Want to know how to lower your trucking insurance premiums in 2025?
Having a great driving record is a no brainer, but there’s a lot more to it than that!
Let’s break it down.
Top 10 Tips to Reduce Trucking Insurance Costs
1. Maintain a Good Credit Score to Save Money
Your credit score plays a big role in affordable trucking insurance rates. Insurance companies often view businesses with better credit as less risky, which can lead to lower premiums. There are several free credit card search companies where you can monitor and improve your credit score. When you see your score improve, it’s time to start searching for lower premiums with commercial truck insurance online quotes and talking with transportation insurance experts.
2. Pay Your Insurance Bill on Time to reach Best Tier
Late payments can mess with your chances of getting lower premiums in the future. Insurance companies love customers who pay on time, and setting up automatic payments or paying in full upfront could save you up to 15%. Plus, paying on time means no penalties and lower rates when it’s time to renew. Behind the scenes, there are different “tiers” in insurance algorithms that group you with others based on your payment history and insurance credit score. The goal? Get in that top tier!
3. Keep Your DOT Authority Active for Lower Rates
If rising fuel costs or other challenges are getting you down, don’t rush to cancel your DOT authority. Shutting it off and restarting later can lead to higher insurance rates or fewer options. If money’s tight, consider teaming up with a factoring company to keep your cash flow steady. Insurers like GEICO may view turning your authority on and off as a red flag, so it’s worth avoiding if you can.
4. Avoid Changing Coverage Midterm to Stabilize Costs
Thinking about changing your coverage or limits midterm to save some cash? It might seem easy to tweak your Progressive policy, but here’s the deal—at renewal, they could see those changes as inconsistent and bump up your premiums. The best move? Keep your coverage steady to build a solid, reliable history.
5. Regularly Update Your Truck’s Value for Savings
Make sure your truck’s physical damage coverage matches what it’s actually worth. With used truck prices all over the place, keeping up with your truck’s stated amount helps you avoid overpaying for insurance or being underinsured if something happens. Progressive’s Financed Value Coverage has your back if you owe more on your loan than the truck’s worth.
6. Consider Your Actual Radius to Reduce your Premium
A lot of new Motor Carriers and Owner Operators go for Unlimited Radius right off the bat, but the truth is, you might only be driving within 500 miles on your regular routes. Long-haul trips come with more risks—unfamiliar roads, higher chances of accidents, more time behind the wheel. If you’re not driving coast to coast, grab a map, figure out your actual radius, and lock that in before starting your policy. You might be surprised at how much you can save on your trucking insurance premium!
7. Shop Rates Before Big Changes to Plan Costs
Thinking about getting your own DOT authority, hiring drivers, or switching up your vehicle—maybe from a cargo van to a hot shot or box truck or semi? Get your insurance quotes first! Premiums vary a ton with these changes, and no one likes surprise costs. Companies like GEICO and Progressive use your DOT number and MCS-150 to see changes, so it’s smart to crunch the numbers before making any big moves that could raise your rates. Getting commercial truck insurance quotes online is super convenient, but when you’re considering big changes in your life then a quick call with a transportation insurance expert is what you need to do. At CIS we work as your advocate to make sure you’re not making the wrong step that could really affect your overhead!
8. Be Aware of State-Specific Costs for Budgeting
Some states naturally have higher trucking insurance premiums because of things like personal injury protection (PIP) requirements and higher litigation costs. Places like New Jersey, California, and Louisiana usually top the charts for the most expensive rates. If you’re running operations in these areas, it’s definitely something to budget for. On the flip side, GEICO and Progressive seem to be fans of states like Ohio, Indiana, Pennsylvania, South Carolina…and surprisingly…Florida these days!
9. Secure a Safe Garaging Location to Lower Rates
Where you park your truck matters. Progressive and GEICO look at your zip code to figure out if it’s a safe spot for your vehicle. Unfortunately, telling them your truck’s never parked because it’s always on the road doesn’t work… trust us, we’ve tried! At CIS, we’ll help you find the best truck insurance at an affordable price, no matter where you are.
10. Utilize Data and ELD Monitoring for Discounts
Insurance underwriters rely on data to assess risk. Maintain a professional online presence with a custom website and branded email, and monitor your SMS scores through the FMCSA Company Snapshot. Additionally, many insurers offer discounts for ELD (Electronic Logging Device) monitoring plans. Programs like Progressive SmartHaul can save you 5% to 18%, with average yearly savings of $1,384.
Save Money on Trucking Insurance Today
Lowering your trucking insurance premiums takes effort, but these tips can lead to significant savings over time. From maintaining good credit to leveraging ELD discounts, these strategies will help you reduce costs while keeping your business protected.
Looking for more ways to save? Check out our related blogs:
Proven Tips to Save Money on New Venture Motor Carrier Insurance
- How to Get a Motor Carrier Authority for a Van
- Commercial Truck Insurance Basics