| Home | Free Articles for Your Site | Submit an Article | Advertise | Link to Us | Search | Contact Us |
This site is an archive of old articles


vertical line

How Truck Insurance Premiums Are Determined


Truck Insurance premiums are calculated according to a variety of factors. These factors are used to determine the financial risk, or probability of an accident. Many of the factors that are taken into consideration are things that the driver can have an influence on in order to decrease rates, such as accident history, while others are factors that the insured person has no control over, such as age.

Age of Driver

Statistically, younger drivers and very old drivers are more accident-prone. For this reason, drivers in higher risk age groups will have higher premiums. The preferred drivers are typically between the ages of 30 and 65.

Driving Experience

The more truck driving experience an operator has, the less their risk assessment will be. Experience with various equipment and weather conditions is inherent in the number of years that an operator has been driving similar types of trucks.

Employment History

The number of years that an operator has worked for different companies will be taken into consideration as an experience factor. The more familiar a particular driver is with specific routes and equipment, the less chance there is that an accident will occur.

Accident History

A driver who has been responsible for accidents in the past is prone to accidents in the future. For this reason, the fewer accidents and violations a driver has, the less their truck insurance premium will be.

Previous Coverage

Truck insurance providers may ask if you previously had insurance coverage. If you have been previously canceled for non-payment of premium or for underwriting reasons, the potential provider will want to know. If you have had truck insurance, the previous carrier can inform the new insurer of your loss history.

Years Operating in Name

As with newly employed drivers, a company newly operating in its name is more likely to have the added burdens of management development. As a company becomes more experienced managing its operation, including safety programs, drivers, adherence to regulations, the frequency of losses, etc. is also likely to decrease.

Driving Area

The routes a driver has can have an effect on premiums. This is determined by average road conditions and infrastructure, weather during different seasons, and so on.

Cargo

The type of cargo a driver carries will also affect their truck insurance premium. Cargo Insurance is based almost entirely on: cargo value, time sensitivity for delivery, potential for theft, etc.

Equipment Operated

The value, age, and condition of equipment operated are a determinant in truck insurance premiums. However, the age of a truck is often irrelevant as the condition of the truck is dependent on upkeep, as well as recently installed equipment.

Deductible

The deductible is the amount of damage or loss that the insured party is responsible for Typically, the greater the deductible the less the insurance premium will be.

DOT Safety Record

A record of an owner operators or companys DOT safety rating, violations, Safestat and Inspection and Selection (ISS-2) scores, etc. is routinely used to assist in determining the truck insurance rate.

Safety Features and Programs

Safety features for an insured truck, such as warning stickers, are beneficial for risk assessment. Safety programs for companies and safety trainings for drivers are also helpful.

Cover Me Insurance Agency is dedicated to providing competitive rates with great service for truck insurance, call us at 1-800-726-8376 or visit us at http://www.covermeinsurance.com

Submitted by:

Joe Trzepla

Joe Trzepla is considered an expert in the truck insurance industry and is currently employed at Cover Me Insurance - a commercial truck insurance agency.





ARTICLE CATEGORIES

Auto and Trucks
Business and Finance
Computers and Internet
Education
Family
Finances
Food and Drink
Gadgets and Gizmos
Health
Hobbies
Home Improvement
Humor
Kids and Teens
Legal
Marketing
Men
Music and Movies
Online Business
Parenting
Pets and Animals
Politics and Government
Recreation and Sports
Relationships
Religion and Faith
Self Improvement
Site Promotion
Travel and Leisure
Web Development
Women
Writing



http://www.articlesurfing.org/auto_and_trucks/how_truck_insurance_premiums_are_determined.html
Copyright © 1995-2016 Photius Coutsoukis (All Rights Reserved).