Did you know you could improve your CSA score and cut insurance costs at the same time? After your truck payment, insurance is one the biggest fixed costs for an owner-operator. Insurance is a necessity, but it is often not given enough attention. Continue reading to learn our tips to cut insurance costs and start improving your CSA score.
Good habits for insurance policy holders:
- Know your insurance policy terms. Know exactly what you’re covered for in the event of an emergency. Also, leased operators should know if they are held responsible for a portion of carrier liability or cargo damage.
- Mind your insurance deductible. Often people choose to increase their deductible in order to decrease their premium rate. While this may seem like a good way to cut costs, in the event of an accident, a separate deductible of $2500 for your tractor, trailer, and cargo will get you a $7500 bill. Weigh the potential risk against the monthly rate to determine the best plan for your business.
- Include aftermarket items in your stated value. Keep the insured value of your rig up-to-date. Before your policy renews, determine the value of any aftermarket add-ons and their affect on your rig’s resale value. Save your receipts! Also note that adding certain equipment to your truck that will lower the insurer’s risk, like an anti-theft device, could potentially reduce your rates.
- Compare rates. Compare insurance rates at least once a year. When your policy is coming up for renewal, get a few rate quotes from different insurance companies. This will ensure you are getting the coverage for the lowest price possible.
- Frequently update your business information. Keep your insurance company apprised of your business specifics. Things like the type of freight, miles driven, and the area of haul can all affect your rates.
- Keep your credit history clean. Insurance companies will sometimes pull your credit history to determine what they will charge. Pay your bills on time so they don’t have a reason to raise your rates.
- Maintain a good safety record. Don’t be afraid to brag a little. If you’ve got a great track record of safe driving, make sure your insurance provider knows it.
- Consider using a log app. Nearly 98% of drivers still use paper-based log systems. In today’s society, it’s easy and more efficient to keep your logs either on a computer or smartphone. There are several free log apps for smartphones such as iDDL and Driver’s Daily Log, which can improve your accuracy and help lower your CSA score and insurance premiums. Apps like these might also reduce your compliance liability.
- Know your CSA score. A good CSA score can lower your insurance rates. And, in a somewhat circular manner, having good insurance can help keep your CSA score low.
- Investigate insurance outside of what your carrier provides. Many times, it is cheaper to go outside of the carrier for one type of insurance. Physical damage, for example, could be cheaper, but bobtail might be cheaper through your carrier.
- Make sure you aren’t paying twice! I’ve talked with some drivers who pay for it directly, and do not realize the same insurance is being deducted from their settlements. Check with your carrier to see exactly what coverage you have and ask for a breakdown of the coverage. Many times the descriptions are vague.
- Try not to wrap the insurance into the price of the truck. (If possible, as some lease agreements require this). Why pay interest charges for the insurance premiums within the truck note?
It’s required that you have insurance, but it’s up to you to make the best of the insurance you have. Don’t end up paying high premiums just because you didn’t shop around for a better price. Also, make sure you’re communicating with your insurance provider so that your coverage is accurate. All insurance is not equal, so do your research and see how it can affect your CSA score and your bottom line.