As most of you have noticed, the price of your insurance might has gone up about 30% at the time of your renewal. I received several calls from some of my clients complaining about this fact, wondering why this price increase has been applied, so I did a little research.
Apparently it should be the other way around, and the Insurance should cost less if you have had no accidents. But most of the times this is not correct, as Insurance Companies underwrite the coverage every time they write a policy.
Insurance Companies have access to the USDOT database, so they can see how many times you crossed a scale, what kind of problems you had during an Inspection and all other circumstances that will help them to determine what kind of Owner Operator you are.
Insurance Companies can see how many vehicles had used your permits to cross a scale, and if you are not insuring everyone on your system, they will deny coverage.
Insurance Companies look for the most critical matters that will affect your performance and safety, they want to make sure you are a safe driver and in compliance with all the Rules and Regulations from the USDOT.
If your score is more than 75% in Maintenance, Log Book or Driver Fitness, it is most likely that they will ask for explanations about your high scores, and they will surcharge your policy for up to 30% if they decide to renew your Insurance.
Insurance Companies rely heavily in the USDOT database, and have access to all the information about you.
To avoid any of these problems you must follow the following recommendations:
– Don´t let other people use your permits
– Don´t change drivers too often. They don’t like heavy driver turn arounds.
– Your equipment must be a very well kept, with no maintenance problems such as oil leaking, loose clamp, broken lights, bald tires, non-operational fire extinguisher etc.
– Don´t drive for too many hours without taking the mandatory 30-minute break
All of the above determines the Insurance premium you have to pay. In addition, at the time of renewing your insurance, they are going to ask you for your IFTA reports, so that they know which States you travel in.
If you have any questions and want to prepare your file before you request your renewal, call 909.390.3656. We will look at your safety system together and prepare a brief for your insurance Co.
Any USDOT questions, please call me, you already know I will help you to the best of my ability.