Truckers are under financial pressure these days. While demand is high for trucking services, supply chain issues and difficulties in hiring qualified employees are creating cash flow problems for many trucking businesses.
Many are looking for ways to gain control over their truck insurance costs. Paying the premiums of an annual truck insurance policy up front is not an option for most trucking businesses. That’s why many are looking for no down payment commercial truck insurance option.
While there are no real legitimate “no down payment commercial truck insurance” offerings, there are ways to get your costs — and the timing of your premium payments — under control.
Consider paying for your truck insurance monthly, quarterly, or semiannually rather than annually. It will spread out your payments, so you don’t have to pay total costs up front.
Be aware: When you pay your trucker’s insurance premium monthly, quarterly, or semiannually, the first payment may be higher than subsequent ones, which may seem like it includes a down payment. It really isn’t the case. The first payment is more heavily weighted because insurance companies are concerned that clients could stop paying premiums at any point during the coverage year, and they require a cash cushion in case this happens. Also, policies paid on an annual basis are typically cheaper that those paid quarterly or monthly because insurance companies have learned that policies that pay monthly or quarterly are more likely to cancel, especially after a successful claim. So while you may gain control over your cash flow, you could end up paying more for the coverage overall.
Tip: Be careful if a company offers to sell you trucker insurance with no down payment. It’s likely a scam from an illegitimate operation trying to get your business.
The good news: Most reputable insurers will allow you to pay monthly, quarterly or semiannually for commercial truck insurance. Once you make your first payment, you will receive proof of insurance. After you make that first, larger payment, you can rest assured knowing your subsequent premium payments will stay the same for the rest of the year.
Now, let’s take a look at:
- How to save money on commercial truck insurance
- 5 Cheap Insurance Companies for No Down Payment Commercial Truck Insurance
How to save money on commercial truckers insurance
There are many things you can do to reduce your trucker’s insurance premiums. Some of the most impactful ones include:
- Monitor driving records. The cost of commercial truck insurance is directly tied to your driving record and those of the people who work for you. Tickets and citations will increase rates. Always drive safely and within the speed limit. Train the people who work for you on safe driving habits and incentivize them to follow the rules of the road. Paying them for maintaining clean driving records is much cheaper than paying higher insurance rates.
- Improve your credit. Many insurers assign risk scores to customers and prospective ones based on several factors, including age, marital status, and credit score. Insurance companies believe that customers with lower credit ratings tend to be riskier drivers. Many states allow insurers to do this, although some have outlawed it. If it’s a practice in your state, paying your bills on-time can help you to save money on truck insurance.
- Lease onto a large carrier. Many truckers value their independence. However, if you want to save on trucker insurance premiums it could make sense to give up on some of that independence and lease on with a large carrier. In most cases, they are able to pass along substantial savings on your truck insurance premiums.
- Seek out association rates. Another option for reducing premiums is to join a trucking association that offers members access to discounted group or association insurance rates as a part of being a member. Tip: Before joining an association check whether the savings you get on insurance premiums will offset the membership cost.
- Avoid accidents. Truckers that don’t get into accidents pay less for truck insurance than those who have made claims on their policies. Take proactive steps to avoid accidents by never speeding, tailgating, or driving recklessly. Also, avoid pushing yourself to the limit when driving by getting plenty of sleep and taking a break when you feel fatigued or stressed out. Also, put the cellphone aside while driving. Enforce these same safety practices with the people who work for you. It’s a proven way to gain control over trucker insurance costs.
- Hire safe drivers. If you employ other drivers with poor driving records or ones with limited experience, it will increase your insurance rates. You may pay less to have them drive for you, but that savings will be more than offset by higher insurance costs. Even during this time when it can be challenging to find good drivers, it’s smart to hold out and only hire the best and safest people.
- Follow rules. United States Department of Transportation (DOT) trucking rules and regulations can impact your insurance rates. Complying with roadside inspections, compliance checks, and safety audits will help save you on your truck premiums. Insurance companies routinely pull compliance data when determining insurance rates. If you and everyone who works for you complies with DOT rules, you’ll pay less for insurance.
- Implement a written safety policy. Having a written policy and enforcing it demonstrates to your workers and insurance company that you care about safety. It should include information about avoiding accidents, driving safely, and preventing drinking and substance abuse.
- Increase insurance deductibles. The higher the deductible, the lower your premium cost. However, if money is tight, be aware that you must always have enough cash on hand to cover your deductible. If you don’t, you won’t be able to get your vehicle repaired, which will further cut into your livelihood.
- Pay your insurance annually in full. As covered in the previous section, paying your truck insurance monthly, quarterly, or semiannually can help you with your cash flow issues. However, it will cost you more over the long term. If you genuinely want to lower costs, pay your premiums once a year.
- Take advantage of discounts. Discounts can lower insurance rates significantly. If an insurer doesn’t offer them to you when getting a quote, ask about them.
- Bundle your coverage. It’s likely that if your truck insurer provides more of your business coverage, they’ll offer you lower rates than if you only have a single policy with them.
- Get competitive bids. Don’t make the common mistake of only getting a single commercial trucker insurance quote from one provider. Get three or more and compare coverages and premium prices. That way, you can feel confident that you have the best package for your trucking business.
5 Cheap Insurance Companies for No Down Payment Commercial Truck Insurance
The following companies offer payment flexibility and more for truckers experiencing a cash crunch.
- CoverWallet: Best for truckers who want to compare several quotes to find the cheapest commercial truck insurance
- Progressive: Best for good discounts on commercial truck insurance
- State Farm: Best for partnering with truckers on things like payment scheduling
- Sentry: Best for personalized service
- Nationwide: Best for affordable small truck insurance
CoverWallet: Best for truckers who want to compare several quotes to find the cheapest commercial truck insurance
CoverWallet is a cutting-edge insurance provider. The firm has developed its own state-of-the-art platform, based on its proprietary algorithms, to ensure it is able to connect truckers with the commercial truck and other business insurance they need at the most reasonable price. The platform allows truckers to get quotes from several providers at once, making it possible to compare coverage and premium prices from highly reputable insurers all on a single screen.
The firm’s experts have used their extensive experience to make sure you only have to input the information needed to generate quick and accurate quotes. The entire process should take less than ten minutes, even for coverage as complex as commercial truck insurance.
Once you get your quote, CoverWallet makes it easy to purchase a commercial truck policy online or through an agent. When you get your commercial truck policy through CoverWallet, it’s simple to manage your coverage online, including downloading a certificate of insurance, filing a claim, renewing your insurance, and more. This is especially great for truckers who spend a lot of time out on the road.
Progressive: Best for good discounts on commercial truck insurance
Progressive is famous for its discounts, which could help you save on your commercial truck insurance. You can earn discounts for things like:
- Having significant driving experience
- Earning a CDL certification
- Paying your premium in full rather than monthly or quarterly
- Bundling your commercial truck coverage with other coverage
- Allowing Progressive to electronically monitor your driving habits
- Agreeing to autopay.
Beyond discounts, it’s important to know that Progressive is a reputable company which has been offering vehicle insurance for more than 80 years and is the top commercial vehicle insurer in the United States. That means it’s doing something right. The company is known for its flexibility, great rates, and top-tier service.
Progressive is able to cover anything from a small single truck to a complete fleet of semis and offers flexible payment timing.
State Farm: Best for partnering with truckers on things like payment scheduling
State Farm is willing to work with its customers to meet their needs. It’s why it has earned top customer satisfaction ratings from J.D. Powers, a company that monitors and reports on the service offered by companies in the insurance industry.
Even though the company provides top level service, commercial truck coverage from State Farm is quite affordable because the firm offers discounts for things like:
- Insuring multiple vehicles
- Driving accident free
- Installing anti-theft devices
- And more.
You can’t purchase commercial truck insurance direct from State Farm, but it does have a wide network of agents across the United States, so it should be easy to find one in your area.
You can rest assured knowing State Farm has been in business since 1935 and is a solid and stable company.
Another plus for truckers: State Farm is known for its simple claims process, which helps get trucks back on the road quickly after an accident.
Sentry: Best for personalized service
Compared with many of the insurers on this list, Sentry is relatively small, which makes it possible for it to offer a more personalized level of service, especially when it comes time to build a policy and make a claim. If you have unique commercial truck insurance needs, including flexible payment options, your agent may be able to work with Sentry to get you exactly what you want.
Sentry has been in business since 1904 and has a solid reputation.
If you choose Sentry as your commercial truck insurance provider, you can expect:
- Flexible coverage options
- An experienced claims team that understands trucking
- Certified safety directors with more than 20 years of industry experience.
Sentry is committed to the trucking industry. The company is an allied member of the American Trucking Association and several other industry groups. It currently insures more than 37,000 truckers.
Another plus: Sentry has received an A+ rating from A.M. Best, an insurance rating agency, 30 years in a row.
Nationwide: Best for affordable small truck insurance
Nationwide is a highly reputable insurance company and one of the oldest vehicle insurers in the United States. It provides a high level of customer service and has earned the top customer satisfaction rating from J.D. Powers, a company that monitors insurers and reports on them.
Nationwide specializes in insuring smaller trucks and doesn’t cover semis or tractor trailers. Still, it’s worth asking your agent to get a quote from the company because it offers significant discounts that could save you money.