How to Reduce Your Commercial Truck Insurance Premiums

Reduce your Truck Insurance Premium

Last Modified: March 8, 2024

Reducing your truck insurance premium is difficult in the current hard market.

Here are some tips to help you maintain solid coverage while tweaking your commercial insurance premium.

1.  Fix your Credit Score

Your Credit Score is not the same as your Insurance Credit Score.

Insurance companies insist they don’t use your Credit Score, they use your Insurance Credit Score.

What’s the difference?

Technically your Credit Score is based on your ability to repay your debts.

That number is found on your Credit Report.

 

Your Insurance Credit Score is your Credit Report Info AND your accident and insurance claim history combined.

 

Insurance companies believe that drivers with poor Credit Reports are higher driving risks.

So they base their insurance credit scoring on other policyholders with similar credit habits.

This is a hotly debated topic, but it’s important to know that it is embraced by all insurance companies underwriting commercial trucking risks.

That’s the credit portion.

 

The other portion of your Insurance Credit Score is based on your accident and insurance claim history.

There’s really nothing you can do about the past.

That’s why the number one thing you can do to improve your Insurance Credit Score is to fix your credit and improve your credit report score.

Fix your credit
Fix your credit

 

 

Truck Insurance Companies like clients with long established lines of credit.

That’s why they love the 35-40 year old driver.

If you’re young, there’s not much you can do about that other than prepare now for your future.

 

But two points Truck Insurance Companies also look for are numerous open accounts in good standing or responsible use of current credit.

Focus as much as you can on paying off debt now.

Avoid applications for new credit or maxing out your cards.

 

It’s best to know that if you are in collections or even have numerous past due payments anywhere

that it will be difficult for you to reduce your truck insurance premium.

 

2.  Pay promptly to lower your Commercial Truck Insurance premium

Especially if you wish to stay with your current Truck Insurance Company, pay your premium before it’s due.

While the computers generate your reminder notices, don’t wait for that prompt.

If you have trouble remembering when your bill is due, set yourself up on EFT or automatic withdrawals.

Even better, if you can possibly swing it pay your premium in full.  That goes a long way in proving you’re a solid risk.

Over time, the less activity you generate as a client the lower your premium will go.

Both EFT automatic withdrawals of premium and Paid in Full policies typically include 10-15% in savings right off  the bat.

Automatic Withdrawal of Premium Savings
Automatic Withdrawal of Premium Savings

 

 

3.  Avoid multiple changes to your Commercial Truck Insurance Policy

Insurance companies in all lines look for financial and operational stability.

Multiple changes to your coverage will throw off their algorythm of how you were rated when your Truck Insurance policy began.

Many insurance companies allow you to make coverage changes midterm, but in most cases it’s not to your advantage to do so.

The result will be higher premiums down the road when their algorithm realigns to new risk parameters.

 

Obviously if you hire a new driver who didn’t work out, the changes to the policy must be made.

But if you are repeatedly churning out one driver after another it appears as if your company is not stable.

The same applies to your Motor Truck Cargo Insurance.

Multiple changes in the type of Cargo you’re hauling can give the appearance of an unsettled customer base with possible alternate radius requests.

Financial Stability
Financial Stability Key to Good Insurance Credit Score

4.  Knowing the Actual Stated Amount can lower your Commercial Truck Insurance Premium

Commercial Trucking Insurance including HotShot Truck Insurance and Commercial Van Insurance all base their Physical Damage rates on Stated Amount.

Stated Amount is the value you give your truck insurance broker when you start your policy.

That Stated Amount is the number your insurance pays UP to for a Comp or Collision claim.

Stated Amount is often confused with Agreed Amount which pays that exact number out at claim time.

So if you have chosen $50,000 for your Stated Amount, but the actual value of your vehicle at the time of loss is $45,000…

…You get $45,000.

So don’t overvalue your commercial truck when you chose your Stated Amount.

Review the actual value of your truck today and call your truck insurance broker to lower your Stated Amount.

Even if you are midterm in your policy, it’s a stable business practice change your insurance provider will reward.

Know the Actual Value of your Commercial Truck
Know the actual value of your commercial truck

5.  Share your Driving Data with your Truck Insurance Provider

Most Truck Insurance Companies have some sort of discount for access to your driving data.

If you consider yourself a driving pro, this is a good option for you.

Understand going in that if you’re not a driving pro, then your premium could go up next year.

The most well known plan is Progressive’s Smart Haul simply because it’s heavily advertised.

We’ve seen savings vary between $1,179 and $984 per year for our Owner Operator CIS clients insured by Progressive Commercial.

Adding data sharing to your commercial truck insurance policy is a midterm change insurance companies want to see.

To qualify for their program you will need an ELD, a DOT number and Primary Commercial Auto Liability on your For Hire Truck Policy.

Work with a professional Truck Insurance Broker who can help you get the most savings on ELD programs and other discounts.

You can learn more here about Progressive’s Smart Haul program.

 

Smaller units like Cargo Vans and Sprinters with no DOT qualify for Progressive’s Snapshot Program.

Progressive Snapshot Program for Commercial Van Insurance
Progressive Snapshot Program for Commercial Van Insurance

 

 

 

 

 

 

 

We are experts at helping our Owner Operators reduce their truck insurance premiums.

Call us for more tips and questions 330-864-1511.

We want to help you stay on the road and succeed!

Big Savings with CIS
Big Savings with CIS

 

 

 

 

Authors

  • 2002 Founder and CEO of Commercial Insurance Solutions, Inc., Shelly Benisch specializes in providing Commercial Truck Insurance for owner operators and small motor carriers. Both CIS and TRS certified, She also writes a free educational trucking insurance advice blog dedicated to the little guy.

  • Executive Director of Commercial Insurance Solutions, Inc., Christina Cummings leads her team in providing the best Truck Insurance with the best rates for Owner Operators and small Motor Carriers. Christina is TRS certified as a Transportation Risk Specialist. She is your "go to" person at CIS with questions, tips and networking opportunities in our trucking and expediting community.

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