Will FMCSA ELDTs Affect Rig Insurance Prices?
The transportation industry is evolving. And eventually, rig insurance may need to evolve, too.
In February 2022, the Federal Motor Carrier Safety Administration (FMCSA) set new Entry Level Driver Training requirements (ELDTs, not to be confused with new electric log device or ELD requirements.)
Fleet managers and owner-operators think these new courses should effect trucker insurance premiums. You are correct to believe that more training equals safer drivers, leading to lower insurance premiums for rig insurance. But the impact on your rig insurance premiums will be minor if they happen at all. And it will probably be several years before you feel any significant difference to your bottom line.
Today, we’ll explain two reasons why the new ELDTs won’t do much to lower truck insurance costs. Then, we’ll explore a few ways you can reduce your rig insurance premiums.
2 Reasons Why FMCSA ELDT Training Won’t Affect Your Premiums
1. ELDT Guidelines Aren’t Retroactive
If you had your CDL before February 7, 2022, you don’t need to participate in the new driver training programs. Most drivers sighed with relief when they heard that news because the new courses can cost up to $8,000, and there’s no guarantee that you’ll pass.
- From the truck insurance company’s perspective, that means all 3.6 million professional drivers remain in the same risk rating groups.
- They don’t get any additional training, so they won’t qualify for any extra discounts.
- New drivers will receive further training, but they’ll still be the minority on the road.
Before 2022, about 450,000 new CDLs were issued in an average year. But that number might decrease significantly, thanks to the costs of new driver training. We won’t know for a few years how that pans out.
In the future, new CDL drivers might find themselves a little cheaper to insure, but until you have lots of claims-free driving experience, the insurer will still consider you relatively high-risk. Altogether, rig insurance prices won’t be affected by new training requirements any time soon.
2. Other Claims-Related Costs Are Skyrocketing
You already know about inflation and supply chain struggles in 2022. Private vehicles are more costly to replace or repair. We’re not here to talk politics, but electric cars are expensive to repair.
In 2022, the average new private auto is at an all-time high, at about $47,000. And that’s not even considering the $100,000 pickup trucks on the road. It’s a double-whammy for big rig insurance companies who find themselves on the hook to replace expensive vehicles after a wreck.
So even if the ELDT requirements did inch premium prices a bit lower, the average claims costs are increasing so rapidly that fleet supervisors would never see any savings on their premiums.
But you still have options. There are ways to save money on big rig insurance.
Shop Around For Rig Insurance Every Year
One of the most effective ways to save on your rig insurance is to shop around every year or two. If you feel like your trucker insurance company is slowly inching up your pricing, “nickel and diming” you for more money every year, you’re not wrong. Many insurers will offer a low introductory price (to safe drivers) to lure in new business. As time goes on, they raise premium prices a little at a time. You’re not imagining it.
But you don’t need to accept those new high premiums. Contact an insurance agency that specializes in trucker insurance, like the team at JEB Insurance Services, LLC. We help drivers find the best rates in:
- South Carolina
- North Carolina
- And Tennessee
So contact us now at (888) 225-2258, or use our online form to get started. We understand the transportation industry and will work hard to bring you the best rig insurance policy for your needs, whether you’re a fleet supervisor or an owner-operator.