With the New Year just around the corner, it seems fitting to discuss renewal. Although, maybe not the type you’re thinking of. This post focuses on what you need to expect as your insurance renewal date approaches.
1. The Cost of Your Insurance May Increase.
The ATRI showed that insurance premium costs rose from 7.1 cents per mile in 2014 to 9.2 cents in 2015. Such an increase can be related to a number of factors:
- Insurance Rates- Unfortunately, a trucking insurance agent has no control over insurance rates. As of late, high-profile trucking accidents—think Tracy Morgan—have resulted in big payouts. These payouts are then being diluted throughout insureds’ premiums.
- Claims – Even if your record has remained clean for over 20 years, one accident can cause your premium to increase.
- Driving Record – Insurance carriers examine any and all drivers listed on a policy. Drivers who’ve had a fair share of accidents or citations in the past are going to cost you more.
- Driver / Vehicle Lists Increased – If you’re company is growing, then so will your insurance premium. It’s as simple as that.
- Fleet Turnover – While newer tractors sport fuel efficiency and advanced technologies, these luxuries come at a cost. The higher the value of your trucking equipment, the higher your physical damage coverage will be.
2.You’ll Get Calls from Other Insurance Agencies.
Your insurance information is public, which means other agencies can see when your policy is up for renewal. Don’t be surprised if 90 days before your renewal you begin to receive calls or mailings from other agencies offering to quote your insurance.
While the promise of a lower premium can seem enticing, it’s always best to speak to your current agent first if you would like to shop your policy. There’s a chance your agent has access to the same markets, and information can get convoluted if two or more agencies are attempting to quote your policy with the same markets. Plus, if you don’t have any complaints about your insurance agency, why fix something that’s not broken?
However, if your business is not valued by your current trucking insurance agency or you continuously receive your renewal rate last minute, then maybe it is time to explore other options.
3.Non-Renewal ≠ Cancellation.
It’s 30 – 90 days before your trucking insurance renewal and you’ve just received a non-renewal notice. The good news is that a non-renewal typically will not negatively impact your ability to find insurance.
Unlike a cancellation notice, a non-renewal notice is usually issued on part of a change with the insurance carrier. For example, the insurance carrier may no longer write in your state or has left the market entirely (i.e., Zurich Insurance Group AG and American International Group Inc).
However, a non-renewal will impact your ability to find new insurance if it was a result of late- or non-payment, or an increase in the severity or frequency of claims.
If you’re insured direct through the carrier, navigating a non-renewal can be tricky. Since the carrier is no longer choosing to write your insurance, it is now your responsibility to either find a new carrier or find an agent to help you do so.
However, if you’re insured through an insurance agency, your agent should be able to re-market your policy to carriers with whom s/he believes your policy will best fit.