Insurance: Protecting Yourself, Your Loved Ones and Your Assets

3 Ways to Reduce Insurance Costs for a Logistics Truck Fleet

It is estimated that Australia's logistics market is expected to reach $187 billion by 2021. Therefore, if you have been thinking about venturing into the logistics business, then now is the best time to dive in. However, as with other industries, you need to observe the rules and regulations of the transport sector. Part of owning a business entails ensuring that your fleet of trucks is taken care of. Notably, the premiums you pay largely depend on various factors such as driver's age, experience and the condition of trucks, among other things. Since you are looking to make money for the business, it is essential to keep insurance costs low. This article highlights tips for getting the best truck insurance coverage for your fleet at the lowest possible cost.

Employ Latest Truck Safety Technology -- For insurance firms, the safety measures that a logistics company implements determine the premium rates to charge. Therefore, it is critical that your trucks be equipped with the latest safety technologies. For instance, when a lorry is involved in an accident, it can be difficult to determine who is in the wrong. In most cases, the blame is placed on the truck driver, especially if they cannot explain the incident. Installing on-board cameras can, therefore, help in such situations because the devices provide ready evidence in case of an incident. A global positioning system is also important because it records crucial data, such as travelling speed which is vital to insurance companies. Other truck safety features that can help bring down insurance premiums are rear cameras and retractable side mirrors.

Show Proof of Driver Safety Training -- Although it is a safer option to employ a truck driver with many years of experience, it is essential for the drivers to undergo regular safety training programs. The reason is that, over time, drivers tend to become complacent and get comfortable. It is especially the case if drivers have not had an incident in a long time. Therefore, enrolling your drivers for periodic driving safety training programs sends the message that safety is an integral part of your operations. Consequently, an insurance company will have no option but to charge a lower premium rate, thereby saving your organisation operation costs.

Consider Your Routes -- Most fleet owners do not know that their choice of routes can significantly impact their insurance premiums. When calculating insurance premiums for trucking companies, insurers have to consider factors such as the route's population density and inclement weather. For instance, if your trucks use back roads or rural roads, then the chances of getting involved in crashes are significantly reduced than on urban streets. As such, premiums for trucks using less congested roads are lower than trucks using city routes. Therefore, when choosing your courses try as much as possible to use those that don't experience severe weather or high traffic or population.