How to Get Cheap Truck Insurance: 9 Simple Steps - Money Soldiers

How to Get Cheap Truck Insurance: 9 Simple Steps

When your truck breaks down on the road, it can be a nightmare.  You are likely to rely on your truck for all manner of things.  If it is your main form of transport, you might struggle to get by on a daily basis.  The best thing you can do is make sure that you have a high level of coverage for your truck.  That way, if the worst should happen, you have the finances to fix it right away.

Avoid basic coverage and policies.  They might save you a little money now, but they will cost you a lot more money later.  Here is how you can get cheap truck insurance without scrimping on quality. You should consider working with a freight factoring provider to improve your initial cash flow and get the money needed to buy the best insurance policy.

Step 1: Decide What You Need to Cover

Deciding what you need covering is the best way that you can save money.  You need to make sure that your policy includes the basics, such as external damage, loss of license and internal issues.  If your policy does not cover these things, you will have a hard time claiming.  You should also make sure that your policy covers breakdown help.

Step 2: Shop Around for a Deal

Don’t settle for the first policy that you come across.  Doing so is a bad move and could mean that you lose out on money.  You should always shop around when looking for truck insurance. You could even play companies off against one another.  For example, if someone offers you a deal, tell their rival about the deal and see whether they can offer you a cheaper deal.  If you do that, you will find the cheapest truck insurance with ease.

Step 3: Use a Comparison Site

When you are shopping around, it is worth using a comparison website so that you can see the difference between policies.  There are loads of different sites that will allow you to compare policies.  Be careful, though, as not all companies are on comparison sites.  Some independent companies prefer not to be on these sites, and so you have to go to them directly to get a quote.  You should spend a lot of time looking for a deal that suits you before you make your decision.

Step 4: Ask Your Seller for Recommendations

When you buy your truck, you need to remember that you are dealing with a professional in the area.  For example, if you get a truck from http://trucks.autotrader.co.uk/ you will speak to an expert.  While you are dealing with this person, you can take advantage of their expertise. Talk to them about your insurance options.  Sometimes sellers have an insurance policy that they can offer you when you buy your truck.  If they do, they will give you a great deal on your first annual policy.  If not, they can likely tell you where you can find the best deals.

How to Get Cheap Truck Insurance 9 Simple Steps How to Get Cheap Truck Insurance: 9 Simple Steps

88x31 How to Get Cheap Truck Insurance: 9 Simple Steps
freightliner-trucks-07 by David Guo, on Flickr.  This work is licensed under a Creative Commons Attribution 2.0 Generic License.

Step 5: Calculate Your Mileage

Before you buy a policy, you need to work out how much mileage you do on a yearly basis.  It is easy to work out your mileage if you kept records of your driving.  It is a little harder, though, if you have no records to browse.  Your insurance company will take an interest in how often you drive and where you drive.  Some people think that they can trick insurers by saying that they drive less than they do.  You will run into real problems if you lie to your insurance provider.  You might find that your lie invalidates your policy later, and so you can no longer make a claim.

Step 6: Take a High excess deal

One simple way to cut the cost of your insurance is by taking a high excess deal.  That means that you pay a high level of excess should you have an accident.  Doing so will mean that your annual policy will be cheap, but if you have an accident, you need to pay a little more than you otherwise would.  You need to be careful with this kind of policy.  Even the safest of drivers have accidents from time to time.  You need to prepare yourself to pay the excess should you need to do so.

Step 7: Get a Fleet policy for all your trucks

If you are lucky enough to own an entire fleet of trucks, you could find that getting a bulk policy saves you money.  You will need to find a specialist insurer to help you get the best deal.  Remember to haggle.  When you have an entire fleet, you have the power.  Companies want big business as it makes them quick money.  If you offer people a bulk order, they should offer you a discount.  If they don’t, move onto another company who will.

Step 8: Pay Your Annual Insurance in One Lump Sum

Most people think that the best way to pay for insurance is in monthly installments.  Whilst monthly installments might be a simple way to spread the cost of your insurance policy, it is by no means the best deal.  In fact, you will find that you can get a huge reduction in your insurance cost if you offer to pay your annual insurance in one lump sum.  That means that you don’t need to pay any interest on your policy.  When you cut out paying any interest, you could find that you pay around 10% less for your total policy.  Many insurers will try and talk you out of paying all at once.  They will tell you that it is easier to spread the cost.  If you have the money, you should ignore them.  Everyone wants you to spend more than you should on their product.

Step 9: Consider the Competition When You Renew

Lastly, when you renew your insurance, you need to make sure that you check out various quotes.  Much of the time, people just go with the same insurer because they feel that they have to or that it is the easiest thing to do.  You can always save money by shopping around, and so you need to see what’s out there before you renew.

Tom
 

Tom is a former accountant turned online entrepreneur. He enjoys writing about finance and accounting topics. His passion is in improving productivity for individuals and helping them save money.

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