Dump truck insurance has become a hot topic lately because the rates just keep rising. Even just a few years ago, a for hire dump operation could get insurance at $5,000 per year per truck. Now, rates like those are very hard to come by. For this article we’ve teamed up with InsuranceHub Leavitt Agency to discuss the average cost of commercial dump truck insurance and some tips for lowering your rates. InsuranceHub is a nationally recognized leader in dump truck and trucking insurance. Let’s get started!
The Average Cost of Commercial Dump Truck Insurance
A quick internet search will turn up wide ranges between $2,500-$25,000. Our friends at InsuranceHub say those prices are accurate and they see quotes in those ranges every week. That broad range makes it impossible to know if you are getting a good deal, much less start or manage a business. The best way to get a ballpark quote is to call an insurance agent that specializes in transportation insurance. Ask to see multiple quotes and make sure the agent you are talking to has multiple carrier options to choose from. According to InsuranceHub, these are the key rating factors:
- For hire or utilized as part of another business
- Hauling radius
- Truck size (axles), age and value
- Driving record, previous claims, DOT authority
- Driver age and experience
- The materials you’re hauling
- The state and even zip code the company operates from with metro areas paying higher premiums
- Business credit rating depending on the state you operate in
On average, heavier trucks will greatly influence the cost of your dump truck insurance. That’s because the bigger the truck the higher the risk. Larger dump trucks can cause more damage making them more expensive to insure. Think of it like this, more axles? More expensive insurance.
For your agent to prepare an accurate quote, they’ll need to know the ins and outs of your business. You need to think of them like you would a tax attorney. They need to know a lot of information so they can get you the best rate possible. Insurance agents talk to insurance underwriters on your behalf. They want to paint your company in the best light possible so anything you can provide about your safety is vital to getting a lower rate. There needs to be a lot of trust between you and your insurance agent. Check their online reviews and ask tough questions. Most insurers consider your company’s overall risk; the higher the risk, the higher your rates will be.
Ways to Lower Your Dump Truck Insurance Costs
If you’re concerned about how much your dump truck insurance will cost, there are some things you can do to lower your rates.
Ask about Discounts
Fortunately, there are many discounts available to dump truck operations, so don’t forget to ask about them. For instance, drivers with a clean driving record and their CDL may be eligible for lower rates. Low driver turnover, official safety training programs and a good track record can go a long way. Ultimately, if you take safety at your dump truck business seriously then you’re in store for some great discounts.
All you need to do is ask your insurance agent what discounts they have available and how you can qualify.
The best way to acquire cheaper rates is by exploring your options. With the help of an agent, they can do all the hard work for you. An experienced agent will be able to tell you exactly what carriers they are going to shop you with and even which carriers will be available based on various criteria. For instance some carriers will only insure operations that have been around for 3 or more years. If the agent is coming back with high rates they should be able to tell you why, what you can correct and how to lower your rates in the future.
Insurance agencies that specialize in transportation often have down payment options designed to fit your needs. Cash flow is critical and timing can be everything. That being said, if you can afford a pay in full option, you will often receive a discount.
A one-time payment can also reduce the chances of being penalized for a late payment, add-on costs, or price increases by your insurance provider.
The cost of dump truck insurance varies based on a number of factors. Therefore, it’s important to take proactive measures to lower your rates.
If you’re in the market for a truck insurance quote, we suggest reaching out to InsuranceHub Leavitt Agency. They’ve specialized in dump truck insurance for over 30 years and their team of experts are sure to help.