Cargo insurance protects the goods you transport, so if you suffer a loss such as theft, fire, crash, or collision that damages your shipment, you’ll be protected. Additionally, it’ll cover the expense of removing debris from roadways, which is beneficial because these costs can be quite high. Also, it’ll help with the funds needed to prevent additional damage to the cargo in question, as well as any legal defense costs that may arise.
As you can see, cargo insurance is a necessity. However, that doesn’t mean it’s a cheap expense. When shopping around for affordable cargo insurance, there are certain things you can do to save on your rates.
Ways to Lower Your Cargo Insurance Rates
The first thing you need to do is shop around and weigh your various options. This way you can select the best coverage to safeguard your cargo. Many carriers have different options in regards to coverage limits and deductibles.
To save money in the long run you could opt for a higher deductible. By doing so you’ll be paying a lower rate but agreeing to pay more in the event of a claim. Therefore, if you’re more susceptible to claims and other violations, this may not be the best option for you.
When you go to file a claim, you’ll have to pay your deductible regardless of the insurance plan, and your premium will likely increase. This is why you need to carefully weigh your possibilities. Consider the advantages and disadvantages of each coverage option presented to you and choose the one that best suits your needs.
Get Multiple Quotes
When in the market for cargo insurance, you may come across a very enticing offer, one that’s relatively cheap; however, there’s a good chance it won’t offer the coverage you need.
Therefore, be sure to get multiple quotes from several reputable truck insurance agencies to get a feel for current market rates. By doing so, you’ll come across an insurance policy that offers quality coverage at an affordable rate.
Find an Agent That Knows Trucking
The most important consideration to make is your agent’s knowledge of the truck insurance industry. An expert truck insurance agent recognizes the hazards that transportation businesses encounter daily and they know how to reduce those threats.
They also understand the ever-changing needs of a truck driver. As a result, they should be able to temporarily modify coverage to meet their cargo insurance requirements.
By choosing an experienced agent, you’ll be less likely to experience any gaps in coverage or instances where you’re underinsured. Such circumstances can put you in a difficult financial position.
Only Pay for What You Need
It’s best to pay for only what you need when it comes to cargo insurance. That is, if you’re transporting everyday items, you shouldn’t be paying for insurance designed for high-value specialty cargo.
Your employees’ driving records has a substantial impact on your insurance premiums. This means that even minor infractions such as exceeding the speed limit and running a red light can significantly raise your business’s insurance costs.
It thus makes it critical to promote safe driving habits among your staff. You can accomplish this by instituting incentive programs for truckers who don’t receive any traffic violations for a set period of time. Similarly, impose penalties on drivers who engage in reckless driving.
When in the market for cargo insurance, consider these factors, as they help you establish a foundation for the better savings.
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