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Negotiating Commercial Truck Insurance Tell Your Driver Data Story

Negotiating Commercial Truck Insurance

When it comes to commercial truck insurance, there are many points of data that you need to monitor closely and prepare to discuss with your insurance underwriter. It’s important to give the underwriter a full picture instead of a snapshot.

There is so much data available about companies as well as drivers that can count against you without the proper context. This out of context data makes it easier for plaintiff attorneys to go after large payouts and can lead to increased insurance rates or denial from insurance companies.

So, how do you keep this data in the right context? Make sure to tell your driver data story up front.

Telling Your Driver Data Story

The trick to providing the right background is to answer questions about the data before the underwriter asks. If you can’t tell the story behind bad stats, you could easily be rejected or be required to pay higher rates.

You need to tell the story behind poor records or show steps you are taking to improve on problem areas. Give clear records of corrective action steps taken where necessary. You also want to show clear records of all training assigned and completed to show steps to improve safety for your company.

There are many factors that go into the rising commercial truck insurance costs, including increased nuclear verdicts, driver shortages, and the number of commercial insurance carriers available. These factors make it more important than ever to tell the right story when it comes time to renew your insurance.

When gathering your data, there are a couple factors you should consider to tell the right story.

What Factors Influence Insurance Rates?

We all know insurance underwriters look at your crash rates, violations, and other important safety factors when determining what rates are available for your company. But, what other factors play a role in their decision? These are the areas where you have the best chance of telling your story.

Driver retention is a big factor for insurance companies. The available data shows that more accidents happen in the first two years with a new company for drivers. These statistics are the same no matter how long the driver has been operating through their career.

These increased accidents are due to drivers getting used to new equipment and new routes. If you can show your company has a good driver retention rate, you have more negotiating power. If you do have new drivers, but they are owner-operators, make sure your insurance underwriter knows up front that these drivers are operating equipment they are already familiar with.

Another factor in negotiating commercial truck insurance is dealing with the common violations that have easy fixes. A big one here is seat belt use. Provide training and encourage drivers to wear their seat belts at all times.

These seat belt violations are far too common, cost carriers more money than other seemingly more serious violations, and are simple to get under control. This easy fix can save significant amounts when it comes to insurance costs.

Ongoing Training to Improve Your Data Story

The best thing you can do to improve your driver data story is to provide consistent, ongoing training to your drivers. This includes orientation, ongoing, and corrective action training to ensure drivers are prepared to deal with any concerns on the road and improve your company safety culture.

Online training management with Infinit-I Workforce Solutions makes it easy to provide this consistent training. Drivers can access their training from any device with an internet connection, and complete training on their own schedule. This means you can get more of your drivers to complete the training that helps reduce factors that count against you during commercial truck insurance negotiations.

The Infinit-I system is easy to set up and easy to use. To see for yourself, request a demo.

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The Truck Driver Shortage

The Truck Driver Shortage Has Made the News

The truck driver shortage has been at the top of the list for industry concerns the last five years in a row. The shortage was originally reported by the American Trucking Association (ATA) back in 2005 though.

This shortage has officially made the news finally. People have started to take notice of the supply chain disruptions and industry struggles as they see empty shelves and backed up cargo. Between a retiring workforce, COVID issues, difficulties recruiting younger drivers, and many other problems, the shortage of drivers continues to increase.

Recent FMCSA Regulations Add to the Driver Shortage

FMCSA regulations regarding drug and alcohol testing have added to the truck driver shortage over the past year. Since January of 2020, more than 72,000 truck drivers were pulled from the road for failing drug tests required by the Drug & Alcohol Clearinghouse.

56% of these failed drug tests were due to marijuana use. The top three after this are Amphetamines at 18%, Cocaine at 15%, and Opioids at 4%. As there is no way to distinguish when the drug use has occurred with these tests, drivers are being forced off the road for driving under the influence.

The rising popularity of CBD oil is also a concern. The DOT has put out warnings about using these oils as they can negatively affect a drug test.

What Does This Mean for the Supply Chain?

With 72,000 drivers out of service, and difficulty recruiting new drivers, we are looking at continued and possibly increased supply chain disruptions. There are already stories in the news about supply chain backups.

With limited drivers to pick up cargo, America will continue to see empty shelves and delayed deliveries of goods. Older truckers are starting to retire as well due to other issues, and the cargo will continue to sit at distribution centers.

What Does This Mean for the Trucking Industry?

The FMCSA does have the option for drivers to complete a return to duty program for those who end up on the drug and alcohol registry, so they can fix their records. Very few drivers have taken advantage of this program though.

Of the 72,000 drivers removed from the road, only 17,000 have completed the program. The rest show no signs of completing this and are leaving the trucking industry for good.

While it is good to get people off the road who are putting others in danger, this loss with little recruitment ability is hitting the trucking industry hard. Trucking companies are competing heavily for new recruits, driving up costs and leaving many companies with very limited resources.

Trucking companies will need to find ways to recruit new drivers if the driver shortage is going to end. Some recruitment options have been put forth, but it will take time to see if these methods will bring results.

Preparing Drivers to Meet FMCSA Regulations

While the industry scrambles to recruit new drivers, there is still a need to make sure the drivers you already have are prepared to meet FMCSA regulations, so you don’t lose any drivers to regulatory issues. This means you should make sure your drivers are getting regular training to stay safety conscious.

Infinit-I Workforce Solutions provides an online training program that allows you to easily assign and drivers to easily access training. Drivers can complete training from any device with an internet connection, so there’s no need to disrupt supply movement further.

Join us for a free 2-day Safety Management Boot Camp in Dallas, TX to see how Infinit-I can help you get the most out of your training program.

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