Should one always go for cheap truck fleet insurance? Many truck fleet owners in Australia often consider the cost of premiums they pay for insurance. With the number of insurers offering various types of policy and coverage, many of these business-oriented truckies enjoy the freedom to customize their coverage options. Like any other business, premium cost is still the basis for comparison and often, Aussies have the ability to go for the cheapest.
While it is logical on a businessman’s perspective to shop around for the best insurance deals for their fleet, financial advisers and insurance agents alike highly recommend thinking of the long-term perspective. Here are some of the reasons why going the cheap way is not always the best route when it comes to truck fleet insurance:
1. Claims Nightmare. One of the continuous headaches of cheap truck fleet insurance rests on the ease and convenience of filing claims. Imagine one of your truck drivers meeting an accident only to learn that your insurer cannot be reached after 5. Many reliable insurers are often more expensive because of their add-on services. From round-the-clock assistance to ease in claims procedure and escalation, waiting time for one’s claims can be cut shorter lessening the burden to you and your trucking business. In some cases, an insurer may assign a dedicated claims executive to assist in your needs.
2. Coverage Horrors. The contention of cheap truck fleet insurance often can be found in the fine print. Many trucking operators have gone down this route only to realize the horrors of going cheap in the end. While cheap premiums may mean savings in the short-term perspective, being embroiled in catastrophic accidents involving not just damage to your truck but also to that of private properties can easily put your business careening on a cliff. Instead of agreeing to pay a higher excess amount, why not go for a manageable premium and enjoying the perks of comprehensive worry-free coverage. So always take time to ask the worst-case scenario when talking to an agent to ensure security of your hard-earned investments.
3. Lack of Extra Mile Benefits. Cheap insurance policies are often littered with limitations and exclusions. When operating a trucking company, it is essential to purchase insurance on a needs-based criterion. Short haul fleet, for instance, require different level of protection than long haul trucking businesses, so does local operators from regional ones. Many reliable insurers often offer global coverage, free towing services, or on-the-spot repair services to offer extra mile benefits. Some may even offer free defensive driving training or safety training for truck drivers in a region to help minimize risks.
Bottom line is: Going for cheap truck fleet insurance is not always the best route. What could have been a cost-cutting initiative may have your business crawling for dear life when disaster strikes. In everything else, always consider your fleet’s unique needs and go for an insurance policy or policies that fit your budget.