What Insurance Underwriters Look for in a Thriving Trucking Business

When underwriting for commercial trucking insurance policies, insurance companies will pay attention to factors that indicate your likelihood of filing a commercial insurance claim. If you have experienced employees, well-maintained vehicles, rigorous safety protocols and good credit, you can generally expect to spend less on your monthly insurance premiums.

Keep reading to learn more about insurance underwriters and trucking businesses, including some practical steps you can take to save money on commercial insurance.

What Do Underwriters Look for When Underwriting for Commercial Trucking Insurance?

Read the following sections for an in-depth overview of what insurance underwriters look for in trucking businesses.

1. Driver History and Safety Records

A trucker’s experience and driving record are among the biggest indicators of their likelihood of getting into an accident, making them some of the most important factors for insurance companies to consider when setting commercial auto insurance rates. For example, if the majority of your employees have had a commercial driver’s license for one year or less, you will likely pay more than a company where most employees have at least a decade of experience.

Along with looking at the number of years your truckers have been driving professionally, insurers will also consider whether they have clean driving records. For this reason, you should be wary of hiring drivers who have caused car crashes or committed major traffic violations within the past few years, as they could potentially lead to spikes in your insurance premiums.

2. Fleet Condition and Overall Maintenance

Your insurance company may want to inspect your fleet or evaluate your regular maintenance procedures because poorly maintained vehicles or those with a history of maintenance-related issues may be viewed as riskier to insure.^[1]

Even though commercial auto insurance doesn’t cover damage to your vehicle caused by poor maintenance, your auto liability coverage may still have to step in if your truck experiences a mechanical breakdown that leads to a crash that injures another driver or damages their property.

You should note that your insurer may pay attention to the size of your trucks, as vehicles with the potential to cause more damage in accidents may require higher liability insurance rates. If your fleet insurance policy includes collision and comprehensive coverage for physical damage, the value of your trucks will also be taken into account. The more expensive your vehicles are, the higher your premiums will generally be, since your insurance company will have to pay out more in the event of a total loss.

3. Operational Safety Protocols

Trucking is generally considered a high-risk industry for insurance purposes due to the fact that employees are regularly exposed to the potential for an automobile accident, so it’s crucial to implement risk mitigation protocols that can lower your odds of needing to file an insurance claim and keep your insurance prices manageable.

For example, a 2024 business survey found that 25% of employees involved in accidents while driving for work were distracted by a mobile device or some other type of technology at the time of the collision.^[2] As a result, you could potentially get a commercial auto insurance discount by implementing a policy requiring drivers to wear wireless earpieces so they can answer phone calls without taking their eyes off the road.

Safety procedures should also be in place for employees who aren’t on the road. For example, if you establish rigorous employee training for loading dock workers, you can minimize workplace injuries and potentially secure a discounted rate on your workers’ compensation insurance policy, as well.

4. Cargo Type and Routes

The specifics of how your business operates — including what items you carry and where you deliver them — will also be of interest to your insurance underwriter. For example, a business that transports hazardous waste will likely have higher insurance premiums than one that transports produce. Meanwhile, if you only haul freight within your state, you will likely pay less than a business that hauls freight across the country.

5. Financial Stability of the Business

Keeping your trucking business financially stable may benefit you during the insurance underwriting process. Freelance owner-operators, motor carriers and other trucking companies with poor credit may be viewed as more likely to file commercial insurance claims, while maintaining a good business credit score can instead lead to lower insurance premiums.^[3]

6. Insurance History and Claims

Finally, commercial insurance companies will take a look at your prior insurance history when determining the risk of covering your business. You may be viewed as a high risk to insure if you have no prior insurance history or have experienced a lapse in coverage. Likewise, you can expect to pay more for coverage if you have had to file numerous business insurance claims within the span of a few years, since you may be viewed as more likely to file a claim again.