Do you know there were 5,005 large trucks involved in a fatal crash in 2019 alone? With more than 3.6 million truck drivers in the United States, it’s no wonder such a huge number of fatal crashes arises. For this reason, as a truck owner, you must have insurance to cover any damages arising in case of an accident.
When shopping for truck insurance, there is never a one size fits all policy. You will need truck insurance coverage that will meet the specific needs of your truck and business. Choosing truck insurance providers will ensure you get comprehensive coverage for your trucks.
Besides, you will have peace of mind knowing your trucking business is safeguarded from damage liabilities. However, choosing the right company to offer protection is not simple. You will have a myriad of options to choose from.
If you choose the wrong insurance company, you will have insufficient coverage or incur other hidden charges. So how do you ensure you’ve chosen the best truck insurance provider? Worry no more.
Here is the complete guide for choosing truck insurance providers.
Check Their Reputation
Before you decide to commit to a provider, you must take some time to investigate them. The last thing you would want is to get into a contract with an unreliable insurance provider. You can get to know more about the insurance provider’s reputation from the internet.
You can start by reading client reviews on their website. If the reviews seem too good to trust, you can opt for third-party reviews like those on the better business bureau. Such reviews are beyond the control of the provider hence more reliable.
When reading reviews, the goal is not to find a provider with 100 % positive reviews. Despite the quality of services offered by the truck insurance provider, there will always be negative reviews. So, the aim is to find what are the negative reviews about and how the provider responds to them.
An insurance provider who responds to negative reviews and has many positive comments is worth considering. But if the negative reviews involve elements such as inability to make a settlement, keep off from the insurance provider.
If there are referrals on the provider’s website, contact them and inquire about the provider’s competency.
Assess Their Legal Accreditation
Before choosing a truck insurance provider, ensure the government accredits them. Truck insurance providers must acquire a license from the government before starting operations. The government closely monitors them to ensure they stick to the rules and regulations of the policy.
Besides, in case of any problem tracking a licensed insurance provider becomes easy. Thus, before getting into a contract, ask them to provide you with their license. If you still have doubts about their licensing, look up the license on the local department of insurance website.
Check Financial Stability
This is an important factor that most people ignore. There are cases where insurance providers end up bankrupt, leading to clients losing their policies. Finding yourself among such clients can turn out to be a gruesome situation for your business.
Therefore, you must assess the provider’s financial stability before committing with them. To determine their financial stability, you can ask for a copy of their recent financial statements. From the statements, check their net profit, growth rate, and amount of liability.
If the profitability rate is low and the insurance providers seem to be struggling with debts, that is a red flag. To be assured you will have your back covered for future claims, choose a provider with high profitability and growth ratio.
Apart from the financial statement, check the number of claims the provider handles per year. The provider might be making a huge profit only to be exhausted while compensating claims. The higher the profitability and the few claims there are, the higher the provider’s chances of making full compensation in the future.
Compare Prices and Costs
The truck insurance policy price varies depending on your truck’s type, size, and age. But still, there is a budget that you have to stick to when buying a commercial trucking insurance cover. A policy that will offer comprehensive cover and lies within your budget is all you need.
To land on such cover, you have to compare the prices charged by the various insurance providers. If the fee charged by your chosen provider is too low, you need to be concerned. Chances are they are new in the industry or offer substandard coverage.
Choosing a cheap substandard coverage might appear to save you money, but it will end up being costly down the road. For this reason, choose a provider with industry-standard pricing. Also, check whether any hidden costs might arise after buying the policy.
Hidden costs can escalate the costs of your policy to a whole next level altering your budget. Ask the provider to give you a price breakdown structure to check for hidden fees.
Assess Quality of Customer Care Services
Customer care is your first point of contact with the truck insurance provider. If the customer care services are not excellent, you might not get the help you need. Therefore, ensure to check how available the staff of the insurance provider is.
Also, check whether there are any online forums to contact them. It would be unfortunate if you can’t contact the insurance provider from a remote location to file your claim. Besides, the provider should always contact you in case of any changes to the policy.
The best provider will always offer twenty-four hours of support through a phone or email. Apart from communication, you should also assess the available billing options. Ensure to choose an insurance provider availing multiple and convenient billing options.
Truck Insurance Options
With truck insurance, there is no a one size fits all policy. You must choose a policy that will meet your trucks and business needs. For this reason, you must assess the truck insurance options provided. Some providers will offer one or two policy options that might not offer the kind of flexibility that you need.
Thus, ensure to ask questions regarding their insurance options. How many truck insurance options do you have? Do you customize the insurance policy to meet the unique needs of an individual? If I need to upgrade my cover plan, what will I do?
The best insurance provider must have several truck insurance options. They should also offer customized options that provide both financial and coverage flexibility.
Level of Specialization and Expertise
The truck insurance provider you choose must have the expertise and experience with this specific area. It’s not surprising to come across providers claiming to offer truck insurance, yet they know too little about the policy.
Let’s be honest: a provider specializing in truck insurance is more reliable than one focusing on several policies. A provider specializing in truck insurance has an in-depth understanding of the field.
They know the legal requirements of the policy and abide by them to the latter. To determine the provider’s experience, you can check the number of years they have been in the industry and the number of claims handled. You can also check the kind of experience the staff members have.
You would be more comfortable working with an insurance provider specializing in your area and with years of experience. Besides, a provider offering services for years is not likely to disappear any time soon.
When buying insurance for truckers, focus on the claim process. It would be unfair for you to pay all your premiums on time and have challenges when filing a claim. In the event of a truck accident, getting quick disbursement would help you get back to your trucking business quickly.
For this reason, ask about insurance terms and conditions affecting the claim process. But if the provider is not straightforward with the claim process, that’s a red flag. Some providers might have complicated claim processes that aim at discouraging you from making a claim.
The best provider should be transparent with their claim process. In most cases, they will have the process well demonstrated for you in writing.
Even with online buying of truck insurance being convenient, you need to consider the provider’s location. It would be unfortunate for you to start searching for their location when making a claim.
It would put you under pressure and be a waste of your time. Therefore, ensure the truck insurance provider has an office where you can contact them. A truck insurance provider near you would be the best option to save time and money.
Use This Guide When Choosing Truck Insurance Providers
Finding a truck insurance provider with the client’s interests at heart might be challenging. But with the right tips and knowledge, choosing a truck insurance provider becomes easy.
When choosing truck insurance providers, follow the above guidelines and get it right.
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