As an owner-operator truck driver, insurance is likely one of your biggest monthly expenses. Therefore, anything you can do to reduce your premium can go a long way in helping keep the cost of doing business more manageable. While there are many factors insurance companies consider when determining your truck insurance rates in Texas, there are things that you can do to lower your premium that you may not be aware of. Here is a look at a few simple things you can do to reduce your insurance premiums without sacrificing coverage.
Consider an Annual or Semi-Annual Payment
One way to save money on your semi-truck insurance would be to pay your premium annually or semi-annually. While it may seem like a daunting task to pay such a large amount up-front, insurers are often willing to provide significant discounts (anywhere from 10 to 20 percent) for these types of payments. In fact, many insurers charge interest on policies paid in monthly installments, so paying for the year upfront could save you a significant amount of money.
Increase Your Deductible
One simple way to lower your insurance premium would be to consider a higher deductible. While choosing a higher deductible will lower your insurance premiums significantly, you will have to bear more upfront costs in the event that you are in an accident. If you choose this option, it is important that you choose a deductible that you would realistically be able to pay without it causing a burden on your budget. While a lower premium may be attractive at first, you don’t want a deductible so high that it will strain your business should you get in an accident.
Plan Your Routes Wisely
Believe it or not, your trucking routes can also have an effect on your insurance costs, so taking the time to map out your route in advance could save you money. If you routinely drive through areas that are known to pose a greater risk to truckers, such as those with difficult weather patterns or dense populations, your insurer will see you as a greater risk. By avoiding these areas, your insurance provider may be inclined to lower your premium as you won’t be considered such a liability. Taking the time to plan alternate routes can save you in the long run.
Invest in Safety
Insurance companies are also often willing to give discounts to truckers who have invested in the latest safety features, as this reduces their liability. Choosing to stay up-to-date with the latest safety features can save you money in addition to keeping you safe on the road. Your insurance may also offer you a discount if you take certain driver safety courses as well.
Be Responsible About Maintenance
Properly maintaining your semi-truck is essential in order to ensure you stay compliant with DOT regulations as well as in keeping you safe on the road. However, making sure that you invest in regular maintenance for your semi-truck could also lower your premium as well. If you show your insurer proof of regular maintenance, they may give you a discount, as proper maintenance shows your responsibility and reduces their liability.
Extend Your Policy
Another way you may be able to save on your truck insurance would be to ask your provider if they offer multi-year policies. You may be able to lock in your rate by signing a two or three-year policy. While this won’t necessarily lower your premium, you won’t have to worry about your rates going up for a few years, allowing you to better predict and budget for your insurance costs.
Determining the cost of insuring a commercial trucking operation in Texas is complex, and there are many factors that an insurer will consider when calculating your rate. It is then essential that you partner with an insurance agent who will work with you to get you the most cost-effective policy.
Feel free to contact the team at J.E.B. Insurance Services, LLC to find out how we can help you secure the coverage you need at the best price possible.