If you own a logistics company, it’s likely that you already face financial hardship due to the unquestionably high cost of purchasing trucks. But do you know what is even more expensive? Getting a truck insured!
It is understood that insurance rates vary from vehicle to vehicle, but trucks, which fall into the category of commercial heavy-duty vehicles, have a significantly higher difference in insurance rates than other vehicles. Moreover, its insurance premiums are continuously rising.
Therefore, it is imperative that every business owner, whose operations depend on the regular delivery of goods via trucks, monitors the costs associated with the trucks and has a comprehensive knowledge about the factors that can significantly increase the cost of commercial truck insurance.
Let’s talk about such factors to better understand why truck insurance is becoming more expensive.
Expensive Vehicle Expensive Insurance!
One of the reasons why truck insurances are higher than car insurance is because of their huge size, loaded features and pricey market rates. The trucks are only utilized commercially, and only those who own transportation companies buy them to suit their daily needs.
Additionally, a vehicle’s insured value is based on its current market worth, which is, incidentally, constantly increasing. Therefore, if your truck has an accident by chance, the insurance company will have to pay more, which will result in increased insurance premiums for your truck.
Trucks Can Cause Severe Damage!
The likelihood of a vehicle suffering serious damage increases with size. Trucks are large, heavily loaded vehicles that, in the event of an accident, could seriously harm both persons and property on the road due to their immense size and weight.
In such circumstances, the insurance provider will cover your personal liability as well as third-party property damage and loss, including their medical costs, property damage costs, and legal costs in the event that they sue you. Together, these factors raise the total insurance amount, which eventually raises the premium.
Trucks Can Be Damaged Off-Road!
You must have driven your truck on and off-road and dealt with the constant bumps if you are a truck driver. Although it could seem enjoyable to others, it can have a severe impact on your truck’s internal mechanisms. Additionally, if a transport company owner hires a novice driver, there is a greater likelihood that both the vehicle and the products being transported will sustain damage when off-roading.
In the end, the insurance provider pays for all of these damages in addition to the commodities, which again drives up the cost of your truck insurance overall.
We are all aware that trucks are large, heavily loaded, and prone to serious accidents. Your driver, however, is a further element that raises the risk associated with truck insurance. When you employ a novice driver and even if you verify all of their documentation, operating a truck is not a child’s play.
We have read and witnessed numerous times how a vicious truck driver was responsible for a fatal accident that claimed the lives of a family. As a result, the risk associated with truck insurance is increased, which pushes up the cost of truck insurance premiums.
Increasingly Susceptible To Road Hazards!
There are many reasons why trucks are more likely to experience traffic hazards. One, sometimes truck vehicles must take a diversion in order to avoid a lengthy traffic congestion, which frequently leads them to such paths they have no clear information about, such as the size of the road, the potholes, on-road objects, bridge height if passing through it, and more In such circumstances, there is a larger likelihood of truck damage since they either get stuck or are scrapped.
Second, because of its enormous size, there is a greater likelihood that it will sustain catastrophic damage if your truck driver is operating it at night and the visibility is poor.
Therefore, as a result of the insurance company having to carry a greater claimed insurance amount, the cost of your vehicle insurance increases.
Cover For Transported Goods!
Trucks are considered commercial vehicles, and their only function is to transport items from one location to another safely. Therefore, in the event that your truck is involved in an accident, it becomes a major responsibility for the insurance providers to pay for both the damaged transported items and the vehicle’s damage and driver’s bodily injuries, which adds up to a larger figure.
As a result, your vehicle insurance premium payment would need to be more.
That concludes the list of factors that make truck insurance more expensive nowadays.
Commercial vehicles must have the appropriate insurance coverage because you are aware of the hazards to human life and property damage. Because insuring a truck can be very expensive, we advise you to speak with various insurance providers to learn about their premium plans before making a final selection.
Some insurance providers could try to frighten you by listing all the issues connected to the truck, leading to a higher premium for you. But keep in mind that there are many options available; just because one insurance company is out of your reach doesn’t mean you can’t get a good deal somewhere else. So wait patiently and keep looking till you locate a great offer for yourself.
We hope that this blog helped you locate the solutions. Please feel free to ask any further questions in the comment section if you have any. We would be delighted to assist you!