Five Factors Affecting Commercial Trucking Premiums

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.

  1. 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.
  2. Government requirements. As mentioned, the government requirements a certain amount of coverage for those needing a federal filing.
  3. What you choose to haul will affect the cost, since some cargo carries greater transport risks.
  4. Operating radius. By increasing the radius of where you drive, you expose yourself to greater risks. Regional drivers pay more than local drivers.
  5. 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.