Have some difficulties to find out whether to choose insurance on trucks vs cars? Read our guide here at typestrucks.com.
When you own an auto business, you’ll have to insure all of your fleets. Now, if you own both cars and trucks, you’ll probably start to look for more information about insurance on trucks vs cars. Today, you can research more about insurance rates and easily take some comparisons between them. Although, you might have noticed that pickup trucks insurance might be more expensive than insurance for cars. However, it’s actually more complex than just taking comparisons between insurance rates on trucks vs cars based on vehicle’s type.
There are a lot more factors to take into account when comparing insurance on trucks vs cars. The final cost of your auto insurance will depend on a plethora of other factors relating to the car and the driver. The brand and type of the car or truck is important, but your driving history, age, and claim history can have a big impact on the total cost. Find out more by reading our guide below.
Insurance On Trucks vs Cars, Which One is More Expensive
As a fleet owner, you will have to consider which insurance offer you should pursue first. It’s also important to compare insurance rates on trucks vs cars. Generally speaking, truck insurances is usually more expensive than cars. For example, pickup trucks insurance is definitely more expensive than if you insure a Ford sedan car. There is an approximately $102 monthly difference between pickup truck and car insurance.
Most companies think that the high cost of insurance for pickup trucks is due to several reasons. The first one is, you’ll most likely use your pickup trucks much more frequently than you use cars for business purposes. Your pickup’s size and weight make it impossible to forecast how much damage it will cause. A claim for property damage may be more likely when an accident occurs. In this sense, insurance providers think that insuring trucks is riskier than insuring cars. Therefore, they set much higher price for insurance for pickup trucks.
But then again, it might also depend on which type of car or truck you’re using. For example, According to Insure.com, the average yearly cost of commercial insurance for trucks in the United States in 2019 was $1,750, while the cost was $1,662 for pickup trucks. Both numbers are below the national average for vehicle insurance. According to Car Insurance Comparison, the average premium for an SUV’s insurance in 2020 was $2,340. This was more expensive than the typical auto insurance rate.
Further investigation reveals that the annual average cost commercial insurance for trucks and cars alike can be significantly influenced by the cost of repairs and crash ratings. Because the cost of repairs and replacement is higher than that of other vehicles, manufacturers of more expensive models frequently produce cars and trucks that are more expensive to insure. Crash ratings can be used to determine whether a car will be significantly damaged in an accident or whether the occupants will be adequately protected.
Also, apparently there are several factors that came to play when it comes to insurance rates on trucks vs cars. While some of these variables are solely dependent on the vehicle, others rest on the driver’s knowledge. These several factors are used to provide a risk estimate that insurance companies use to calculate auto insurance prices for a client. This risk assessment analyzes the likelihood that any motorist will make a claim as well as the expected cost of such claims. Although the insurance firms are unable to predict the future, these algorithms are based on real-world statistics and have a history of improving with time. Several factors that affecting the insurance prices are:
- Model and make of the truck or car
- The vehicle’s age
- The driver’s driving record
- The driver’s age
- State where you live in
- Vehicle insurance’s history
- Insurance company you’re applying
- Credit score
- Your vehicle’s insurance history
Best Insurance Companies for Trucks and Cars
Now that you know the main factors that differentiate insurance rates on trucks vs cars, it’s time to find out about the best insurance companies which provide the best auto coverage for your fleets. Read our recommendation below!
Progressive is one of the insurance companies for trucks that also provide coverages for cars. Owner-operators, motor carriers, and private carriers are the areas of expertise for Progressive. For at over 40 years, the insurance has offered truckers coverage. General liability, non-trucking liability, rental reimbursement, trailer interchange, and cargo insurance are all offered by the company, along with state and federal filings that will allow you to demonstrate your insurance coverage.
Additionally, they have a strong department for large truck claims. Progressive is tough to beat in terms of features. Their own adjusters handle the processing of all claims internally, and they offer a wide range of coverages. However, they only received a 1-star rating from the Better Business Bureau for their customer service, which leaves much to be desired. If you’re planning to purchase a policy from Progressive, you must contact their agent first.
If you’re looking for one of insurance companies for trucks only, EIB Direct will provide you with all of their services. Compared to Progressive, EIB Direct is less known, but that shouldn’t deter you from looking for what they offer. EIB Direct, also known as Evolution Insurance Brokers, specialized in trucking insurance, and covers both long- and short-haul trucks, fleets, motor truck freight, hired and unhired vehicles, physical damage, and even non-owned trailer liabilities for businesses who rent or lease trailers. They have partnered with such prestigious insurers, and the coverage exceeds the $750,000 federal restrictions.
However, EIB occasionally has higher premiums than other insurers. However, EIB should be taken into consideration as a potential choice for people who are unable to obtain a basic commercial trucking policy with a more conventional insurance provider. The other downside of this insurance company is that they are quite often ignoring customers’ complaints. Due to its awful service, EIB Direct is given C+ rating from Better Business Bureau.
Hopefully our guide provide the answers you need regarding insurance on trucks vs cars. Looking for the right vehicle insurance for you might need some work. But in the end of the day, it will feel all worth it.