In a recent survey, Truckstop found that among the top carrier concerns, rising insurance costs were rated at 61% aside from fraud, fuel costs, and rates.
In a recent Truckstop Nation podcast, host Brent Hutto, Chief Relationship Officer of Truckstop spoke with Chad Eichelberger, President of Reliance Partners who shared his thoughts on the issue.
“Insurance has gone up tremendously as the cost factor for running an operation,” Hutto said.
Both Hutto and Eichelberger shared that it is important for start-ups, owner/operator businesses and operations with only one or two trucks “to do your homework” when it comes to talking with insurance underwriters.
“If you’re brand new, it’s going to be a little more of a hill to climb in getting the type of insurance that is maybe the best cost for you,” Hutto said.
Eichelberger added that when it comes to insurance, being comfortable with your agent is vital.
“I feel like going out and getting experience, talking to your agent, getting comfortable with that, is an incredibly overlooked thing we see happen in the marketplace,” Eichelberger said.
For example, if a person or company is filling out insurance information and checks all the boxes for cargo without any intention of hauling all types of cargo, the cargo rates will be unnecessarily high.
“Be specific about what you are going to haul,” Hutto said. “Insuring everything can be costly.”
Where a company operates is also extremely important when it comes to insurance rates.
“There are certain states where the operation expenses are just higher,” Eichelberger said. “That’s reflected in insurance. If they see a lot of mileage in particular states that are higher risk states, that’s going to be factored in when they look at pricing for insurance. It’s one of those things you have to contemplate.”
Hutto added that insurance companies operate on the probability of something happening.
“You insure the person and then you insure the probability of things happening in a certain environment.” Hutto said.
Operation location also plays a huge part in determining insurance rates.
Eichelberger agreed giving the example that “that a fender bender in Lake Charles, Louisiana, I’m going to tell you, is going to cost a whole lot more than a fender bender in Green Bay, Wisconsin.”
In conjunction with National Logistics Day and Insurance Awareness Day approaching on Truckstop conducted an online survey of more than 2,000 of their carrier customers to understand the dual impact of logistics and insurance on freight movements. The survey highlighted the crucial roles that logistics professionals and insurance play in keeping America’s freight industry moving smoothly and securely.
The survey provided valuable insights underscoring carrier needs in the logistics and insurance space.
The top carrier concerns aside from fraud, fuel costs and rates include:
- Insurance costs (60%).
- Equipment costs (44%).
- Government regulations (36%).
- Parking (30%).
The most important customer needs include:
- Maintaining reputation of my authority (89%).
- Finding the best place to fuel up (78%).
- Feeling safe when parked – (especially for women drivers (72%).
The survey also showed that carriers have expanded their network by adding 13% more brokers compared to the previous year. Data indicated that brokers are now handling approximately 12% additional loads per month.
To hear the entire podcast visit https://truckstop.com/podcast/episode-35-chad-eichelberger/
Dana Guthrie is an award-winning journalist who has been featured in multiple newspapers, books and magazines across the globe. She is currently based in the Atlanta, Georgia, area.
