subject: Mileage-Based and Gross Receipts-Based Truck Insurance Packages [print this page] Mileage-Based and Gross Receipts-Based Truck Insurance Packages
Because the trucking business relies heavily on the equipment that is used for the job, it is highly advisable for these businesses to invest on the besttruck insurance packages that they can use to maintain their vehicles. There are different types of packages that these companies may choose from, all of which have their own sets of advantages and disadvantages.
The two main types that trucking companies may choose from are the mileage-based and gross receipts-based premiumtruck insurance packages. These two classifications are mainly based on the way that the monthly premiums are calculated. Since the company's finances will be taken into consideration, choosing among these two types will work best as far as making profit is concerned.
Mileage-based premiumtruck insurance packages use the total number of miles that the company expects to cover during a specific duration. Obviously, companies that aim to travel wider distances will be required to pay higher premiums. Gross receipts-basedtruck insurance packages, on the other hand, use the company's over-all profit expectation in setting the amount of monthly premium that will be required. Companies that are expected to make higher profits will obviously be asked for higher monthly fees.
Most of the time, the monthly premium requirements that will result from the two types of calculations fall around the same amount. However, there are isolated incidents when one type oftruck insurance package will ask for lower monthly fees and charger. For this reason, truck companies are advised to make their own calculations before they choose which type they will invest on. This will not only help in minimizing the regular amounts that would have to be paid, but help in making them the highest level of profit possible.
Different types of trucking companies will benefit more from one type, as compared to the other. Shipping businesses, for example, who do not have a set limit as to the distance that their trucks will travel will benefit from mileage-based packages. For this reason, companies are advised to assess the type of needs that they have before they choose the type of insurance packages that they will bet their money one.
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