How We Work To Keep Our Insurance Rates Low
It probably won’t surprise you to learn that freight companies pay higher insurance rates than the average driver.
At Wadhams, we carry the mandatory Primary, General and Personal Liability Insurance, and we do face additional costs through state rules and regulations.
However, freight carriers can make institutional changes that help to keep these costs from affecting our customers. Some of the factors within our control include:
1. Safety and Technology Investments: Freight companies have the option to make upfront investment in onboard safety features such as e-logs, on-board computers and satellite systems, to bring down their insurance rates.
2. Carrier Safety Administration (CSA) Compliance. Fortunately for carriers (and customers) the quality of a company’s operations and drivers are also taken into consideration when their insurance rates are calculated. A high CSA score means better rates for the company and its employees.
There are also factors beyond the control of the carrier, that relate to their service and customer needs. This includes factors such as
- Which States truckers drive through;
- Unavoidable toll roads along the route;
- Border crossings and customs;
- Distances travelled
The type of cargo being hauled also impacts insurance rates. The ARG division of Wadhams transports hot asphalt and gasoline, which are classified as hazardous materials. They raise unique safety concerns such as contamination, fires or toxic fumes, and the cost of accident would be tremendous. That’s why the government requires an additional $1 million in insurance coverage for such cargo.
So How Does Truckers’ Insurance Affect the Customer?
Once a company factors in primary, general and personal liability insurance, and tack on hazardous material premium, they’re facing over $4 million in coverage. This doesn’t even include workers compensation insurance, but suffice it to say that insurance coverage is a key factor impacting the cost of doing business in the transportation industry today.
Although we do everything in our power to set affordable rates for our customers, rate adjustments become necessary when the cost of doing business increases year after year.
Attribute it to inflation, increased safety precautions, regulatory precision or all of the above – the transportation industry has been challenged to keep its prices as low as they are all amidst the cost increases.