Trucking insurance premiums are often the third largest expense for trucking companies after buying or leasing trucks and paying for fuel. Even with a sound insurance policy from a reliable provider, premiums will continue to increase from year to year. For trucking companies these rising costs can be difficult to manage and it is important to maintain the lowest insurance rates possible in order keep from falling behind on other payments and funding new loads. Though there is no single quick fix to rising trucking insurance costs, there a variety of things trucking companies can do that will collectively make for big savings. If you’re looking to find the best deal for your insurance you’ll want to research into who can give you the best policy, check sites like this https://www.insurancequotes.com/auto to compare and find insurance quotes. There’s other types of insurance you should take into consideration if you’re running a trucking business, such as Professional Indemnity Insurance. This covers you in case you provide a wrongful service and the client sues you, so you don’t lose all of your money. There are many other insurance covers to look into as well, but if its Professional Indemnity Insurance UK you’re after then you can visit constructaquote.com. Follow these tips to keep your trucking insurance costs as low as possible:
- Drive safe – By practicing safe driving and avoiding accidents, speeding tickets, and other violations, drivers will save their trucking company on insurance costs.
- Maintain good credit – Many trucking insurance companies look at a business’s credit when determining their rates. Make sure to pay your bills on time and maintain good credit in order to reduce trucking insurance costs.
- Associate with larger carriers – Though some owner-operators may not want to give up any of their independence, aligning with a larger carrier can be a great way to deflect insurance costs away from you smaller trucking business.
- Only hire safe and experienced drivers – This is increasingly difficult to achieve because of the ongoing driver shortage but it is no less important. Sometimes waiting for the right driver to come along can make a big difference in the productivity of your trucking business as well as the rates from the insurance company.
- Write a safety policy – It might not seem that important but many trucking insurance providers look to see if the owner of trucking company has a written safety policy that they hold their employees to. Insurers often believe that safety on paper will translate into safety on the road.
Even after following these steps trucking insurance costs can drain the cash flow of a trucking company when added to other expenses. In order to maintain sufficient cash flow and keep trucks on the road, factor freight bills and receive immediate working capital. Freight factoring companies provide same day funding on freight bills so trucking companies can cover all of their expenses without ever being low on cash.
Learn more about starting a trucking business.