Semi truck insurance cost can be costlier than the average cost of common auto insurance. Well, it stands to reason since semi trucks face more risks than auto insurance. For instance, semi trucks spend most of their time on the roads. Roads, on the other hands, are the source of risks. Accident happens without knowing where and when. Not to mention, the semi trucks haul hazardous materials that trigger from the insurance cost skyrocketing.
We cannot get the specific amount of insurance cost for semi trucks since each of you possibly gets different cost depending on several factors.
The implication is that there is no such two exactly the same insurance policy. Learning the triggering factors helps you to reduce the cost. Now, we are going to focus on those factors and what to do the lower cost.
What are the Triggering Factors ?
There are a lot of triggers, but the major factor is the coverage choice. Indeed, we have to know the amount of coverage we need. Medical insurance is a must added into our policy, but the better coverage we have, the higher the semi truck insurance cost will be.
Well, we have a choice to just choose the least amount of coverage, but of course, you are still at risk when your semi truck becomes damaged due to an accident or theft.
Talking about the types of coverage, there are several types that you have to include. We cannot just rely on one type of coverage only. Two or three types are recommended. The must added coverage includes liability insurance, physical damage insurance and medical payment insurance.
If you think that you need some other types of coverage, make sure you assess your financial stability since it affects the semi truck insurance cost. In case your semi truck is leased or financed, you had better ask to your motor carrier for the coverage that you may need.
The amount of coverage needs to be wisely determined. Even if you carry more than one or two types, they will be useless when it is not enough to cover the damage or medical expense.
What you have to take into account on how much you can afford to pay out of pocket in case you get involved in an accident where you are at fault. Only then, your semi truck insurance cost will not be a huge burden for your business.
Managing Your Insurance Cost
Here, we only talk about coverage. Actually, there are other factors that trigger your insurance cost. Some of them are driving history, years of business and previous claims. Each insurance company has different way to access your cost, but the primary factor is coverage and its amount.
Now, since we have to determine sufficient amount of coverage, it becomes very expensive. The great way to manage your semi truck insurance cost is by adding your deductible. It is the amount of money that you have to pay out prior to the insurance policy works.
Its amount ranges between $500 and $2,000. With deductible, you are going to pay for the repair cost until the cost reaches your deductible. The rest will be paid by your insurance company.
Having more than one semi truck has its own benefit. You can insure them in one company, if applicable. Sometimes, you can get discounts. In order to maintain the cost as low as possible, make sure you hire drivers with good driving records. Experience is important as well, but those with good driving background helps a lot in keeping the insurance cost low.
It may not a simple task to determine coverage and its amount. Considerations are needed. Some people prefer hiring insurance agency to help them. However, if you think you can do all of these things on your own, you can manage your semi truck insurance cost.