Road to Savings: 5 Proven Strategies from Luigi Insurance Agency to Cut Your Insurance Costs in 2024
As 2023 comes to a close and 2024 commences, our agency took the time to reflect on strategies and tools that either helped, or hindered, our collective progress. By collective, we not only mean our team, but our clients as well. That means you! In the spirit of collaboration, for our very first blogpost we have created a list of 5 things we learned this past year as an agency that helped our clients save money on their insurance.
First and foremost: Have a Safety Plan. Safety is crucial to the success of any company. This necessary foundation provides support to a myriad of other important factors between agencies and truckers, such as efficiency, reliability, and trust. Having a safety plan in place means that you will be able to mitigate potential driving risks and hazards, thereby reducing the severity and frequency of accidents. This also means that drivers will ultimately lower their claims payouts and improve overall profitability.
Additionally, safety plans help ensure regulatory compliance across the board. Due to the fact that the trucking industry is heavily regulated, having a safety plan in place is imperative to keeping on track with industry standards and reducing the likelihood of penalties.
A codified, regularly-updated plan also highlights a strong commitment to both caring for and protecting the livelihoods of drivers. Customers are more likely to trust insurers that prioritize safe and responsible business practices. Safety plans are commitments which build trust, rapport, and fantastic business reputations.
Furthermore, safety plans can lead to lower insurance premiums and loss prevention. This means that insurance agencies can offer more competitive rates to safe and responsible trucking companies, making their services more attractive to potential clients.
Safety plans may aid in the event of lawsuits arising from accidents. Fundamental protocols demonstrate that the insured company was committed to safety and took reasonable precautions to prevent accidents.
Finally, safety plans are dependable resources in case of accidents. Having an established plan or checklist can make all the difference in the midst of volatile, high-stress situations. A few key points to remember when creating a safety checklist:
Clear, concise protocol instructions
Promptly report the accident to both law enforcement and the insurance agency
Document the scene with photos
Seek legal counsel if necessary
2. Invest in a Dash Cam. Dash cams are highly effective tools for accurate, honest claims reporting. They are the most authentic witness when it comes to collecting evidence about potential mishaps. They can help expedite resolutions, reducing costs and minimizing disruptions to the insured party.
3. Have a Vehicle Maintenance Program. Much like a safety plan, vehicle maintenance programs help assure the highest quality of both comfort and safety to operators, passengers, and the public. Compliance to a proactive set of measures helps guarantee the quality and standards of both the business and the vehicle. It is important to manage preventive maintenance and repair activities to promote vehicle reliability. Not only will this minimize service interruptions due to vehicle or equipment failure, but will also insure a higher degree of cost-efficiency. When it comes to conducting vehicle operations, repairs, and cleaning, another imperative element of maintenance programs are compliance with local, state and federal regulations. Aside from the vehicle itself, it is also important to regularly schedule driver training programs, and to keep operators up to date on correct protocol. Overall, the program should include five basic fundamentals: Pre-trip Inspections, Basic Service Routines, Vehicle Cleaning, Vehicle Repairs, and Documentation and Analysis. Alongside a safety plan, vehicle maintenance programs are great steps to implement in order to reduce driver premium.
4. Properly Report What You Haul. Every year, truckers lose thousands and thousands of dollars because they fail to correctly report what they haul. Know what you are hauling, and avoid recording “General Freight” unless it’s an apt descriptor of your cargo. Keep FMCA updated regularly–there is a huge difference in hauling Livestock and Grain versus Household Goods, and that difference could be worth more than you think!
5. Learn about Potential Credits or Discounts. Good things don’t come to those who wait, they come to those who ask! Contact your insurance agent to see if they can apply discounts or credits, especially if you have a history of good driving, or a longstanding relationship with a certain provider. Last, but not least, inquire about any ELD discounts you may be entitled to. Every trucker must operate with an ELD, and it could be saving you anywhere from 5-18% on your insurance.
In conclusion, the glue which holds each of these steps together, and makes success possible, are honest and genuine relationships. Committing to people before profit establishes good safety practices, preventative vehicle maintenance, and a positive, professional reputation. We’ve learned a lot as an agency throughout our first year of business, and hope that you will continue learning with us.
