Why Commercial Truck Insurance Renewal Rates Can Rise

Commercial truck insurance may not be the most exciting topic out there, we get it. However, when it comes to your insurance renewal, it’s absolutely important that you pay attention because your rates could go up — especially if there have been any recent claims or changes in your driving history. By carefully checking your policy and venturing out to seek different options, you can potentially find ways to avoid any rate increases and ensure that you have the right coverage to protect yourself and your truck on the road.

So, even though it may not be on the list of your favorite things to do every year, taking the time to understand and manage your insurance can have a positive impact on your wallet and your peace of mind.

What Is The Commercial Truck Insurance Renewal Process?

Renewal is the process of continuing your insurance with your carrier. This happens when your policy is about to expire and you have to decide whether to continue with your current insurance or find a different one. It’s important not to let your coverage lapse, so you need to pay attention to your renewal date. This date is determined by when you first got your policy, which is usually for a year. Typically, a month or two before your renewal date is when you’ll receive a notice about the upcoming renewal.

Sometimes your rates might change — but not always. It is important to make sure you stay on top of things so you don’t accidentally go without coverage.

Why Might My Rates Change?

Your commercial truck insurance renewal might increase due to multiple factors:

Driving Record

Unsurprisingly, one of the key reasons why your renewal cost is higher is your driving record. If you, or any drivers listed on your policy, have driving violations or convictions within the past year, this is likely to lead to an increase in your renewal rate. Insurance companies view such drivers as high-risk, hence the hike in premiums. This can include small traffic offenses to major violations such as speeding or impaired driving. 

Industry Claims

Filing insurance claims for trucking accidents can lead to increased insurance rates across the board. Insurance carriers are more likely to raise your rates if you have a history of accidents since it makes you more prone to future accidents. This means that if you are constantly filing claims, your insurance premiums will be higher. The adjustments to the rates help cover the insurance carrier’s anticipated future payouts, which are higher in times of increased claims.

If you don’t want to be viewed as “high-risk”, here are a few things to keep in mind:

  • Regular maintenance can prevent unexpected breakdowns and accidents
  • Driver training can greatly reduce the chances of accidents
  • Implementing safety procedures, such as regular vehicle checks and restrictions on driving hours, can improve safety
  • The use of technology, such as GPS tracking and dash cameras, can help monitor driver behavior and reduce the risk of claims
  • Properly loading cargo can help to prevent accidents

By keeping these tips in mind, you will be able to create a plan that helps you improve safety at your trucking business — which will hopefully lead to you saving money on your truck insurance.

Insurance Rates

Unfortunately, your insurance provider does not have control over insurance rates. Given the large payouts that come from trucking accidents, insurance rates have been on the rise in the trucking industry as of late. Any changes in market conditions, such as an increase in repair costs or higher claims, can also lead to a rise in renewal rates. Remember, each commercial truck insurance provider will have its own tactic for calculating premiums.

Number of Drivers/Trucks

Another important factor that could cause an increase in your renewal cost relates to expanding your driver and vehicle lists. If you’ve added more drivers or vehicles to your policy in the past year, you may see a significant rise in your renewal price. Insurers consider additions to the driver or vehicle list as a higher risk, which leads to higher premiums.

These factors, and others, can all play a role in renewal costs, but there are steps to alleviate the cost of commercial truck insurance. By shopping around, negotiating, and investing in safety, you can give your trucking business a better chance at landing an insurance rate that doesn’t put a huge dent in your finances.

If you are searching for ways to save money on commercial truck insurance in Texas, J.E.B. Insurance Services, LLC is here to help. Connect with us and get a free insurance quote after discussing your unique needs. 

David Ott

David Ott