Overdrive Magazine | Trucking Business News & Owner Operator Info
Issue link: http://read.dmtmag.com/i/611028
70 | Overdrive | December 2015 PAY LESS FOR INSURANCE "Driving record is huge," he says. "It plays not only into rates, but acceptability as well. The amount of time someone has been in business also plays into it. A lot of companies won't take a chance with a new trucker." • Keep insurance needs bundled with one company. Bundling other useful insurance, such as a physical damage policy for the truck, can yield savings, particularly over the long term. It's usually a good idea to stick with an insurance carrier as long as possible in- stead of shopping around for the cheapest rate each year. Insurance companies will be more likely to help owner-op- erators during a rough patch if they've been loyal, Hotop says. Also, it's important to be insured through an A-rated carrier because many shippers and brokers won't honor anything less, Hotop says. Rat- ings are issued by A.M. Best, Fitch, Moody's, Standard & Poor's and TheStreet.com. An insurance com- pany with a good rating should not be shy about letting you know about it; if you're in doubt, ask. It also helps if the client exemplifies stability. "If an owner-operator is pay- ing bills on time and managing their money well, that will factor into getting a lower rate," Stalnaker says. • Shop around, but not too much. It doesn't hurt to keep your eyes open for better deals, but the owner-operator insurance market is more limited than you might imagine. "The worst thing [owner-operators] can do is call five or six people," Hotop says. "There are only 10 to 15 companies that write coverage for commercial vehicles, so agents a lot of times are working to- gether. I recommend finding two good agents in your area." Independent Howard Salmon encourages any new independent to include the Owner-Operator Inde- pendent Drivers Association when shopping around. Salmon, who pulls a reefer and hauls beer, food and other items from the Rocky Mountains to the East Coast, has used OOIDA's insurance for three years. "They will tell you what you need, and they'll walk you through what you need to do," he says. • Try usage-based insurance if it's available. Pay-as-you-drive policies base rates upon miles actually run. "Most insurance companies don't offer usage-based insurance unless the company has 10 or more units, but it can really help," Hotop says. If a com- pany runs more miles in the summer than the winter, they'll pay less when it's colder, he says. (Continued from Page 44)