Overdrive Magazine | Trucking Business News & Owner Operator Info
Issue link: https://read.dmtmag.com/i/114712
Business Cut your insurance costs A fter a truck payment, insurance is often the biggest fixed cost for owner-operators. Whether you're leased or running under your own authority, there's plenty you can do to reduce insurance costs when updating existing policies or shopping for new ones. MIND THE DEDUCTIBLE. You can raise your policy's deductible to lower the premium, but independents should weigh their risk in an accident with multiple claims. For example, separate $2,500 deductibles on a tractor, a trailer and cargo easily could come into play at once, yielding a $7,500 cost. Leased operators should know if their carrier holds them responsible for a certain amount of carrier liability or cargo deductibles in a loss. KEEP CREDIT HISTORY CLEAN. Credit reports often are pulled by underwriters to determine owneroperator insurance rates. Follow practices to maintain a high credit score, such as paying bills on time. INCLUDE AFTERMARKET ITEMS IN STATED VALUE. When you determine fair market value during policy updates, use online and dealer resources to help determine aftermarket add-ons' real effect on your rig's Physical damage premiums average about 3.7 percent of a truck's stated value for leased operators. resale value. Also, enhancements that would lower the insuror's exposure, like deer catchers and anti-theft devices, can bring rate discounts. ACCOUNT FOR SAFETY. Don't be shy about communicating a strong safety record during any rate quote or policy update. COMPARE RATES. As with anything you buy, it's wise to compare rates periodically. Before changing insurors, see if your current one offers a discount for staying with the company. UPDATE BUSINESS INFORMATION. Type of freight, miles driven and area of haul are factors that affect the accuracy of your rates. Gauges For the second straight month, spot market rates dipped somewhat significantly in all three segments. If this seasonal trend holds, rates will begin to climb in the spring. Diesel surging upward $4.20 $4.10 $4.00 $3.90 $3.80 11/0 5/12 11/12/12 11/19/12 11/26/12 12/03/12 12/10/12 12/17/12 12/24/12 12/31/12 01/ 07/13 01/14/13 01/21/13 01/ 28/13 02/04/13 02/11/13 02/18/13 The U.S. Department of Energy predicted 2013 would see lower diesel prices than 2012, but prices have trended otherwise so far. The national average diesel price rose 26 cents a gallon from DOE's Jan. 21 report through the Feb. 18 report. DRY VAN FLATBED REEFER $2.50 $2.25 $2.00 Internet Truckstop Rates continue downward slide $1.75 $1.50 Jan. 2011 Jan. 2012 Jan. 2013 $27 billion That's how much the trucking industry lost in 2011 to time spent sitting in traffic, says a study from Texas A&M's Transportation Institute. The total cost for all U.S. truckers and motorists was $121 billion – about $818 per driver. The study said the nation's most congested cities are Washington D.C., Los Angeles, San Francisco-Oakland, New York-Newark and Boston. As the job market slowly improves, congestion may worsen, the report says. Prices from DOE's Energy Information Administration, reported weekly. 18 | Overdrive | March 2013 Business_0313.indd 18 2/27/13 10:56 PM