Why it May Not Be Wise to Opt for a High Deductible on Fleet Insurance

Customers have an option to choose what the deductible (the amount you pay out of your pocket in case an insured risk occurs) on their insurance policy should be. Some people choose the highest deductible possible while others opt for the lowest. This article discusses why it may not be a very wise decision to select the highest deductible for your heavy motor insurance.

Your Driver's Driving Records Play a Key Role in Premium Rate Assessments

If your drivers have clean driving records and you have been buying fleet insurance for several years, chances are very high that you are already getting very good rates on your fleet insurance. This means that choosing the highest deductible on your heavy motor insurance in order to get lower rates has minimal impact on the rates set. Instead, you will be setting yourself up to fork out a lot of money when the risk you insured against occurs.

Some Events Are Out of Your Control

Imagine that a hailstorm destroyed your entire fleet of heavy-duty trucks; would you be happy to dig deep into your pocket to pay for such damage, as if you had anything to do with it? In such a case, you would want your insurance company to foot the entire bill of restoring your fleet. That is why it may be unwise to ask for the highest deductible on your fleet insurance policy.

Many Claims Are Within the Deductible Range

Another reason why you should not pick a very high deductible on your fleet insurance is the fact that many insurance claims are amounts that fall within the deductible range. For instance, claims for replacing windshields damaged by birds may not exceed the deductible amount you chose. In such a case, you would have to foot the bill for that repair or replacement since the insurance company only comes in to settle any sums in excess of that deduction you selected. In such a case, you would find yourself spending money on your fleet even when you have full insurance cover.

As you can see, you need to think very carefully before you name a figure as your deductible for the fleet insurance you purchase. You may need to compare the implications of different deductible amounts on your insurance rates so that you settle for that deductible which limits how much you will spend in case an insured risk occurs.

Get a better idea of what you should be paying by consulting insurance providers like Elders Insurance.