Running a trucking company can be costly and stressful. It can also be rewarding and lucrative, as long as you know how to keep expenses down. Insurance is one of the most expensive and necessary things a trucking company needs for its operations. There are a few ways you can reduce the insurance cost on your trucks.

Screen Drivers Carefully

The better a driver’s record, the less their insurance will cost. This is true for personal cars and trucks. As you probably know, the Federal Motor Carriers Safety Administration requires trucking companies to screen applicants’ driving records in all states they have lived in the last three years. You must also verify previous employers for the last three years.

If a driver has an accident or is caught driving under the influence, you must keep a record of that on file along with any disciplinary action taken against the driver. Hiring the best drivers will keep the company, the client’s cargo, and the general public safe. It will also keep the cost of liability insurance down. 

Hire Seasoned Drivers

When you are starting a trucking company, it can be tempting to hire drivers right out of trucking school. New drivers work inexpensively and they don’t have as many bad habits as their more experienced counterparts. However, there are even more reasons to hire experienced drivers. 

More experienced drivers are less likely to have accidents. Older workers can get better insurance rates for their vehicles, and the same holds for commercial drivers. More experienced drivers will know how to make effective use of their time and will get their hauls where they are going as soon as possible.

Plan Your Routes

The route you take when you transport goods can be important in keeping your costs low. Some states charge more money for weight and distance than others. You can also save money on insurance if you plan your routes carefully.

According to https://simplexgroup.net/insurance-coverage/, if you travel through a state where it snows often, you are likely to pay higher premiums than you would if you travel through a state where the sun is always shining.

To that effect, when you travel through a mountainous region with a lot of winding roads, you may pay more than if you drive across the plains. A truck that travels through residential or city streets is likely to have higher insurance premiums than one that drives through rural areas.

Route planning is detailed work. It is important to hire a professional compliance and logistics company to help you with this task. A logistics professional can handle everything from the size of your load to the taxes you pay.

Buy New Trucks

Buying brand new 18-wheelers is easier said than done. However, investing in new trucks can save you money in the long run.

Your insurance payments will be less than they would with an older truck. A new truck is likely to have more safety features. The tires, brakes, and lights will be new, and that can make a huge difference in terms of safety. The trucks you buy do not have to be brand new, but they should have been manufactured in the last five or six years to get a good rate. 

If you can’t afford new trucks, at least update the parts frequently. If your drivers are traveling around with worn tires and an ancient battery, an insurance company is much less likely to pay the full cost of an accident.

If your brakes are worn down, an insurance adjuster may blame you if the brakes fail and cause a collision. Having an insurance claim denied can be devastating to a trucking company.

New trucks also serve to advertise your company. When potential clients see that trucks with your company name on them are shiny and new, they see that you are a prosperous company that makes good profits with lots of customers and is worth doing business with.

You need plenty of insurance to run a trucking company. It is best to go through one company for all of your insurance needs as they will often offer a bundle. Trucking insurance is expensive. If you take a few precautions and hire great drivers, you can keep the costs of insuring your fleet to a minimum.

Jane