Although there are many factors that determine the appropriate rate on a commercial truck insurance policy, one of the primary eligibility rating factors is years of experience for the company requesting coverage.
There is a significant difference between the factors that determine eligibility and factors that determine the rate.
Many insurance companies have minimum standards that require them to offer certain coverage to a driver.
A good example of this would be companies that offer more than 3 or more than 5 years of experience.
Normally, these companies will also have a loss history standard in place as well, such as, no more than one accident or violation.
When companies place high standards for eligibility on their insurance policies, they in turn are able to offer very competitive rates to the clients that qualify.
Normally these rates will be between 30 and 45 percent less than other carriers.
Insurance companies that offer coverage to businesses with a minimal amount of experience generally have a higher base rating than their counterparts.
The benefit to being with a carrier that has a lower eligibility standard is that if drivers receive violations or are involved in chargeable accidents they will be able to keep the insurance policy.
When shopping for a commercial truck insurance policy, it is advised that business owners or owner operators to work with an experienced agent or broker.
By working with an experienced agent or broker the business owner will most likely be able to receive the most competitive package available as long as the broker has access to multiple insurance companies.