car carriers are used to transport vehicles for body shops, car dealerships, repossession companies and more. these trucks are essential in the transportation industry and without them, we wouldn’t be able to leave our house!
As you can imagine, starting a car transport business can be very profitable and valuable. however, you should also consider the amount of risk involved. For example, car transporters are very expensive trucks and transport vehicles worth tens of thousands of dollars. if you were to have an accident, you could be facing some very expensive repairs and damages.
Reading: How much is insurance for a car hauler
so, to avoid all the headaches, you need to make sure your car carrier is insured. With the help of insurance, you can protect your assets and rest assured that you will be taken care of in the event of an unwanted incident.
So, in this article, we’ll look at the cost of auto transport insurance and the various factors that can affect your rates. let’s get started.
how much does auto transport insurance cost?
Several factors contribute to the cost of auto transport insurance. Generally, these vehicles tend to be more expensive to insure due to the long distances they typically travel, the number of cars they carry, and their weight.
On average, auto transport insurance can cost you between $800 and $1,400 a month, depending on the coverage you need. Of course, these rates vary depending on the insurance company you choose to go with.
See also: FAQs About Insurance Claims Amid Coronavirus Pandemic
Here is a list of some of the factors that affect your auto transport insurance rates:
what affects the cost of auto transport insurance?
the number of trucks you have
The more trucks you have, the more you pay for insurance. All of your auto haulers need insurance, so expect your premiums to go up when you add one or more trucks to your policy. therefore, the size of the fleet has a large impact on the cost of your insurance.
your claims history
Before issuing you a quote, the insurance company will review your loss history. if you have a lot of claims against you, they will consider you high risk. therefore, you may have to pay more for your auto transport insurance. in fact, some companies may even refuse to insure you if you have too many claims.
If you have a clean record, you may be able to get a discount on your insurance. This is because no claims submitted indicate to your insurer that you take the safety of your fleet very seriously.
the type of business you run
As stated above, car transport trucks are used in many different businesses. Your rates will depend on the type of work you do. For example, if you’re hauling new cars for a car dealership, you’ll likely pay more for insurance than hauling wrecked or damaged vehicles for a body shop.
so your insurer will want to know what kind of business you have to determine your rates.
what you are transporting
See also: 9 Easy & Effective Ways to Get More Insurance Referrals | Nectar
What you’re transporting is also an important factor to consider when it comes to auto carrier insurance rates. the more expensive your cargo is, the more you will end up paying for insurance. For example, if you haul new cars, you’ll likely pay higher premiums than someone who hauls used cars.
your drivers
The drivers you hire should be experienced and have a clean driving record. therefore, having a new driver in business can cost you more, as well as having someone with a lot of speeding tickets and duis on their record.
so if one of your truckers has multiple traffic violations, you can expect to pay more for insurance. this indicates to the insurer that the driver is reckless and is more likely to cause an accident. which ultimately means more claims filed.
To avoid problems with your drivers, run a thorough background check and require regularly scheduled training.
source
