WHAT ABOUT PRICE? WHY IS COMMERCIAL INSURANCE MORE EXPENSIVE THAN PERSONAL INSURANCE?
The lowest price is nice when you pay your premium each month but ask any tool truck operator that has lost business because of a delayed insurance claim how important price is and they will tell you price is not important. What matters is getting the truck back on the road. Losing hundreds of dollars a day or thousands of dollars a week because insurance adjustors are not responding is not why you buy insurance.
We are not saying that price is not important. It is! You got into this business to make money. Your truck, inventory, taxes, insurance premiums and fuel costs are major components of your business expense. Cutting corners on any coverages can drastically affect your business. In the case of insurance, not having the right coverages or dealing with an insurance company that doesn’t understand your business or care about your ability to see your customers can lead to failure. Some insurance companies do not cover inventory away from home. That means your inventory is not covered on your route.
We often get the question why is truck insurance more expensive than personal auto insurance. The reason is that personal auto insurance is rated for commuting to and from work or school, occasional errands and vacation/travel. Commercial auto polices are rated for large, heavy vehicles that are on the road all day with limited sight abilities. While the average personal vehicle is parked most of the day and night, a commercial vehicle is on the road all day with multiple stops at customer locations. The chance of being in an accident is much higher. Additionally commercial vehicles cannot stop as quickly and are not as easy to maneuver due to size and weight, thus leading to more at fault accidents.
Nobody knows pricing for your industry like we do. Tool trucks are all we insure and we know what is high, low or average pricing for your state. Your industry is very specific and our experience can be used to your advantage. Call 1-800-264-1573 today for more information.