Big Question: why not just buy the cheapest commercial insurance you can for your trucking company?
Insurance is a business expense like any other; you want to keep the cost minimized but still make sure you put it in place for your business. With commercial insurance, it can sometimes feel they are all fairly similar and not much difference in what you get for what you pay.
Let’s look at the key things every trucking company should consider when trying to save money with their insurance and make sure the cost/benefit makes sense for them.
- Lowered limits may not cover the entire claim
For many trucking operations, the limit (or total amount the insurance company will pay out for a claim or multiple claims in a policy term) is something that can be adjusted. It can look very appealing to get a $750,000 policy to save some costs, but keep in mind that if any larger auto incident happens that costs more than that (and if there is any injury/death, medical costs or lawsuits, the cost can easily rise into the millions), you will be accountable for that additional cost.
- No agent for guidance
There is a growing trend in insurtech options to purchase insurance directly via online portals and websites and with no broker fees or charges. One consideration with these options is without an agent to offer advice through the process, a large number of people actually don’t have a good support experience. It may seem like the cheapest option, but without the support of an agent during the buying, financing, renewal and claims process, it can be confusing and many hours can be lost to trying to decipher what to do and how to do it.
- Higher deductibles can be more expensive in the end
A deductible reflects the amount that is paid out of pocket in a claim situation, so having a higher deductible amount can lower the premium on the policy. Sounds like an easy way to get cheaper insurance, right? Consider this; if you raise your deductible from $500 to $2500 to save some money over the year and you have one claim, you will pay an additional $2000. If you have multiple claims, an additional $2000/claim. Make sure the higher deductible makes financial sense before thinking the higher deductible will actually save you money over the year.
- No coverage for certain situations
When buying your insurance, there is an opportunity to choose what types of incidents it covers. The easiest example is getting just Liability vs Comp/Collision coverage. The liability coverage may satisfy the minimal requirement for your business, but when it comes down to covering damage costs and repairs to your vehicles to get you back on the road, that must be considered in the cost of when you are buying your coverage.
Any way it’s looked at, it all comes down to the old expression “You Get What You Pay For”.
At RSI Insurance Brokers, we don’t want you to have a “Cheap” experience and want to make sure you get the best value for your insurance and the best coverage for your situation. We have unique business relationships to provide a custom solution for your business so click here for a quote for services or call us direct at 1-800-828-5273 so we can help!