Many consumers are wondering how insurance companies come up with their truck insurance rates. What factors are their bases for calculating such prices? Here are some of elements that insurers use in determining truck insurance rates.
· Driver’s age – the age of the driver tells insurers whether or not he is considered high-risk. Although most truck drivers are above 30 years old, some who are below 25 years get higher rates. The age of the driver may also tell about the person’s professional experience as a driver.
· Employment history – it is important for insurance companies to know what your previous jobs were. If they are related to truck driving, then that would be a plus for your policy. However, if you have been changing companies lately, then insurers may ask for reasons or even contact your employers for verification. If you are proven to have bad employment records, it will cause trouble to your truck policy rates.
· Driving record – less or no accidents means more affordable rates. Although it may sound simple, many drivers still neglect this factor in their driving careers. As a result, they get expensive premiums for the insurance policies they get.
· Previous coverage providers – if your truck or vehicle has been insured in the past, your potential insurance providers would want to know. This is to identify whether you have been a good and responsible driver or not. If not, then that will be reflected on your truck insurance rates.
· Years of operation – because trucks are often run by companies and industries, you will be asked how long the company has been operating. Oftentimes, the company itself will be asked for reports regarding their accident rates and how they treat such unfortunate events.
· Driving area – the locations or areas included in the truck’s route are also considered by insurance people. If the neighborhood is busy or it poses threats to the security of the truck and cargo, more likely you will receive higher prices for your truck policy.
· Cargo –cargo is also considered. Oftentimes, light and less expensive cargoes are charged lesser compared to heavy and expensive ones. In case of accidents, insurance providers will also pay for cost of the truck’s cargo if they were damaged.
· Truck’s age – unlike cars, older trucks are said to be more sturdy and reliable. If your truck is already more than 4 years old, make sure it is kept in good working condition.
These are the things you need to know about truck insurance rates. By being aware of them, you can prepare what’s needed before applying for truck coverage.