If you want to control your commercial trucking insurance for your small fleet, hiring experienced drivers with clean driving records is one way to control your insurance costs. However, there are additional ways you can control your commercial truck insurance costs outside of the drivers you hire.
#1: Stay in Business
One of the best ways to lower your insurance costs is by simply staying in business, operating under the same name, and keeping up your operating authority.
The longer you stay in business under the same name, the less risky you will seem to insurance providers without changing or getting your operating authority revoked. For example, a well-established trucking operation is less risky to insure than a new trucking operation. In addition, each year that you stay in business will give you access to better insurance rates.
#2: Focus on a Clean DOT Safety Record
Next, you need to work to follow all of the Department of Transportation's rules with your fleet. You are going to want to ensure that you pass every inspection with flying colors.
In addition, you are going to want to ensure you avoid DOT violations and keep yourself in good standing with the DOT. This can be achieved by taking care of your trucks and following all rules when it comes to what you can haul and the weight of what you haul.
#3: Use Safety Programs
Use various safety programs to bring your rates down. For example, requiring your drivers to attend a formal driver safety training every year is one way of demonstrating to your insurance company that you take safety seriously. Another safety program you can employ is adding warning stickers to your trucks so that other drivers know how far away to stay from your vehicles.
You can also implement other company safety programs, such as fitness programs to keep your drivers fit and safe on the road. Finally, let your insurance provider know about all the safety features you have in place, and be sure to document them.
#4: Go for a Higher Deductible
Next, don't set your deductible too low. You are a trucking business and should have a nice cash flow built up. Evaluate your cash flow and determine what type of deductible you can afford to pay.
Choosing a higher deductible will allow you to lower your premium rates, which will reduce your monthly expenses. Set up a savings account with money just for the purpose of paying deductibles; then, continue to raise your deductible level over time to match your savings and enjoy overall lower operating costs.
You can control your small fleet commercial trucking costs by staying in business and keeping your operating authority valid, keeping a good record with the DOT, using company-wide safety programs, and choosing a higher deductible for your plan.