If you are a dump truck business owner, you understand the importance of having the right insurance coverage to protect your trucks, drivers, and the business which is the source of your livelihood. Regardless of the types of materials you haul or trucks you own, you need to have trucking insurance to ensure proper protection of your assets. To get trucking insurance for your dump truck company, you have to cover the costs, which are usually very high most of the time, and affected by various factors. Continue reading to learn the things that contribute to the cost of your trucking insurance.
The type of vehicle you own is the first factor that will affect your insurance premium; if you have acquired a larger and new dump truck for your business, you should be ready to pay a higher amount in premium because it poses a higher cost risk to the insurance company. The people who drive your dump truck play an important when the insurance company is determining the cost of your trucking insurance; since insurance companies do not like risks, having drivers with a bunch of tickets or accidents on their records will not help your case.
A dump truck business owner with a large fleet of dump trucks will pay a higher insurance rate compared to another with one or two trucks, because the more the trucks you have, the higher the chance of a claim. When you are ready to buy dump truck insurance, one thing you should know is the type of material you will be hauling; whether it is sand, dirt, asphalt, gravel or hazardous material, your insurance company will consider it when calculating your premium.
The location of your trucking company and where you will be hauling your cargo is also of interest to the insurance company and affects the rate of your insurance premium; companies operating in rural communities often pose more risks and likely to pay a higher premium. Your dump truck insurance rates will also be affected by different aspects of your business like the number of trucks and drivers you want to insure because each poses a driving risk individually.
If you own an established dump truck business with a good reputation and history of good and competent drivers, you pose minimal risk to the insurer, which results in lower insurance rates. Since it is cheaper to take debris to a transfer station instead of a landfill, you can expect to pay lower insurance rates. Highlighted above are the things that determine your dump truck insurance cost.