Renewing your truck insurance can be very overwhelming and perhaps frustrating. However, you’ll have to deal with renewals once a year if you’re a trucker or run your own fleet. Many in the trucking industry have negative feelings towards renewals due to hefty insurance bills and premiums. Due to the rising costs, the renewal process is very important and you must weigh all your options.
In this article, we’ll discuss the renewal process and what you can expect.
What to Expect during a Truck Insurance Renewal
The Cost of Your Insurance May Increase
Did you know the cost of insurance premiums increased from 7.1 cents per mile to 9.2 cents in just one year according to ATRI? Unfortunately, these rates continue to rise every year.
There are plenty of factors that contribute to these increases. Such as:
- Insurance Rates– No matter which trucking agent you choose to work with, they can’t control the cost of insurance rates. Oftentimes if there’s an increase in the number of trucking-related accidents across the country then insurance rates will increase for everyone. The more accidents there are, the riskier the sector is to insure.
- Driving Record– Insurers take into account a driver’s record during the insurance renewal process. If they see drivers with significant violations or accidents, they may charge you more for insurance since you’re deemed high-risk.
- Claims– Keep in mind, the more claims you or your trucking company files, the higher your premiums will be. Just one accident can significantly impact your rates.
- New Trucks– Having newer trucks with advanced technology and greater fuel efficiency is great; however, it comes at a price. Since these trucks are of higher value, it will cost more to replace them in the event of an accident.
More Calls from Other Insurance Agencies
When it’s time to renew your insurance policy, that information is usually visible to the public. That means many insurance companies can see this information. Be prepared for calls and emails from several other agencies trying to convince you to buy a policy from them.
Though you may get lots of enticing offers that promise you a lower premium, make sure you talk with your current agent if you want to shop around. Oftentimes they have the ability the shop for better rates since they tend to have multiple carrier options.
Moreover, if your current agent is offering you the same quote then why choose another company? If you’re happy with your current agent’s services it’s best to stay put. However, if there are issues such as late renewals, or delayed services, it could be time to find a new agency.
A Non-renewal Isn’t the Same as a Cancellation
You may receive a non-renewal notice 30 to 90 days out. If this happens try not to panic! Fortunately, a non-renewal doesn’t always affect your ability to get insured elsewhere.
For instance, if your carrier doesn’t operate in your state anymore or they leave the market entirely they may send you a non-renewal notice. Although, if your non-renewal is the result of a late payment or a high number of claims then this could affect you.
Luckily, if you’re insured through an agency then they can shop around and find another carrier that would be a good fit for you.