Streetsmart insurance Blog
As an owner-operator, truck insurance may be one of your biggest operating expenses. Truck insurance policies cost thousands of dollars per year, and many business owners will have to pay their annual premiums in advance. If you are interested in lowering the cost of your truck insurance, you have to evaluate why truck insurance is more expensive than traditional auto insurance.
Why Is Truck Insurance So Expensive?
Truck insurance is expensive because the replacement cost, accident risk, and cargo value of a commercial truck is significantly higher than that of a non-commercial vehicle. A heavy duty truck can cost more than $100,000 to purchase and hauls cargo worth thousands of dollars across the country. If you get into an accident, the damage to your vehicle and other vehicles on the road will be more expensive to repair than damage caused by an accident with non-commercial vehicles. A commercial truck will also carry more merchandise than a non-commercial vehicle, which makes it more likely to be stolen.
Because trucks are a far greater risk to insure than non-commercial vehicles, they have higher rates of coverage and more expensive premiums. Federal law requires $750,000 in liability coverage for a commercial truck, and your damage coverage premium will run between 3-5 percent of your truck’s estimated value. Although FMCSA requires only $5,000 of cargo insurance per truck, you will most likely purchase a policy with enough coverage to properly protect your shipment.
How Can I Lower The Cost Of My Truck Insurance?
You can lower the cost of your truck insurance premium by:
Buying The Right Policy – Work with an insurance agency like StreetSmart Insurance to find the right amount of coverage for the best price. Don’t overinsure or underinsure your truck, and make insurance payments on time to protect your credit and lower your premium.
Choosing The Right Cargo – Be aware of what you are hauling. Merchandise such as computers, medication, and clothing is extremely attractive to thieves, so make sure you have the coverage you need and take extra precautions when driving through unfamiliar areas.
Being Careful Where You Park – Choose safe rest stops on the way to your destination. Avoid rest areas in bad neighborhoods where there are few vehicles and it is more likely that your goods will be stolen.
Driving Safely – Keep your truck insurance premium low by maintaining a clean driving record. Drive safely as you transport your cargo, and avoid accidents and tickets.
Street Smart Insurance is committed to providing affordable coverage.
Whether you are looking for your first truck insurance policy or you are shopping for a better price, our agents are ready to help.