How Insurance Companies Determine Your Trucking Premiums
If you oversee a fleet of 5 to 50 trucks, you’ve likely wondered: “Why are my premiums so high—and how are they calculated?” The short answer: carriers don’t guess. They use data-driven risk models—and you can influence those numbers. At Strong Insurance, we coach you to present your fleet at its best, so underwriters see lower risk—and you secure better rates.
Safety History: Your Risk Report Card
Insurers start by reviewing your loss history, which is one of the clearest indicators of your overall risk profile.
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Loss Ratio: The percentage of claims paid out versus the premiums collected—ideally under 65% over 3–5 years. Anything higher can suggest you’re costing the insurer more than you’re paying in.
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Claim Frequency: A series of small claims, like frequent roadside assistance or minor damage reports, may suggest poor maintenance or a lack of structure.
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Inspection & Safety Scores: Underwriters review data from platforms like the Central Analysis Bureau (CAB), Bluewire, or Carrier Software. Clean records help. Frequent violations don’t.
Drivers: Who’s Behind the Wheel
Who you hire directly impacts how you’re rated.
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Experience & Age: Most insurers want drivers over 23 with at least two years of U.S. CDL experience. Younger or less experienced drivers raise risk.
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Driver Mix: A fleet with multiple inexperienced drivers—or a high percentage of drivers over 65—can lead to rate increases or coverage denials.
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Driving Records: Insurers expect clean MVRs. Accidents, violations, or inconsistent work histories raise concerns.
Vehicles: What You’re Putting on the Road
Your fleet’s condition, age, and safety technology all play a role in premium pricing.
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Newer Equipment: Trucks with modern safety features like lane departure warnings or automatic braking reduce your risk profile.
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Age & Maintenance: Reefer units under 10 years old—or any vehicle with detailed service records—will look better to underwriters.
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Documentation: A structured maintenance plan and inspection history add credibility and reduce perceived risk.
Operational Discipline: How You Run Your Fleet
Carriers want to insure businesses, not just vehicles. Demonstrating professionalism sets you apart.
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Hiring & Onboarding: Written onboarding processes and clearly documented policies show you’re serious about who gets behind the wheel.
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Safety Protocols: Pre- and post-trip inspections, random drug testing, and ongoing driver training signal a culture of safety.
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Fleet Maintenance: A routine, documented service plan demonstrates that you’re proactive—not reactive.
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Telematics & Technology: Using ELDs, forward-facing cameras, and AI tools helps insurers monitor risk. Many carriers offer discounts for fleets willing to share this data.
Preparation: The Edge You Need at Renewal
Waiting until renewal season is too late. Your loss ratio, maintenance history, and safety culture are already on record.
At Strong Insurance, we help you:
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Review driver files and equipment logs
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Audit safety and loss history
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Organize a strong, professional insurance submission
📞 Call us today at (308) 430-1953 or fill out this quick form for a free quote. We’ll help you take the guesswork out of renewal season—and make your fleet more attractive to carriers.
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