Many truckers look for the best value when price shopping for truck insurance, thought the actual cost has a lot to do with factors the truck driver controls. There are insurance requirements and coverage limits established by the federal government, so being able to meet these demands cost-effectively is crucial to a trucker’s operating expenses.
Five Crucial Factors
There are several key factors that determine the cost of coverage. All of these can be controlled by the insurance applicant.
- The USDOT authority. Operating through a lease with a company is cheaper than trying to work under your own authority. Your CAB report, or operating history and violations, also impacts costs.
- Government requirements. As mentioned, the government requirements a certain amount of coverage for those needing a federal filing.
- What you choose to haul will affect the cost, since some cargo carries greater transport risks.
- Operating radius. By increasing the radius of where you drive, you expose yourself to greater risks. Regional drivers pay more than local drivers.
- Operating a semi-truck carries higher insurance premiums than if you were using a pickup truck for the same haul. Newer vehicles carry more costly policies because of replacement costs.
As a driver, you can’t avoid paying for trucking insurance. You can, however, control the factors that influence price hikes or expensive premiums.