How to Avoid the 7 Deadly Sins When Buying Truck Insurance

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As strange as it may seem, your biggest problem might be your current agent or broker. If they do not handle truck insurance on a daily basis, they are out of touch with our market! Keeping up with the truck insurance market is a full time job. If your broker is not independent or if they don't specialize in truck insurance they may not have the tools available to do a good job. You may be losing out in better protection and lower premiums.

Our business is driven by change. Today we are dealing with an increased supply of truck insurance companies and a lower demand for their products. There are now insurance companies entering the truck insurance market that do not have the expertise you need in an insurance carrier. You need a company that understands how a trucking company operates and what you need in the event of a loss so you can get back to work. It's a great time to get in on some lower rates but make sure you do this with a carrier (and agent) that specialize in truck insurance.

This is why it's best to ask a broker who specializes in truck insurance to quote your insurance. Why is it best? Because they represent many different insurance companies.

Here are a few insider tips to keep your rates down:

Slow down and keep your driving record clean. This alone can save up to 30% on your rates.
Prove to your new company you are a good driver. Ask your present company for a 3 year loss history.
Where you park your truck at night counts! Check with your broker if you have choices where to park.
Protect your investment. Lock and remove your keys from your truck no matter where it's parked.
Don't put a new driver truck insurance Downey Cabehind the wheel until you have company approval.
Routine maintenance and safety inspections are worth their weight in gold.
Deadly Sin #2

INSURANCE COMPANY RATINGS

Did you know that all Insurance Companies are given a report card? Do you remember the report cards you received when you were in school? The letter A was for excellent, B was for good, C was for average, and D was for poor.

Insurance companies are given a "financial" report card with these same letter grades. The company who grades them is called the A.M. Best Company. Their purpose is to protect you from buying insurance from a company in poor "financial" condition. When you buy insurance your broker should tell you the grade of the company he/she is quoting. It is safest to buy insurance with a company who has a letter grade of A or B at the lowest.

Here are some other reasons a company's grade might affect you:

Poorly graded companies can mean a poor financial risk for you.
Some truck brokers might not accept proof of insurance from companies with less than an "A" grade.
Do you know if your sub-haul contract requires you to buy insurance from an "A" rated (grade) insurance company? It is better to know what you need before you begin shopping for a "good" price. Tell your broker you need an "A" rated company when you ask for your quote. The cost to cancel and rewrite a new policy is very expensive.
If you receive a quote from another broker and are not certain about the A.M Best Company Rating, then look it up at with AM Best online.

Deadly Sin #3

ADMITTED VS. NON-ADMITTED COMPANIES IN CALIFORNIA

The state protects you when you buy insurance from an admitted company. Admitted companies are companies that are licensed in the State of California. They contribute money to the California Insurance Guarantee Associate (C.I.G.A.) The State sets aside this money to pay claims in case an admitted company goes broke. Non-admitted companies do not contribute to the C.I.G.A. fund. If a non-admitted company goes broke, there is no guarantee your claim will be paid. However, non-admitted companies are not all bad. The most important thing about a company is their A.M. Best rating, but you should know that you're asking for trouble if you buy insurance from a non-admitted company with a bad A.M. Best rating.