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Why Is My Insurance So Expensive?


July 9, 2015

When most people go to buy trucking insurance, they expect the obvious questions:

How many trucks do you own? Where is your company domiciled? What commodities do you haul?  What is your travel radius?  Insurance companies use this information to formulate your premium.  But, what else goes into rating a commercial trucking policy?  What other factors are driving your rates?

The answer is….there are several other factors companies use when considering a risk.  Some examples are:

  • Loss Frequency and Severity
  • Safety Management Scores
  • Out-of-Service Percentages
  • Growth Plans
  • Coverages or lack there of
  • Multiple MC Numbers
  • Sharing of Units

Who knew so much went into formulating your insurance premium?  Now you are wondering how to keep your cost down.  Here are some hints that may help you do just that:

  1. Know who you are hiring.  We suggest that part of your hiring process should include obtaining a motor vehicle report on all drivers prior to making an offer of employment.    Drivers can obtain a copy of their MVR from the local Department of Motor Vehicles.  There are also many services out there that will run an MVR for you as well.
  2. Electronic Logs.These logs not only keep drivers within DOT guidelines, they also alert you when the device has been disconnected.
  3. Safety Management Meetings. Regular safety meetings will promote safe driving habits, the importance of vehicle maintenance, and most importantly open communication.  The benefit will be less accidents and violations to contend with and lower insurance premiums.
  4. Growth Plans. While growth is exciting, rapid growth could harm your business.  Rapid growth is sometimes frowned upon by the insurance companies.  Plan to grow methodically, be selective in who you hire, what commodities you will haul and even the age of the equipment you purchase or lease on.
  5. Talk to Your Commercial Insurance Agent. An agent who focuses on the trucking insurance industry is more likely to understand your needs.  Tell them about your operation and ask questions.  You are your own best source of information.  Your licensed agent can help you to make the right decisions regarding you insurance needs.

We hope this information is helpful to you.   Maybe this information has raised some questions.  Our licensed agents at Triumph Insurance Group will be glad to help you with whatever questions you may have!  Check out the website at or call at 800-411-7542 and our agents can get started on a quote for you!