For small fleet owners, or single-truck-owner-operators, the cost of doing business can be huge. Fortunately, there are ways for carriers to save on one of the most expensive business costs that can’t be avoided – trucking insurance.
Insurance companies are looking for smarter and simpler ways for transportation companies to pay their premiums. For some insight on the cons of traditional insurance and info about alternatives, we reached out to Wess Peterson, President of Triumph, Insurance division.
Lower Your Trucking Insurance Premium through Safe Driving
Prioritizing safety as a practice is one of the top ways to ensure a low insurance quote overall. Maintaining a clean DOT safety record doesn’t start and stop with hiring commercial truck drivers with fewer than two minor moving violations in a three-year span. Your company’s DOT record includes ISS-2 scores, your Company Snapshot, inspection records, and more. Develop a culture that includes regular safety training and employee rewards for safe practices to develop positive habits within your fleet. Over time, your fleet’s pristine record will result in lower premiums. By insuring your fleet with Triumph’s Daily Rate, you’re able to keep a close eye on the safety of your drivers and develop benchmarking through the exclusive risk management services included in all policies.
“Gauge My Fleet … allows [owners] to track how [their] drivers are performing compared to other drivers like them, in similar lanes, with similar equipment, etc.,” said Wess Peterson, President of Triumph Insurance Group. “…The dashboard shows you some trends. It’s able to show you speed effects your drivers’ performance … [or] … your fuel economy.”
Insure Your Fleet with a Company that Provides other Financial Services You Need
One simple way to save is to work with a company that bundles several financial services at a discounted rate, such as Triumph. As a factoring client, Triumph offers a competitive rate on traditional insurance policies paid monthly with a deposit.
However, factoring clients who employ the Daily Rate receive a deeper discount and the added advantage of deducting their insurance payments from their factored funds in small increments with no interest.
Pay a Daily Rate vs. A Monthly Rate for Lower Interest
No matter how cheap the commercial truck insurance is, paying an annual premium in one lump sum to receive a discount is out of the question for many owner-operators. Even paying monthly can be a burden when you’re strapped with a large down payment that’s due before you can get to the more manageable monthly expense. Cue the Daily Rate, Triumph’s cost-effective solution for owners strapped for cash. Rather than pay a monthly lump sum, simply have your monthly bill broken up into small payments and pulled from your factored funds for the month. So, if you factor eight invoices, your monthly insurance bill is broken up into 8 payments and deducted from your factored funds at no interest.
“Traditionally, that down payment is 20 to 25 percent of what the premium is,” Peterson said. “In ours, that down payment is a third of what the industry standard is.”