Post Date August 15, 2012 - Commercial truck insurance has been identified as a vitally important requirement which contributes to the success of any trucking company. Although this type of insurance coverage may take a very large slice of a company’s monthly cash flow, it’s vital a business like a commercial trucking company has the ability to transfer risk. For this reason, it is important for us to consider the factors that affect the price of this particular type insurance policy.
Commercial Truck Insurance is vital to transferring business risk
Before anything else, let us identify the types of commercial vehicles which need to purchase commercial truck insurance. This particular motor vehicle insurance is specifically underwritten to cover heavy weighted motor vehicles such as Tractors, Straight Trucks as well as light pickup trucks, cars, vans, and SUVs. One of the most significant factors commercial truck insurance companies consider when rating different types of commercial truck insurance coverage is the driving history of the vehicle’s operator or owner. This includes previous accident history. Whether the driver is at fault or not, insurers use this factor as to predict the probability that a driver might again be subjected to another at fault or not at fault accident. The more accidents or incidents a driver has experienced, the higher the premiums to be paid by a trucking company. Another factor which greatly affects the rates paid for insurance coverage is traffic violations. Common sense will tell you the greater the number of violations any driver has – the higher the premiums can be.
The driver’s years of driving experience and his/hers age also dictates commercial truck insurance rates. Drivers who are younger are believed to be much prone to accidents while operating a truck. The older more experienced driver will find their rates are more reasonable if not just cheaper. We can’t forget about the truck’s value and condition. When it comes to insuring the value of a commercial vehicle; age and the truck’s condition is very important.
Last but not least is cargo. When a commercial trucking company moves the property of others, the company must take financial responsibility for it’s value. This coverage is referred to as Inland Marine or cargo coverage. This type of commercial truck insurance is calculated by it’s risks for theft and its mileage it’s to be moved.
Michael E. Dortch
President & Managing Agent
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania 19446
(800) 807-0762 ext. 602