore, choosing the right insurance company is a vital part of your commercial truck insurance.

If you’re looking for a reputable commercial truck insurance company in Houston, Texas, you can contact us. We’ll help you choose the cover that suits your trucking business.

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  • Insuring Owner-Operators Protecting Your Trucking Business

    October 4, 2023 - 9:25 am

    […] Here are some things you can do tolower your insurance costs […]

  • Clare Martin

    October 10, 2023 - 9:33 am

    It was a helpful tip when you told us that late payments can end up increasing our insurance premiums, which is why we are advised to always pay them on time if we don’t want the provider to consider us a high-risk customer. I invested in a semi-truck for my new lumber business to help make deliveries to sites much easier and more convenient, so I need to get the vehicle insured soon. I’ll keep this in mind while I look for an insurance company in Hayward to contact about the insurance plan my semi-truck needs soon.

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