High Risk Truck Insurance provides coverage for truck operations that are considered high risk. These risks include being a new commercial truck driver, having too high CSA scores, and your existing insurance was just recently canceled.
Insurance underwriters, insurance companies, and truck insurance broker take these into consideration when evaluating your risk level. A lot of high risk commercial truck insurance companies or truck insurance brokers do not provide policies or coverage for drivers having these on their record, but there are still commercial truck insurance who do and this will help you shop and choose your options.
What is Considered a High Risk Trucking Operation?
Truckers can be categorized as risky by the following factors:
- Safety record - Insurance companies have access to roadside inspection records made by the FMCSA and they will check these records for out of service violations, bad safety measurement ratings, bad records with CSA (Compliance, Safety, and Accountability), BASIC violations, and unfavorable loss history. When it comes to the last one, the high risk commercial insurance company will check for claims that you've had in the past and ensure that your rights reserved.
- Risky driver - High risk commercial insurance companies will place high premiums for drivers that are considered risky. A driver is considered such when he has a bad MVR (Motor Vehicle Report), DUI history, and has less than two years of CDL experience. Drivers that are under 25 years old are also considered as risky. The driver will also get checked for other serious violations such as reckless driving and excessive speeding.
When it comes to age, being too old is not really considered risky as long as the driver passes the medical exam that goes with the issuance of a commercial driver's license. There's nothing to worry about as long as medical history is good. If your insurance provider does cancel, you can always go to Assigned Risk in your state and get continued coverage from there.
- Hauling risky cargo - Even drivers with unblemished records will still get branded as high risk if they are transporting goods that are considered risky. These include explosives, nuclear waste, hazardous materials, and cargoes that are extremely valuable.
- New trucking ventures - These do not have history, which makes it risky in the eyes of insurance companies. The good news is that there are insurance companies that will consider new ventures and offer certain criteria that truck companies must meet.
What is Assigned Risk Insurance?
In cases in which a truck company or driver is considered too risky to the point that no insurance company wants to sign them up or give them excellent coverage, it's the State who will assign this client to an insurance company. This may be your only option, but the upside is that the premiums will be cheaper compared to those from non-standard trucking insurance companies.
There's usually a bad rap when it comes to Assigned Risk, which should not be the case. A lot of truck companies are surprised that they are able to get a better deal or coverage via Assigned Risk compared to other providers that advertise for bad accounts.
How Should You Go About Finding High Risk Insurance?
This is not a hopeless situation and you should still aim to get the best insurance quotes, possible deal, and insurance coverage, and fix whatever is making you a risky candidate. In order to get the best deal, you have to get quotes from different truck insurance agents willing to give you one.
Keep in mind that high risk truck insurance will not come cheap, so don't be too shocked by the rates you will see. You may even find high disparities between one trucking insurance quote from another, with as much as $10,000 difference, and this is not unusual.
A service that can connect you to different insurance companies in all states will greatly help your cause. You can save time and just talk with only companies that are willing to give you an excellent risk truck insurance quote and insurance coverage despite your risky status. This way, you can easily compare quotes and choose the best deal for your trucking business.
In order to fix your risk status, you have to check your SMS scores and safety rating. Find the cause of your risky status and then do the work to change it. You can find resources online that can give your trucking company's safety profile a makeover. This may take some time, but this is time well spent it if means lowering your insurance premiums.
What Are Your Options As a High Risk Driver?
There's a sensible reason why coverage options are limited for high risk trucking operations looking for insurance quotes and insurance policies. See, high risk truck insurance companies only make money when their clients don't make claims. This is why it's more practical for them to insure truckers that are less risky.
Also, a lot of insurance companies don't provide policies or coverage for all states. This means that if the company writing for high risk truck insurance in Georgia may not do the same for New Jersey. The key is to find insurance companies that will write policies or coverage in your state. Some of the states with high concentrations of high risk trucking are Georgia, Florida, California, Texas, and New Jersey.
But there are companies that take chances on high risk truckers — the work is finding them and getting the best deal. Of course, the premiums will be definitely higher, but it's better than having no general liability insurance at all. At least you can stay in business and find ways to reduce your premiums as time goes by.
Frequently Asked Questions:
What is high-risk truck insurance?
High-risk truck insurance is a specialized type of coverage designed for trucking companies or owner-operators that are considered higher risk due to factors such as poor driving records, past accidents, or violations of safety regulations. These policies typically have higher premiums to account for the increased risk associated with insuring such drivers.
What factors can contribute to a truck driver or company being classified as high-risk?
Factors that can contribute to being classified as high-risk include a history of accidents or traffic violations, poor safety ratings, a high number of claims, lack of experience in the trucking industry, operating in hazardous industries or carrying high-risk cargo, and lapses in insurance coverage.
How can a high-risk truck driver or company lower their insurance premiums?
High-risk drivers or companies can lower their insurance premiums by implementing safety measures, enrolling in driver training programs, maintaining a clean driving record, and monitoring their safety ratings. Additionally, working with an insurance agent experienced in high-risk truck insurance can help identify the most suitable coverage options and discounts available.
Are there specialized insurance providers for high-risk truck insurance?
Yes, there are specialized insurance providers that focus on offering coverage to high-risk truck drivers or companies. These providers understand the unique challenges and risks associated with insuring high-risk clients and may offer tailored policies and coverages that better suit their needs.
Can a truck driver or company be denied insurance coverage due to their high-risk status?
While it's possible for high-risk drivers or companies to be denied coverage by some insurance providers, there are specialized insurers that cater to the high-risk market. It may take more effort to find suitable coverage, and premiums will likely be higher, but obtaining insurance is still possible for most high-risk drivers and companies.
Get the Best Help for High Risk Insurance
SoCal Truck Insurance understands the difficulties of getting a policy for high risk truckers and companies. Our vast network and solid relationships with contractors, mechanics, body shops, tow trucks, and automotive dealers enable us to offer quality coverage for high risk commercial truck insurance for new drivers.
Before venturing into high-risk zones, ensure your long-haul trucking insurance is robust. Explore 'Long Haul Trucking Insurance' to understand how you can safeguard your operation under high-risk conditions. Take a step towards safer journeys today.
Contact us to get a free quote. With us on your side, you will drive and operate with confidence.