The Truckers Insurance Renewal Guide
Like everything else in trucking right now, we're seeing the insurance market really tighten up.
Companies like Great West, who historically have been a safe haven from rate hikes, are changing their underwriting guidelines. Their model is changing and they are non-renewing risks based on CAB/ISS Scores...regardless of loss history!
Insurance companies like National Casualty/Scottsdale are exiting the market completely.
Progressive renewals are a toss up...some may be flat and some may be seeing 70% increases!
All this to say, "shopping" the market broadly is a necessity for trucking operations.
However; you don't need 5 agents muddying the markets to do this. That is actually counter-productive for your operation.
You very well may not need any agent, other than your current agent, to "shop" the market for you.
The purpose of this guide is to give trucking operations the tools they need to take control of their insurance policy and renewal process. I’m intentionally not going deep into the weeds here. My objective is to show you simple steps YOU can implement now. What’s good for truckers is good for me as a trucking agent. The more of you that stay in business, the more opportunity I have to possibly partner with you at some point. The trucking industry is full of good, salt of the earth people. And I want to do my part to help the industry.
STEP ONE: Renewal Marketing Strategy Review
This step is critical! It sets the stage for your renewal, and you will use this when interviewing other potential agents (you know those 50+ calls you get a day leading up to renewal). An effective renewal strategy review should be held with your current agent at least 120 days out from your renewal date.
During this review, you’ll discuss your operation expectations for the next policy term.
A quick checklist of items to discuss (this is not a complete list, but gives you an idea):
- Commodities transported
- Radius of operation
- Equipment values
- Safety / training / hiring program
With this information, your agent will provide you with a list of insurance companies they will be marketing your operation to (shopping), along with an average of rates they’ve been seeing from them. There is no one size fits all insurance rate as you know, but your agent can provide you with a real time market outlook and what you can expect, based on your company’s performance (loss history, CAB scores, etc.)
STEP TWO: Interview Potential Agents
Step one is key to how you handle the insane number of emails and phone calls you receive from agents wanting to solicit your business. Most quality trucking agents are working with most of the same insurance companies. There are going to be insurance companies that some agents have access to, that others may not. Que in your renewal strategy in place with your current agent. When you do take a meeting with another agent, they should provide you with the same marketing strategy as your current agent (not the same insurance companies necessarily, but the same format of insurance companies they would approach for you). If this is an agent you feel comfortable with, you now can cross reference insurance company options and decide if going through the application process with another agent makes sense. DO NOT tolerate vagueness when discussing possible insurance companies. This applies to your current agent and potential new agents. Transparency is key to YOUR insurance renewal.
Conclusion:
It’s really that simple. As stated above, transparency is key to the process. Transparency from your current agent on who they are shopping you with and the rates you can expect. Transparency from the soliciting agents on who they would shop you with and the rates you can expect.
Many agents live in fear of losing you as a customer, so they hold renewal information close. You, as a business owner, deserve better. My hope is that this brief guide will find those operations needing help and set you on the path to take control of your insurance renewal process.
If you want to have a more in depth discussion on your current situation, use the link below to schedule a call at your convenience.