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How To Keep a Lid on Insurance Premiums?
The revenue generated by the trucking industry in the US alone was over $700 million (as per data released in 2020). However, margins came under pressure because of price hikes on petrol, insurance premiums, etc.
Insurance is one of the trucking sector’s most tricky yet essential aspects. The trucking insurance premium model is assembled on a lot of risk factors concerning the safety of the vehicle, driver, shipment, and people on the road. Due to all these factors, insurance premiums are on the rise, year after year. In fact, a study documented a 47% increment in premium costs per mile over the past ten years.
This begs the question – Is there a plausible way to curb the insurance costs?
There most certainly are some ways in which truckers or trucking companies can deal with this inflated value of insurance premiums. But first, let’s get into the nitty-gritty of the impact of insurance costs on trucking firms.
Insurance Costs and How It Impacts the Trucking Firms
Here is a brief account of insurance costs, what determines this cost, and how it can impact the fleet managers.
The insurance prices are determined based on a variety of factors; these include but are not limited to size, type, and the objective of using the fleet. For example, delivery fleets have a higher insurance premium because of the goods that need to be delivered without damage. In essence, the premium is usually based on the records provided by the company and its operational system.
Trucking firms must be proactive in hunting for the right insurance because large fleets have hefty premiums. To that end, the ideal way to buy insurance is by clubbing it for all of the vehicles in the fleet.
Further, many extensions are provided over the existing fleet insurance, which can help scale coverage. For example, when the weather conditions are harsh, disaster damage can be added as an optional coverage on the already running insurance plan.
How To Keep the Premiums Down?
Installing Better Technology
With trackers, door sensors, and other tech-savvy products, fleet management has become easy and reliable. Better technology is usually directly correlated to lower premiums because most of them promote safe driving, better transparency, improved control and management, and more robust security of the goods being transported. Today, these technologies offer safe driving, meaning fleets have a fair chance of saving a cut on the premiums.
Vehicle Maintenance and Safety
Fleet owners should better understand the requirements of the vehicle. A vehicle’s maintenance and safety largely depend on its repair work. When on point, this can reduce the risk of landing in a situation of incurring high repair costs.
Apart from this, the performance of the fleet should be checked rigorously. Safety measures should also be assessed in light of legalities, policies, and procedures. Thus as a driver or a fleet owner, one should be keen on checking the vehicle’s performance regularly so as to avoid any sudden expenses.
Better Recruitment Process / Background Check
Driver shortage and retention are known concerns. Regardless, much emphasis must be laid upon recruiting competent drivers. The trucking industry invariable faces the challenge of missing out on reliable truckers with a clean background.
At times, some drivers come with a history of rash driving, and therefore, it is vital to get a thorough background check done. Safe drivers create a safe environment for the fleet and cargo. If you’re a conscientious fleet manager, you’ll be keen to track the background of your driver, thereby reducing the liability risks of having unsafe drivers. And if you’re a driver, make sure to work on a track record that reflects safe driving.
Constant Driving Vigil
One of the major issues related to higher premiums points to crashes, i.e., bad driving. But thanks to cloud dashcams, fleet owners can monitor drivers’ behavior via real-time tracking. These dashcams can be super helpful in recording sharp turns, harsh breaks, or sluggish driving. They come with the capability of transferring the video to the cloud, allowing the owners to have actionable proof in an emergency.
Having telematic devices, tracked trips, and driver automation systems can help keep a lid on insurance premiums. If you have been in the boat of high premiums, then TruckX’s innovative and technology-laden products can help you immensely.
We are here to cater to all your needs regarding revamping your fleet without hassle. Contact us for specifications.