By Deborah Graves, OOIDA Truck Insurance Department
It is easy to focus on the price of your insurance and let that guide your decision-making process when purchasing coverage. However, doing this could actually wind up costing you more in the long run.
The most common question is: How much is my truck insurance going to cost?
Let’s talk about the “how much” part of buying truck insurance. This is pretty important, especially in today’s economy. However, should you buy for price alone?
You already know the answer.
It is very rare to get “something for nothing,” so be suspicious when you’re given a price that seems far below the other quotes you’ve received. When purchasing insurance for your business, the idea is to get the most value for the premium you pay.
You’ll need to consider the coverage you are getting for the price you are paying. Policy wording can be difficult to understand. Make sure your agent can answer all your questions. Also, make sure you are comparing “apples to apples” when purchasing your truck insurance.
In order to get the best rates, be honest with your agent about your operation and your records, including your work history and your motor vehicle record. If you operate your business in a professional manner and remain loss-free, you should receive better rates.
It’s important to consider what services you can expect for the money that you pay.
For example, if you purchase primary liability and motor truck cargo and are required to maintain insurance filings, you should expect your agency to provide this service.
Providing proof of insurance (certificates) in a quick and timely manner is definitely an agency service you should require.
You should also expect an explanation of how to file a claim if you are involved in an accident.
It’s not smart to select insurance for low rates if the company can’t (or won’t) provide good, timely service. Those lower premiums won’t help you at all when you can’t get loaded because of problems with your insurance.
You can reach an OOIDA truck insurance agent Monday through Friday, from 7:30 a.m. to 5:30 p.m. CST, at 800-715- 9369.
Do you have an insurance topic you would like to know more about? If so, email us at
[email protected]. We will be covering a new topic each month and will do our best to address everyone’s questions.
The Owner-Operator Independent Drivers Association (OOIDA) has been fighting to defend the rights of small business truckers since 1973.
