Overdrive Magazine | Trucking Business News & Owner Operator Info
Issue link: http://read.dmtmag.com/i/698304
48 | Overdrive | July 2016 A typical annual premium for physical damage insurance is 3 percent to 5 percent of the truck's value, or $3,000 to $5,000 for a truck worth $100,000. A bad wreck or poor motor vehicle record, however, can bump the cost to 8 percent or more – that is, if you still can get damage insurance. "Typically, the stated value of the vehicle is important, but the driving factor behind premiums is the MVR," said Courtney Wilson, president of 1st Guard Insurance Co. "We go back three years to see if there are any claims or moving violations. If the MVR is clear, the driver will qualify for our best rate. If there are a couple of knocks, they'll get a mediocre rate, and if there are too many knocks, they won't qualify." Coupling a good MVR with solid experience and reliable equipment that's 10 years old or so, she said, will get the best rate possible. "If you've have your CDL for more than five years, you're automatically going to get a better rate than somebody who's had theirs for two years." Likewise, small-fleet owners will save a lot on insurance by hiring experi- enced, safe drivers. Bill Calwonsen has noticed the records of drivers he hires have a major impact on his insurance rates. He owns two trailers and three Peterbilt 379s – model years 1994, 2004 and 2007 – and carries his insurance through the Owner-Operator Independent Drivers Association. Where you typically run also affects rates, said Sentry Insurance's Randy Ramczyk. "If you're driving in down- town Los Angeles, Chicago or a heavy metro area, your risk for a collision is higher," he said. "You've also got higher-theft areas like Cook County in Chicago, Miami and really all of Florida, where there are more cargo thefts." A typical deductible for physical damage insurance policies is $1,000. The premium savings that accompa- ny a higher deductible usually don't justify the risk, said Steve Libertore of National Risk Management Services. "If you don't make any claims in a year, it could save you a couple thou- sand dollars, but if you do make a claim or two, you've gone beyond those savings," Libertore said. Most insurance companies, includ- ing OOIDA and NRMS, try to write policies for tractor-trailer combinations DAMAGE CONTROL Craig Benfield has noticed that some insurance companies will argue about the value of an older truck. He maintains just $10,000 worth of coverage on this 1992 Peterbilt 379, which keeps his premium around $660 a year. Pay attention to these factors driving physical damage insurance costs BY MATT COLE Bill Calwonsen owns three trucks, including this 2007 Peterbilt 379, and pays around $2,600 a month for physical damage coverage for all three rigs.