As a dump truck driver, you may haul anything from junk to the junk yard, to marketable commodities to construction sites and other properties. You have to protect your vehicle, the cargo, your business and yourself. That’s why you need trucking insurance. Even though you might think you haul something relatively inexpensive, that’s not the point. Simply driving a dump truck is a cost risk—something that trucking insurance can help cover. However, to get insurance, you have to pay for it, and various factors could affect your premium. Here’s how just a few of these operate.
How Insurers Determine Premiums
Your trucking insurance premium is the cost you pay for the insurer to cover you in case accidents occur. That’s why you need to be able to afford this premium. If you don’t (or can’t) pay, then your insurer might cancel your policy. That could lead you to face problems getting insured in the future.
However, no two truckers are likely to face the same premium. Different insurers price policies differently of course. Yet, they also base premiums upon the risks and individual driver poses. Those who have a higher likelihood of filing a claim, or filing high-value claims, on their coverage are more likely to pay more for their policy. Multiple factors might impact this rate.
Risks Influence Rates
On a baseline level, dump truck drivers will pay more than average drivers for their truck’s insurance. This is a commercial vehicle which needs to carry commercial auto insurance, and the policy must include coverage specific to your truck. That’s why insurers will look at numerous factors to help them set rates. These might include:
1. The Type of Vehicle
Dump trucks are not the same. Some are larger or smaller. Others are more expensive, and still others are newer or have special features. Those that pose a higher cost risk more money to insurer, like a large and brand new truck, will likely cause an increase in premiums.
2. The Cargo
Cargo loads also contain different values. A truck that hauls dirt or sand has a different driving risk than a truck that hauls scrap metal. Trucks hauling hazardous materials, clearly might pose more of a safety risk than one that hauls gravel. Therefore, the insurer will likely consider the intended cargo when helping you select coverage on the vehicle.
3. Your Location
A truck that operates in rural communities probably faces (and poses) different risks than a truck operating in a city. For example, a wreck on an interstate might become much more costly than one on a backcountry work site. That’s why your agent needs to know where you will operate your truck. They can make sure you receive the appropriate balance of coverage.
4. Your Business Itself
Different aspects of your business structure might impact your rates. For example, should you want to insure multiple dump trucks, and multiple drivers, each of these will pose values and cost risks to the insurer. Having to insure multiple drivers, for instance, means that each will pose driving risks individually. Therefore, your rates will likely change.
Numerous other factors might also go into the rates you choose. Importantly, the types and amounts of coverage you buy will likely increase your premiums. It’s a simple law of supply and demand.
That’s why it is important that you speak to your insurer about how they can help you balance the appropriate coverage levels. Your agent is an expert in what steps you can take to always preserve affordable, but adequate rates. What’s more, they can help you determine discounts and other savings incentives to keep your costs in line.