Factors Affecting Commercial Truck Insurance Rates

Commercial truck insurance has been deemed as a vital requirement for the success of a trucking company. Though, this type of insurance may take a very large slice of a company’s budget. For this reason, it is important for us to consider the factors that affect the price of this particular insurance policy.

Before anything else, let us identify the kinds of vehicles that may need commercial truck insurance. This particular motor vehicle insurance is especially underwritten to cover heavy motor vehicles such as trucks and as well as light pickup trucks, cars, vans, and SUVs that are being used in commercial operations.

Critical factors
One of the most significant factors insurers consider in coming with the rates of a particular commercial truck insurance coverage is the driving history of the vehicle’s operator or driver which includes its 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 accident. Clearly, the more accident a driver has, the higher the premiums to be paid by a trucking company.

Another factor that greatly affects the rate of this insurance coverage is the traffic violations one driver has. Similarly, the greater the number of violations, the higher the premiums can be.

The driver’s years of driving experience and his age also affects commercial truck insurance rates. Drivers who are quite young or quite old are believed to be much prone to accidents while operating a truck.

Other factors
Another factor that insurers consider is the truck’s value and condition. In usual cases, insurers will evaluate the truck’s condition before insuring it. Moreover, the trucks usual cargo to be delivered, the risks for theft and its annual mileage are also being taken into consideration in calculating commercial truck insurance costs.

However, all factors mentioned in this article may not be applicable in some states for each state has their insurance regulations including that of a commercial truck insurance.