Georgia commercial truck insurance providers want fleet managers know about impending tire price increases. Due to the trade war between the US and China there is a 25% tariff on truck tires as of July, 2019. Add to that the projected increase on all rubber goods expected over the next few years, the cost of truck tires is going to skyrocket.
Commercial truck insurance companies in Georgia are concerned about the potential for reduced safety standards; as tire prices increase, freight companies may try to stretch out the life of their truck tires, sacrificing safety for profits.
Commercial Fleet Managers Should Be Proactive.
If you manage a fleet of commercial trucks you already know how tire prices can impact your bottom line. Purchasing just 2 new tires when it’s unexpected can put a painful dent in your Q3 profits. Compare that to years of increased insurance premiums though, and you’ll see value in the investment.
Stock up at the yard now if you can. Contact your usual sources and inquire about pre-tariff inventory. You might be able to get a good bulk deal. Remember, big rig tire prices are almost guaranteed to increase over the next several months. Buy as many as possible. Tires don’t go bad quickly, and it’s not like you won’t use them.
This is also a prime time to check out your current tire inventory. Have staff check the dates on tires, if you have anything a few years old in the shop make sure it gets used first. According to Tirerack.com tires that are 10 years old or more should just be disposed of. If you happen to have tires that don’t fit your fleet sitting in the garage, make some calls and sell them. You might even get more than you paid for them.
Don’t Skimp On Safety.
If you get the call through dispatch that a tire is looking iffy, go ahead and replace it today. Safety is key to your bottom line as well. Insurance claims caused by accidents WILL make your commercial truck insurance premiums go up. Avoid that “we’ll just get through one more load” mindset.
Educate Your Drivers.
Review your company’s protocol for safety inspections of their rigs and reporting tire problems. Remind them that 11 people die from commercial truck wrecksevery day. If it’s hard to get all your OTR drivers in one room put a memo in their next paystub.
The overall management of the fleet is your responsibility, contact us if you need a quote for commercial truck insurance. Don’t wait until the last minute to replace tires on your rigs, or it could really cost you.
