4 Clever Ways for Trucking Companies to Lower their Commercial Insurance Costs
If you own a growing fleet of trucks, you are likely to notice that the cost of insuring them keeps rising. These rising costs can be disastrous for your bottom line especially in a competitive environment where having low operational costs is the difference between barely surviving and thriving. The good news is that by taking advantage of a few tips, you can significantly lower these costs. Here is what you should know about the different ways in which you can cut your commercial insurance costs.
Bundle your insurance protection
There is no need to take out covers with different companies for various aspects of your business. If your insurer offers property insurance and other forms of commercial insurance covers, it is always advisable that you get coverage from them. Ask them about bundling options and if they don’t have, look for an insurance agency that can provide you with this option. This is because most insurance companies offer significant discounts on these bundles simply because by bundling your cover, you are offering them more business.
Choose a higher deductible
Increasing your deductible is an easy way of lowering the amount of premiums that you end up paying on a monthly basis. It works mainly because by opting to pay a higher deductible, you are essentially decreasing the financial risk that the insurer is exposed to. Since insurance companies factor in risk when calculating the amount of premiums to be paid, this is an easy way to avoid paying higher premiums. Simply consult a commercial insurance broker about the potential discounts that you can get by opting for a higher deductible, and then choose an amount that you are most comfortable with.
Be selective when hiring
The key to reducing the cost of insuring your fleet lies in lowering risk. An easy way to do so is to have your vehicles driven by employees who have a good driving record. Listing such employees on the commercial policy will go a long way towards lowering the overall cost of insuring the fleet because, to the insurance agency, your company is a low-risk client. Therefore, before making hiring decisions, doing a quick search of the driving records of your potential employees will go a long way towards slashing the cost of insuring your vehicles.
Opt for a different payment method
If you can afford to cover the premiums for the whole year, opt to pay it upfront. A good insurance agent will be able to get you a good discount if you choose to pay a lump sum as opposed to those who pay on a month-to-month basis. Therefore, simply opting for a different payment plan can save you money.
As far as the means of payment, most companies seem to favor electronic bank transfers. They are a low-cost and convenient means of payment for parties involved. Therefore, in order to encourage their clients to use this method of payment, they tend to offer discounts for those who use electronic bank transfers. Confirm with an insurance agent if such a discount is a possibility, and if it is, change the mode of payment.
When you use these tips, in addition to requesting discounts for being claim-free, you will slowly cut back on the rate at which your premiums grow. Since these savings add up, they may play a significant role in giving your company the financial flexibility necessary to enable it to thrive in a competitive environment.
If your existing insurer does not offer you options for reducing your premiums, then you should definitely start shopping around for a new insurer. Inspiron Insurance Solutions is now offering insurance to Semi Trucking Companies and they are a perfect place to start your shopping-around journey.
Inspirion Insurance Solutions
8965 S Eastern Ave Ste 260, Las Vegas, NV 89123