The law requires that every vehicle on public roads must have insurance. As a responsible truck owner, you should take the initiative of insuring your truck and renewing your policy as soon as they expire. Besides the law requirement buying an insurance policy for your truck is like predicting and taking precautions in case of any eventuality. In this guide, we will go through mistakes to avoid when insuring a truck.
Mistakes To Avoid When Insuring a Truck
When insuring a truck, some mistakes happen deliberately or indeliberately. Such mistakes might be costly instantly or in the future. You should avoid making such mistakes. Let us look at some of the mistakes that occur when insuring your truck.
Inaccurate Reports About Your Truck
The FMCSA makes reports about every truck on the road, they have bulks of reports to work on, and it is these reports that the insurance company relies on to calculate how much premiums you should pay. Sometimes FMCSA might fail to produce accurate reports about your truck, which might interfere with the premiums you should pay. You should be conversant with the FMCSA report and make necessary corrections if it is not accurate.
Erroneous Information on Your Insurance Trucking Insurance Loss Runs
Insurance trucking loss runs are a report that indicates how much compensation insurance has paid you and the expected amount of money to be paid. Sometimes you might realize that this information is not accurate. In such a case, raise the alarm to whoever is concerned to correct it as soon as possible. Maintaining accurate information about your truck insurance is necessary as it comes in handy if you file a claim.
Inaccurate Number of Your Fleet
A costly mistake is having an inaccurate number of trucks on your insurance list. Such a mistake can result in an overcharge if damages occur. Cross-checking your insurance list and doing away with the trucks you no longer own is necessary. Doing this will ensure accuracy in your insurance list, and you will not pay many premiums.
Employing Drivers with Questioned Records
If you employ drivers with bad history, the insurance will reciprocate by charging you more premiums. Having such a driver is unlawful, and you might incur more expenses, termed as “negligent entrustment,” meaning you have trusted an unsafe driver with your truck. If they cause an accident, you will be held accountable for it. Keeping bad drivers can interfere with the life span of your company. It is necessary to scrutinize new drivers before contracting them.
Buying a Wrong Policy/Choosing a wrong Insurance
Another costly mistake to your truck is purchasing the wrong policy or a policy from the wrong insurance. The tendency to buy the cheapest insurance which does not specialize in trucking, and you can cry foul when you file a claim.
Making mistakes is human nature, and some mistakes happen without our knowledge, while some happen deliberately. Knowledge is power, invest in it, and you will never go wrong. Insurance mistakes are costly, whether they are deliberate or not. For this matter, this guide has brought to your attention some of the mistakes that might make the insurance company reject your claim.