Because we specialize in trucking insurance, typically when our clients leave us, it isn’t because they found a better insurance program, but it is almost always because they are no longer profitable. From our experience of insurance hundreds of trucking companies and interviewing some of our most successful and profitable clients, we have compiled a list of tips on how to make your trucking company to be profitable, and how to stay that way.
- If you must rent, only do so temporarily. Buying a truck is long-term the most profitable route. Even with maintenance costs, the cost of renting is significantly more.
- Only hire drivers with clean records. Drivers with accidents, tickets, and suspensions not only cost you more to insure but also cost more in fuel and increase your chances of having an insurance claim.
- Have multiple options. Don’t only depend on Amazon Relay or only depend on your dispatcher. Have multiple channels you can get loads from so you always have a profitable option.
- Cut down on your deadhead. Check for loads coming out of areas before you haul to an unknown area.
- Work with an insurance broker that specializes in trucking. You should be reviewing your entire policy, your garaging address, and your drivers with your agent. There are often possibilities to save. We help clients become more profitable solely from fixing their old agent’s mistakes on their insurance.
- Have standards. Don’t haul for less than your baseline CPM (cost per mile). Know your worth!
- Stay organized. Don’t wait until tax season to do your bookkeeping. Either hire out your bookkeeping or do it yourself. This will help you always know your financial standing.
- Don’t get cheap on your insurance. One accident without proper insurance coverage could be the trial that puts your company in the ground.