February 15, 2017

Tips On Finding Good Commercial Trucking, Cargo And Trailer Interchange Insurance

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By Ed Sneineh

Every one / company who owns a commercial truck will have to have a commercial trucking insurance coverage for it before taking the truck to the road. Such expenses can cause an impact on a person’s or company’s financial status. In the Chicago metro area, a primary liability trucking policy with cargo and interchange coverage may average about $8,000 per year. However, a person can opt to look for a insurance company that will not charge them a lot. It is possible for someone to find a cheap trucking company, but one needs to understand that cheaper rates do not necessarily mean good services.

A commercial truck driver works under more strict rules and laws, and has obligations that outnumber that of a normal driver. They are usually transporting freight, which can be quite a liability, plus other duties that force them to drive keenly. It is every truck drivers nightmare to cause an accident without having the necessary insurance. The impact of such a situation will negatively impact their career, as well as cause harm to public.

One of the things a person should do when looking for good insurance is to shop. It is not wise to try and find an agent without having the necessary information about the service you are looking for. The information will guide someone on what type of package to settle for. Remember that the trucking insurance industry is always changing, lots of companies come to the market, and lots of them leave, constantly. Therefore, you will almost always find a better deal, with new comers that want to try a piece of the lucrative trucking insurance premiums. It is safe to know the average costs of insurance as well as the details of the package. The only way to come about such information is by carrying out thorough research beforehand.

There are a number of things that need to be looked at before shopping for a good insurance company. You need first to decide what kind of insurance coverage you need. Coverages relevant to most trucking policies may include:

1. Primary Liability Insurance. Primary liability for most truckers ranges from $750,000 to $1,000,000 for bodily injury and property damages. Truckers who cross state borders are mandated by the FHWA (Federal Highway Administration) to carry limits based on the kind of materials hauled. For examples, certain HAZMAT truckers or truckers that haul hazardous materials are required to carry at least $1 million in auto liability.

2. Cargo Coverage: Like primary auto liability, certain truckers that require state and federal filings are required by law to maintain certain amounts of cargo (coverage of the merchandise that is being hauled.) Most truckers carry between $100,000 to $250,000 although the limits may be significantly less (ie $15,000).

3. Trailer Interchange insurance. Truckers may have to purchase physical damage coverage on the trailer that they haul. The limit may cover trailers that belong to others while it is in use by the insured trucker, or the trailer that is owned by the insured trucker while it is in use by other truckers.

4, Physical Damage on Truck/ Own Trailer. This is collision and comprehensive on own truck/tractor or trailer.

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5. General Liability: Provides Commercial General Liability for the business itself, not the trucks.

6. Workers Compensation. Covers employees/ drivers for medical payment & disability income for any work related injury or disease.

7. Occupational Accidents. Provides limited medical payment and limited disability income benefits for any work related injuries.

8. Umbrella Coverage. Provides extra liability coverage above and beyond the underlining General Liability, Auto Liability and Workers Compensation.

9. Hired and Non-owned Auto: Provides coverage for auto hired by the insured, or autos that are not owned by the insured when they are used in connection with the Insured’s operations (not easy to get for a small commercial trucking business.)

10. Towing and Rental: Towing provides coverage for towing the disabled truck when involved in a covered loss (ie accident, theft, etc.) Rental coverage provides for limited payment to rent similar truck in the event the insured truck is disabled because of a covered loss.

When all the important information has been covered, it is now easier to find the right company/ agent. The next step will be to look at the insurance quotes in the market. This can easily be done via the Internet by visiting various websites that offer the service. There are so many trucking insurance companies who offer their services online, looking through the options will help a person come up with a list of insurers they can work with.

Fill out the forms of potential insurers and they are bound to send a quote. In the long run, a person gets so many quotations from several companies/ brokers. This makes it easy for someone to choose the best alternative for them. However, there are other factors that will influence the overall decision.

Once a person has all the quotes they need, they can conduct a thorough review on each one of them. Do not decide on a quote just because their rates are low, the best quote to choose is one that offers the best coverage that you need for money paid. There is always a reason why an agent offers cheaper quotes than the others, find out why and decide whether you still want to work with them. Compare quotes that have similar charges in relation to the covers offered. The following are the factors that affect the premium:

1. Garaging Address: Some companies look at the ZIP Code to price your policy, while other companies may look at the County. Remember always to make a distinction between your mailing address and the garaging address. This is a significant issue here in Chicago, where the ZIP codes of the City is 606xx. Truckers who live in the city and garage their trucks in a suburban area may end up being over charged by companies that use the ZIP codes for rating (Progressive Insurance is an example of these companies.)

2. Credit of Applicant. Some trucking companies are credit driven. Truck applicants with better credit have better prices. Example: Progressive Insurance.

3. CDL Experience/ Operator Age: While many companies will not even consider you if you have less than 2 years of CDL experience (Example: Canal Insurance) other companies will penalize you for having less experience, or if your MVR has blemishes. While most companies will not insure anyone under age 21, there is normally a surcharge for drivers under age 25.

4. Prior Insurance: Many companies will give you discounts if you show proof of prior insurance, without any lapse. Example: Progressive Insurance.

5. Limits of insurance on your primary liability, cargo and trailer interchange. The more coverage you ask for the more money you have to pay.

6. Radius of Operations: There are no rules here. Some companies prefer short range (up to 300 miles) truckers while other will penalize local truckers (especially if the trucking business is situated in a large metropolitan area like Chicago or New York.) Progressive Insurance, for instance, does not allow over 500 miles for radius of operations, but may allow it on restricted basis. Other companies (such as Canal) may give much better rate for longer range operations.

7. Merchandise Hauled. Certain merchandise (electronics, expensive clothes) are more expensive to insure that, for example paper products, or regular household products. Refrigerated products are also more expensive to insure than plastic products.

In the event that this is the first time a truck is being insured, it is important to include riders in the cover. This option can be offered at a higher charge than the normal cover. It is usually cheaper to pay the insurance company annually, this is because there are certain discounts offered when the payment is made in bulk. This option is not offered by all the agents, so you need to ask about it before committing to a certain commercial trucking insurance.

About the Author: Learn more ideas, tips and tricks about the commercial trucking, cargo and trailer insurance from a former college educator of insurance & finance with over 20 years experience in the insurance industry. Visit Insurance Navy’s website and browse the commercial, business and car insurance blog for educated ideas that can save you lots of time and money.


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September 21, 2016

Persuade With Logic, Evidence Or Authority?

By Robert Middleton

There’s more than one way to persuade a person (or your spouse).

I was reminded of this again today as I was hiking with my wife, Saroj, in Zion National Park. And not just any old hike, but up the Narrows, which is a hike literally up in the river that winds it’s way through the canyon.

You get wet but that is more than compensated by the amazing scenery. On either side of us were magnificent, 1,500-foot red sandstone cliffs rising straight out of the water.

In one section that actually overhangs the river, the rock is black, not red. I explained to Saroj that this was probably due to the fact that the dampness of the rock and lack of sun supports the growth of mildew and bacteria that ultimately stains the red rock black. Makes sense, right?

Well, she wasn’t too sure. She thought it was a different kind of rock. So I pointed out that the black blended right into the red. You could see that it was clearly the same rock.

If at that moment, a geologist had waded up the river beside us and confirmed my assertion, I’m quite sure she would have finally believed me (or not, depending on what he said).

You see, I was using logic and evidence to make my case. But Saroj much prefers authority to determine if a thing is true on not. (I know you’re brilliant at marketing, but what do you really know about rocks, Sweetie?)

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This, of course, is the source of many an argument. But that’s another story…

The fact is, different people are persuaded by different things. I am easily persuaded by logic and observable evidence, while others much prefer to get confirmation from someone who is certified to be an expert.

This is something very useful to consider when you’re trying to persuade someone of something, such as trying to get a prospect to see the value of your services.

What should you use? Logic, evidence or authority?

Simple, use all three in as many ways as you possibly can. Let’s take the example of a firm, Turnaround Wizards, who is working at persuading a client that they can get the job done.

1. Use logic to build a sound, credible argument:

Explain the difference that your service makes by comparing it to other things they are familiar with. Build your argument one step at a time so that it holds together and makes logical sense.

“Turnaround Wizards offers a one-year program instead of a weekend workshop because the learning really sticks when you apply our models, evaluate the results and then fine tune performance. It’s like learning anything, a musical instrument, a language or a professional skill. None of those come instantly and neither does the ability to consistently meet or exceed your business targets.”

2. Use evidence to show how your service actually works:

One of the best ways to do this is to cite before and after examples. The use of case studies, especially with similar companies, is very persuasive because it clearly demonstrates that your program works, through actual, observable results.

“A large manufacturing division was losing over $10OK per month. The workers were on the verge of revolt when our performance system was introduced. But once they started to apply the Turnaround Wizard program, things turned around quickly. They are now the top performing division in their company.”

3. Use authority to add weight and credibility:

For some people, logic and evidence only gets you so far. After all, you’re the one presenting that logic and evidence and you have a built-in bias. But a testimonial or endorsement from a credible source is very persuasive, simply because it’s from a third party who is more objective.

“We did a test program with Turnaround Wizards and, although somewhat skeptical at first, were very impressed with the final results. The profit gains were significant. The whole attitude of the division also turned around. We were so happy with their performance that we are bringing them into all our divisions.”

By using all three means of persuasion, don’t you think the prospect will be much closer to signing your contract?

Whether you’re trying to persuade your wife why red rocks turn black in the Narrows of Zion National Park or attempting to persuade a potential client to do business with you, I recommend you use all three – logic, evidence and performance – every chance you get.

I’m still looking for that geologist!

About the Author: Robert Middleton, the owner of Action Plan Marketing, has been helping Independent Professionals be better marketers since 1984. On his web site

find valuable resources, products and programs for attracting more clients. Get a free copy of his Marketing Plan Sart-Up Kit.


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