For the first time since March 2020, auto insurance prices have surged significantly. New data from the consumer price index – better known as CPI – revealed that rates of auto insurance plans increased by 6.4% in April and 16.9% in May. This rise marks the fact that various activities have resumed after a year-long pandemic. The coronavirus health crisis has put a stop to travel and movement with social distancing restrictions and lockdowns, which at the time significantly decreased traffic.
This year, the increase in auto insurance rate is happening as a result of people and business resuming their activities and, therefore, going back to driving vehicles both for personal and work reasons. So, now that the economy is slowly getting better and the restrictions are less and less, many people are going back to work, on vacation, and businesses are reopening their practices. The same goes for truck companies. Although these businesses continued their activity during the pandemic, as driving has increased again, truck companies have to purchase insurance premiums. However, there are things you can do to lower your company’s insurance costs.
Get quotes and compare them
Whether you have to get insurance for your personal car or have a truck company and are required to get bobtail insurance or non-trucking liability insurance, it is of the utmost importance you research and get multiple quotes so you can compare and contrast prices and premium plans available. Following the example of truck companies, there are many things that can influence the costs of an insurance plan, such as your business size, how many trucks you own, and the multitude of risks that might occur while you conduct your business.
For this reason, it is necessary you look at different quotes and their coverage. When you own a truck company, it will be of the utmost importance you get bobtail truck insurance for when it is driven and operated without a trailer. This way, if anything were to happen while you drive the truck before taking the first load, the tractor is financially covered in terms of any legal fees or expenses from medical bills.
So, depending on the driving or claims history, credit score, and so on, the insurance rates might differ from company to company. However, on average, a bobtail truck insurance will be $360 per year, with a coverage of up to 1 million dollars.
Create short routes on high-quality roads
An effective way of decreasing the costs of your insurance plan for your truck company, for example, is by creating the shortest route possible. The reason why this could lower your expense is due to the fact that some insurance companies offer discounts on low mileage.
While this can be difficult to achieve when you have multiple trucks with long-distance routes, it might make a difference if you are able to diminish the number of miles covered over a long period. On the other hand, if this is not possible, you will want to make sure that the route is on high-quality roads.
Taking this into consideration will decrease the risk of accidents which will lower your chances of claiming insurance. What’s more, by investing in new trucks with the latest technologies that support safe driving and can help create a well-planned route, you might be able to reduce the premium plan of your insurance in the long term.