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How Are Commercial Truck Insurance Premiums Calculated?
How commercial truck insurance premiums are determined depends on a large number of different contributing factors.
These contributing factors can vary from one insurer to another but the general consensus is that in order to properly determine the risk factors associated with a commercial truck fleet, the age of the drivers, all of the drivers experience and employment history as well as any previous commercial truck insurance the company has had.
Of course there are also many other factors associated with the vehicles themselves, but all in all, in order to determine commercial truck insurance premiums, the fleet as well as the drivers are taken in to account on a business wide scale and not just independently.
Statistically speaking, drivers between the ages of 35 and 65 years are far less likely to be involved in an accident than drivers outside this age band. To some extent, this may be beyond the control of the business, but it can still take steps to minimize it's exposure in this area.
Employing drivers who have more experience will obviously reduce the risk and should play a vital part in lowering any commercial truck insurance premiums. As well as experience, a drivers employment history will also be looked at closely to check on the history of any accidents the driver may of had with a previous employer.
Any insurance company will be interested in your businesses previous truck insurance history and if it's good, this may help to keep the cost of the premiums down. As with a passenger car, your history of long-term insurance will see costs being reduced. If you have no history, you could end up paying around double the cost.
The insurer will also take into account the driving area of the fleet which in most cases is the local city and surrounding metropolitan area as this will determine whether your fleet is operating in an area which is prone to more accidents. Different types of cargo also affect the coverage. If you are only hauling lumber as opposed to chemicals then you will obviously pay less in your commercial truck insurance premiums.
To determine your commercial truck insurance premium, your insurer will want to take into account information about your vehicles. This would be info about the age and maintenance history of each truck, added to that they will also want to see the company's DOT history, and last but not least they will take in to account the amount of deductible your company is willing to accept.
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