Posts Tagged ‘trucking insurance’

Updating your fleet equipment. (Trucking)

Thursday, January 17th, 2019

Are you considering updating your company’s heavy trucks and trailers and, if so, what factors do you use to make these decisions? One thing is certain, there is no right or wrong answer, as a crop farmer’s needs will be completely different than a regional general freight motor carrier. Every trucking operation is unique, and every owner looks for different things in their trade-in cycle. However, we can discuss some common items for you to consider when updating your equipment.

Trucking Insurance

Equipment Specification. Make sure the equipment, whether new or used, fits your operational needs and is spec’d accordingly. Is the engine the correct size, the axles appropriate for weight and gear ratio, the frame the correct length, and the fifth wheel able to be adjusted for your trailers and loads? Depending on the freight you are hauling, is your trailer as universal as possible to meet various load configurations and weights your customers might expect?

What Do You Want to Afford? If you are financing a vehicle, you should ask yourself, “What can I afford?” followed by “What do I want to afford?” Remember, the average term of a truck or trailer loan is 60 months, so you should be sure your income is secure for at least the next 5 years. For example, in the case of a farmer, it must be determined the equipment will be utilized enough to justify the ongoing monthly payments.

Maintenance. The cost of running older equipment is not always limited to mechanical breakdowns and repairs. Unless you have a good maintenance program, CSA violations can also contribute to the cost of operation.

Warranty. Manufacturers are providing some pretty good warranty options on new trucks—many coming standard with 5-year or 500,000-mile warranties. Many larger fleets are buying trucks in bulk, sometimes saving $10,000 to $15,000 per truck. They run these trucks up to 380,000 miles and get a good trade value as they still have 120,000 miles of warranty.

Fuel Economy. Just a decade ago, 5 or 6 miles per gallon was considered good, with some trucks getting 4. Truck technology has changed, and some fleet applications are claiming to see 8 miles per gallon from their fleet.

Driver Satisfaction. Drivers today have a lot of choices—especially professional drivers with years of experience and a clean MVR. What differentiates your company to attract and retain drivers of this caliber? Nice equipment is often thought to be a part of that equation.

Financing. New model trucks are usually easier to finance and often qualify for lower interest rates. The higher cost of buying new when considered with the lower APR can sometimes make more financial sense than buying used. This is important as the standard over-the-road truck is now selling for $140,000 to $150,000, while used equipment commonly runs between $30,000 and $90,000.

Depreciation and Resale Value. Like all new vehicles, trucks and trailers depreciate fairly quickly, so the resale value will drop significantly in the first year. In some circumstances, buying used enables you to recoup your initial investment should you decide to sell the equipment.

Regulations. Are you in trucking for the long term? If so, consider the required CARB regulations when traveling in some states. This can end up costing truckers $16,000 to $18,000 for compliance on a used truck, whereas a new truck is already compliant.

Content provided by Cliff J., trucking insurance specialist at Acuity Insurance.  Original blog post can be found here.

For a quote on your trucking operation please contact Beck Insurance Agency at 419-446-2777, or click here.

Auto Insurance

Sunday, November 19th, 2017

Auto Insurance

The right auto insurance policy can help get you back on the road quickly if your car is damaged or destroyed by accident, fire, theft, or other covered event. Your policy may also provide protection against medical and legal expenses resulting from injury, loss of life, or property damage caused by an accident involving your vehicle.

An auto insurance policy is a contract between you and an insurance company. You pay a premium, and in exchange, the insurance company promises to pay for specific car-related financial losses during the term of the policy. Work with us to determine the best coverage for you.

Insurance for cars, trucks, boats and more!

Beck Insurance Agency can insure your Motorcycle, Classic Car, Motor Home & RV, Boat & Jet Ski, and ATV too! Contact us for more information today!

How much auto insurance is right for you?

Based in Archbold, Ohio, the team at Beck Insurance Agency understands the auto insurance needs of our customers.

Auto insurance requirements vary by state. In some states, to drive you must carry:
Liability coverage – to pay for losses you cause others, or:
No-fault coverage – to pay you and your passengers for medical and related expenses caused by injuries from a car accident, regardless of who is at fault, or
Both liability and no-fault coverage.

We write insurance in Ohio, Indiana, Michigan, Tennessee, Georgia, and Florida and would be happy to help you ensure you have the right coverage for where you live.
Even in states where coverage isn’t required, drivers must, by law, be able to pay for losses they cause others. Having insurance is the simplest way for most people to comply. To finance a car, it is usually necessary to have insurance which covers damage to your vehicle. This includes:

Collision Insurance

Collision insurance coverage pays for damage caused to your vehicle in an automobile accident. Standard collision coverage will pay for any repairs up to the fair market value of your car. Collision coverage usually also comes with an insurance deductible. It’s the amount of money you pay toward repairs before your collision insurance kicks in. The higher the deductible you’re willing to pay, the less the collision coverage will cost.

Comprehensive Insurance (Other than Collision)

Comprehensive insurance covers damage done to your car in some way other than a collision, such as if it were stolen or vandalized. Flood, hurricane, theft, windshield damage and fire are also events usually covered by comprehensive car insurance. Like collision, comprehensive will pay up to the fair market value of your car (less your insurance deductible). And although it’s not legally required by any state, you will probably need it if your car is financed.

Every person is unique – talk to us today to find out how to get the best price and value on auto insurance for you.

Beck Insurance Agency:  “Check with Beck Before You Wreck“.  Call for a quote today at 877-446-BECK (2325), Email us at info@beckinsurance.com, or hit us up via the our Contact Us page!

Trucking Firms Facing Recruitment Problems Ahead of Holidays

Tuesday, November 7th, 2017

By Jennifer Smith Oct. 24, 2017 9:01 a.m. ET

Trucking companies are worried about finding enough drivers now that the freight market is recovering.

Shipping demand is strengthening after a roughly two-year slump, as manufacturing activity expands and retailers stock up in advance of the holiday season. Meanwhile, fleets are reporting trouble recruiting qualified drivers to haul those loads. Some are raising wages even before they secure rate increases from shippers.

Long-haul truck drivers often hop from one fleet to the next in search of better pay or other benefits, such as schedules that permit them to spend more nights at home. They also tend to be older than the general workforce, fueling concern about driver supply as more truckers near retirement age and younger people enter other fields.

A tight employment market compounds the issue, as the construction and energy sectors draw from the same labor pool. Long-haul truckers make on average about $55,000 a year, compared with the roughly $80,000 to $100,000 they could earn driving for the oil-and-gas industry, said Bob Costello, chief economist with the American Trucking Associations, an industry group.

This year “driver shortage” ranked as the trucking industry’s top concern for the first time since 2006, according to an annual survey released Monday by the American Transportation Research Institute. Nearly 40% of respondents ranked driver supply among their top three concerns, according to the industry research group’s report.

“This is as tight a market as we’ve seen in 25 years, and we expect it to tighten further,” said Derek Leathers, chief executive of Werner Enterprises Inc., a large truckload carrier based in Omaha, Neb. “Demographics are working against us.”

Over the past two years, Werner has boosted wages by about 15%, one of a number of steps to aid driver recruitment and retention. The company has also spruced up its equipment and terminals.

Tightened capacity can benefit carriers, giving them more leverage with shippers on price, but it can also mean passing up work if they can’t find drivers. Though fleets often expand when business is booming, that may be off the table this time.

“I don’t think there’s any reason to believe that we could significantly grow our fleets given the driver capacity issue next year,” Richard Cribbs, chief financial officer at Covenant Transportation Group Inc. said on an earnings call last week.

At Covenant, a large trucking company based in Chattanooga, Tenn., employment costs for the third quarter rose 4.8% from a year earlier, though revenue rose faster and profit soared 59% to $4.6 million. The carrier expects shipping rates to increase by 5% to 9% in 2018, but said its truck count will remain largely flat.

J.B. Hunt Transport Services Inc., one of the biggest U.S. carriers, said earlier this month that rising driver pay, a decline in fleet size and an increase in trucks lacking drivers weighed on third-quarter results in its truckload division. That unit had a 5% drop in revenue from the year-earlier period, though operating income increased 12%.

Drivers often scoff at the idea of a shortage, saying the solution is simple: pay more.

Companies are increasing wages “and they should,” said Mr. Costello. “But it’s about more than pay. It’s about the lifestyle.”

The ATA says the driver shortage is leading to delivery delays, and estimates the shortfall has yet to peak this year. Carriers will need to hire about 898,000 new drivers over the next decade as more truckers retire and the industry expands, according to the group.

Source:  https://www.wsj.com/articles/trucking-firms-facing-recruitment-problems-ahead-of-holidays-1508850070?__prclt=Xw9mCo1R