At National Truck League we are very familiar with the concerns many trucker drivers have regarding the cost of their insurance premiums. We often get asked how insurance rates are calculated and what can be done to keep premiums down. Although every insurance company has a slightly different formula for calculating their rates, the common factors which affect insurance costs for trucker drivers include the type of materials being hauled, where they’re being hauled to and the experience level and record of the driver.
As many truck drivers are aware hauling high value, dangerous or combustible goods can have a significant impact on your insurance premiums. Where you haul your loads is also considered when calculating insurance costs as provincial and state laws can have a significant impact on the cost of a claim. It’s important to discuss these factors with your insurance broker to ensure you understand what your premiums will be based on the type of business you are operating.
Getting insurance protection at an affordable price in the transportation industry often comes down to your driver record and the condition of your CVOR. Where you operate your business and what you’re hauling can often be strategically changed, however, if your CVOR is mismanaged it can take years to improve your rating. Therefore, it is exceptionally important for Drivers and Carriers to protect their CVORs in order to receive the most competitive insurance rates.
There are a few key things to remember to ensure your CVOR is protected:
Understand the System
In order to properly protect your CVOR it’s important to understand how the point system works. There are many resources available online which explain the extensive list of point assignments for various infractions and how best to handle them. For Carriers, it can be very beneficial to provide training to your full organization to ensure your Drivers, management and safety compliance team avoid costly mistakes and understand the importance of protecting the company’s CVOR.
It’s important for all truck drivers to defend CVOR infractions and tickets to ensure there is minimal harm to your record. Carriers should have an effective system in place for Drivers to report tickets so they can be properly documented and legally reviewed. Many Owner/Operators and Drivers mistakenly believe that as long as they pay their ticket for an infraction their Carrier will never find out. The truth is that even if a Carrier doesn’t regularly run a CVOR Level ll report the infraction or ticket will still surface during their Annual Review.
The key to managing your CVOR is to monitor your reports and keep a close eye on your rating. The practices that lead to better scores typically result in fewer accidents and can make a big difference to your costs. Carriers should regularly run CVOR Level ll reports to ensure their Drivers are compliant with policies and that infractions are being properly regulated.
Your insurance broker can be a great resource and will be able to provide advice specific to your operation on how to keep your costs down. When purchasing any insurance it is important to work with an experienced, reputable broker. For over 25 years National Truck League has been providing industry leading coverage and peace of mind to truckers across Canada. We are always pleased to review available coverage options with our clients based on their changing needs to help them ensure they have adequate protection at a competitive price for themselves, their family and their business.