Sticker shock might be the way your clients handle the cost of their truck company’s insurance premiums, but don’t take it personally. As their insurance agent, you can play a crucial role in educating them on the rising costs experienced throughout the industry, but you can also help them discover ways to reduce their premium costs.
Explain the Premium Factors
Let your clients know that there are many factors that determine what the premiums of commercial trucking ventures will be. When you can have them look at each area individually, they can see where their biggest risks lie and how to address them.
1. Driver Experience
Providers want to minimize their risks, so they prefer companies with qualified and experienced drivers on staff. Poor weather or tough working conditions aren’t new to a driver who has been working for years, and experience improves the likelihood of addressing the challenges favorably. Insurers see experienced drivers as less of a risk than newcomers to the field. Advice clients to hire drivers who have at least two years of CDL experience.
2. Driver Records
Don’t just look at driver experience. Look closely at the driving record when making hiring decisions. Insurers believe that past actions are reliable predictors of the future, and drivers who have records cluttered with traffic violations and accidents raise the flag of high risk. Though no one is perfect, advise clients to hire drivers who don’t have more than three minor violations over the last three years.
3. Driver Stability
Clients may not realize the providers also look at the driving history of their employees. In particular, drivers who have spent several years with the same company or with each company they have worked for are perceived as less of a risk than an individual always changing jobs. A clean resume with few employment gaps and changes implies experience and stability.
Advise on Risk Management Efforts
In addition to looking at the drivers of the company, insurers look at a company’s practices and policies. The decisions your clients make in these areas can also lower their premiums.
Map Out Routes
By carefully mapping out the route for each driver, it is possible to eliminate bad weather conditions, detours, or heavy traffic. Certain routes can increase the risk of accidents, and accidents lead to increases in premiums.
Use Quality Vehicles
Keeping up with vehicle maintenance is important, but insurers love it when the trucks are equipped with modern safety features or have their equipment continually updated. Have clients strive to keep their trucks at 10 years old or newer.
These are just a few of the strategies you can share with clients to help them lower their premiums. By working with them to reduce their insurance costs, you will gain their trust as an industry expert and retain their loyalty over the coming years as you demonstrate empathy towards their expenses.
About Jencap Insurance Services, Inc.
At Jencap Insurance Services, Inc. we strive to provide quality insurance solutions for the Commercial E & S sector. Our longstanding expertise has allowed us to successfully serve your clients for over three decades. Our specialized products include coverages for Transportation, Garage, P & C, Professional, Brokerage Property, Specialty Programs and many more. For more information about our products, we invite you to contact us today at (800) 282-8755.
Please note that Genesee General’s legal name is changing in May to Jencap Insurance Services Inc. (no change in FEIN). Our finance company, Insurance Payment Company (IPC), will not have a name change. Click here for more information on our exciting rebrand!