Insurance takes a great deal of planning. Most insurance companies will not issue you a policy until you have had your CDL for at least 2 years. If you do find an insurance company that will take a risk on you sooner, the premium will probably be very high. Most insurance policies want you to pay an up-front premium that is 25% to 30% of the total policy cost. Working with TAFS Factoring allows you to apply for a business loan to help cover that big down payment.
A best practice for making your insurance payment is to set aside a portion of money from each invoice you receive. Doing this yourself can be stressful. Did you set aside enough money? When is the payment due?
Insurance is a big part of the trucking industry. It not only protects your company but your customers’ companies as well. As long as you have a good policy in place and continue to make your payments, you have the ability to keep rolling.