When companies that provide insurance of any type determine prices for insurance plans, they rely heavily on statistics to determine insurance rates. Trucking insurance is available in all states, and truckers face different risks, and some similar risks, as people who drive automobiles. People who drive trucks need to follow strict guidelines, the laws of the road, and they need to make sure that they have an adequate amount of big rig insurance to cover their needs.
It all starts by comparing truck insurance rates between multiple companies to find the best prices for commercial truck insurance, as well as the best truck insurance policy in terms of customer service and providing a plan that covers you adequately. There are certain situations where a truck insurance provider will move a driver into a high-risk category. High-risk truck drivers generally pay higher rates because they are bumped into a non-standard pricing category. There are multiple ways that truck insurance companies determine a trucker’s level of risk.
Determining a Trucker’s Risk Level
Statistically speaking, some drivers pose a more significant risk of filing for a trucking insurance claim. Truck insurance services use statistics to help determine what rates they should charge a driver. Some of these risks are due to driving record, but many of them stem from other things.
One of the things that can be used to determine the risk a truck driver poses to the insurance company in terms of making a claim is a truckers CSA score. The Federal Motor Carrier Safety Administration, or FMCSA, monitors the safety of commercial truckers using their CSA score. Taking data involving accidents and violation history, a score is determined. The lower rating a driver has, the safer the driver might be. Insurance companies use these statistics to help determine whether or not a driver is at a higher risk of being involved in an accident or other situation.
The amount of experience a driver has also impacts the rate a driver will pay for commercial truck coverage. New drivers are more likely, statistically, to get into an accident and/or make a claim. As the driver gains more experience, they are considered less of a risk unless their driver’s record says otherwise.
Keep in mind that if a driver’s insurance lapses, they are often considered a higher risk. This is true for both personal automobile insurance coverage and commercial business insurance coverage alike. And of course, the cargo that a trucker is carrying also impacts the risk. Truckers that are carrying sensitive cargo that could cause more damage than average might be considered higher risk. This can include things like gasoline and other dangerous material.
Even though you might pay more for truck insurance as a high-risk driver, you will also have effective coverage in case you have to file a claim. Being honest about the risks that you may face is important to do, and lying to your insurance company can prevent you from successfully making a claim at a later point in time. Remember to compare quotes to find the best deals on truck insurance at Federal Companies.
