Semi-trucks are used to haul consumer goods throughout the country. Since these large vehicles share public roadways with passenger cars, transportation companies must have a comprehensive commercial trucking insurance policy in place at all times. Commercial trucking insurance is designed specifically to mitigate the financial damages that could be caused by a collision between a semi-truck and a passenger car. Many factors work together to help determine the cost of monthly premiums for any commercial trucking insurance policy.

1. Driver Demographics

One of the most important factors that will be used to determine commercial trucking insurance premium rates is the demographic of the drivers hired by a transportation company seeking insurance coverage.

A company that hires young, inexperienced drivers will typically have higher monthly premiums than a company employing older, more seasoned drivers. The driving record of each semi-truck operator can also play a role in determining monthly premiums. Hiring the right drivers is essential in reducing the cost of commercial trucking insurance.

2. Routes

Transportation companies can complete deliveries within a large geographic area. Some companies operate regionally, while others choose to complete routes that run across the nation. The nature of the routes a transportation company completes regularly can influence their commercial trucking insurance rates.

Routes that cut through densely populated areas, regions where inclement weather can affect road conditions, or high-crime areas can cause monthly premiums to increase. Semi-trucks that spend a lot of time in these areas are at a higher risk of being involved in an accident. The safer a transportation company's routes, the lower their monthly commercial trucking insurance costs will be.

3. Truck Condition

Only well-maintained semi-trucks are capable of operating safely on public roadways. Semi-trucks travel many more miles than the average passenger vehicle in the course of a day. This means that a small maintenance problem can quickly become a major safety hazard if not addressed immediately.

Insurance companies tend to offer lower premiums to transportation companies that utilize newer semi-trucks to complete their routes. Newer trucks are less likely to experience a serious failure that could cause an accident to occur. If a transportation company has older semi-trucks in its fleet, meticulous maintenance records proving the truck is safe to operate may be required in order to keep monthly premiums low.

Every company that employs semi-trucks on a regular basis needs access to commercial truck insurance. Hire the right drivers, select safe routes, and maintain your semi-trucks to keep your monthly premiums as low as possible.