Truck insurance is an important investment for all truck owners and operators as it allows them to protect their vehicles and their businesses in a huge way. One problem that arises when buying such policies is the overall cost and you might be wondering, why are they so high.
The thing is, the cost of truck insurance can vary greatly depending on several factors, and if you’re thinking about what those factors are, you came to the right place.
In this article, we will explore the top 5 factors that can impact the cost of a truck insurance policy. From the type of truck you drive to your driving history and the coverage levels you choose, each of these factors plays a role in determining the cost of your insurance.
By understanding these factors, you can help yourself out in making informed decisions when selecting and purchasing truck insurance, ensuring that you have the right coverage for your needs at a price you can afford.
1. Type of Truck
The first factor is the type of truck you drive. There are multiple types of trucks such as heavy-duty commercial trucks or light-duty pickup trucks, and they can affect your insurance premium. The type of truck will determine the size, weight, and value of your vehicle, which in turn will impact the cost of insuring it. Commercial trucks, for example, may cost more to insure due to the increased risk they pose on the road when compared to lighter vehicles.
2. Driving History
Not only the type of truck that you are driving but your driving record, including any previous accidents or violations, can impact the cost of your insurance. Insurance companies consider the driver’s past driving history to determine the likelihood of future accidents. This means that drivers with a history of accidents, traffic violations, or DUI convictions are considered to be higher risk and may require to pay more for insurance.
3. Business Use
If you are using your trucks for commercial purposes, such as delivering goods or transporting goods for hire, and many more, there is a huge possibility that you may pay more for insurance. The reason behind this is that commercial truck insurance is typically more expensive than personal auto insurance due to the increased risk of accidents and the need for higher liability coverage.
4. Coverage Levels
The amount of coverage you choose, such as liability coverage or comprehensive coverage, can also affect the cost of your insurance. Higher coverage levels generally result in higher premiums but provide greater protection in the event of an accident. Choosing a higher deductible can lower your premium, but increase the amount you would need to pay out of pocket in the event of a claim. So choose wisely.
5. Location
The last one on our list is your location, including the state where you live and the area where you drive, which can also impact the cost of your insurance. Insurance premiums can vary based on the level of traffic, accident frequency, and other factors that happen in your area. For example, insurance in a densely populated city with high levels of traffic may be more expensive than in a rural area with lower traffic levels.
Are you in Calgary and are planning to purchase a truck insurance policy? Let us know if you are by leaving a comment in the comments section below so we can guide you!
