How Truck Insurance Premiums Are Determined

Truck Insurance premiums are calculated according toYears Operating in Name
a variety of factors. These factors are used toAs with newly employed drivers, a company newly
determine the financial risk, or probability of anoperating in its name is more likely to have the added
accident. Many of the factors that are taken intoburdens of management development. As a company
consideration are things that the driver can have anbecomes more experienced managing its operation,
influence on in order to decrease rates, such asincluding safety programs, drivers, adherence to
accident history, while others are factors that theregulations, the frequency of losses, etc. is also likely
insured person has no control over, such as age.to decrease.
Age of DriverDriving Area
Statistically, younger drivers and very old drivers areThe routes a driver has can have an effect on
more accident-prone. For this reason, drivers in higherpremiums. This is determined by average road
risk age groups will have higher premiums. Theconditions and infrastructure, weather during different
preferred drivers are typically between the ages ofseasons, and so on.
30 and 65.Cargo
Driving ExperienceThe type of cargo a driver carries will also affect
The more truck driving experience an operator has,their truck insurance premium. Cargo Insurance is
the less their risk assessment will be. Experience withbased almost entirely on: cargo value, time sensitivity
various equipment and weather conditions is inherentfor delivery, potential for theft, etc.
in the number of years that an operator has beenEquipment Operated
driving similar types of trucks.The value, age, and condition of equipment operated
Employment Historyare a determinant in truck insurance premiums.
The number of years that an operator has workedHowever, the age of a truck is often irrelevant as
for different companies will be taken intothe condition of the truck is dependent on upkeep,
consideration as an experience factor. The moreas well as recently installed equipment.
familiar a particular driver is with specific routes andDeductible
equipment, the less chance there is that an accidentThe deductible is the amount of damage or loss that
will occur.the insured party is responsible for Typically, the
Accident Historygreater the deductible the less the insurance premium
A driver who has been responsible for accidents inwill be.
the past is prone to accidents in the future. For thisDOT Safety Record
reason, the fewer accidents and violations a driverA record of an owner operators or companys DOT
has, the less their truck insurance premium will be.safety rating, violations, Safestat and Inspection and
Previous CoverageSelection (ISS-2) scores, etc. is routinely used to
Truck insurance providers may ask if you previouslyassist in determining the truck insurance rate.
had insurance coverage. If you have been previouslySafety Features and Programs
canceled for non-payment of premium or forSafety features for an insured truck, such as warning
underwriting reasons, the potential provider will wantstickers, are beneficial for risk assessment. Safety
to know. If you have had truck insurance, theprograms for companies and safety trainings for
previous carrier can inform the new insurer of yourdrivers are also helpful.
loss history.