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New CDL Driver? What to Expect for Insurance Costs in 2024

If you’re considering getting your commercial driver’s license (CDL) in 2024, you probably have a lot of questions about the costs involved. One of the biggest expenses for new CDL drivers is insurance. Unfortunately, insurance rates for new truckers are skyrocketing.

In this blog post, we’ll explain why new CDL driver insurance cost is rising and what you can expect to pay in 2024 and beyond. We’ll also provide tips to control your insurance expenses as a new truck driver.

Why Are Insurance Rates Going Up for New CDL Drivers?

It can be risky for insurance companies to insure beginner CDL drivers. This is a result of your lack of road experience operating a commercial vehicle. Industry studies show that compared to more seasoned drivers, novice truck drivers had a five higher rate of accidents in their first year of operations.

As a result, many insurance carriers are drastically increasing rates for new CDL holders. They view inexperienced drivers as a threat to their bottom line. 2022 saw record high insurance premiums for new truckers entering the field. Unfortunately, experts predict the trend will continue in 2024.

What Will New CDL Driver Insurance Cost in 2024?

The average annual insurance premium for a new Class A CDL holder is estimated to be around $8,000 to $10,000 in 2024. However, costs vary widely depending on these factors:

 

  • Your age – drivers under 25 will pay the highest rates
  • Your driving record – tickets, accidents, violations will raise your premium
  • Your truck – newer, well-maintained rigs qualify for lower premiums
  • Your trucking route – local/short haul vs long haul
  • Your cargo – hazmat loads garner higher premiums
  • Your coverages – minimum liability vs full coverage options

New CDL drivers should explore cargo insurance options offered by various companies. Understanding the specific coverage provided for cargo and how it complements overall insurance is crucial for making informed decisions.


How to Control Your Insurance Costs

While insurance costs are rising, there are ways new truckers can keep premiums in check:

 

  • Take defensive driving courses – completing a certified course can earn you a discount up to 10%.
  • Install telematics – insurers may lower premiums 5-15% for real-time driving data.
  • Choose higher deductibles – opting for a $2,500 deductible instead of $500 could save 15% or more.
  • Join a fleet – company drivers may qualify for group insurance discounts.
  • Maintain clean driving record – every ticket raises your risk profile. Drive safely!
  • Select older, less expensive truck – insuring a $150,000 rig costs more than a $75,000 model.
  • Operate in optimal conditions – avoid dense traffic, night hauls, bad weather.
  • Opt for basic liability – skip extra coverages like trailer, cargo, GAP to start.
  • Compare many providers – rates can vary 40% between insurance companies.

 


The Cost of Insuring a CDL is Going Up – But You Can Manage It

 

There’s no way around the fact that driver insurance costs are skyrocketing in 2024 due to increased risk. However, being a smart consumer can help minimize the strain on your wallet.

 

Following the tips above helps control expenses while operating legally and safely. Compare carriers diligently, as the range in premiums can be huge. Don’t let insurance be a roadblock to your trucking career. With smart planning, new drivers can manage the rising cost of CDL insurance in 2024 and beyond. Some insurance providers offer discounts when bundling different policies. Exploring options to bundle auto and cargo insurance can result in cost savings for CDL drivers.

Also, the type of cargo insurance company you choose also impacts your costs. Larger insurers have more data to set accurate rates based on risk profiles. Smaller companies may charge higher premiums due to lack of driver experience data. Always compare multiple quotes.


Conclusion 

In conclusion, being informed about insurance costs and making strategic decisions can empower new CDL drivers to navigate the road ahead with confidence. With the right knowledge and proactive measures, drivers can effectively manage insurance expenses while focusing on building a successful career.

We are here to help

Since the very beginning, Southwestern Insurance has been doing what it does best: provide customers with the best insurance options at the best possible price. We are motivated, like most of our customers by the belief that we can always do better. And like our customers, we’re not only confident that there is a better future ahead, we’re trying to create it. One policy and one customer at the time. We treat customers like we treat family. They deserve it. And, because we have been in business long enough and know the business as well as anybody, they can rest assured that we can provide the best options at the best possible prices. Come and visit any of our locations or call us. We are here to help.

Southwestern Insurance Services Inc.

• Hialeah Office
4375 Palm Avenue
Hialeah, FL 33012
Phone: (833) 762-3467

• Miami Office
8899 NW 18 Terrace, Suite 201
Doral, FL 33172
Phone: (833) 762-3467

• San Antonio Office
18911 Hardy Oak Blvd Ste 108
San Antonio, TX, 78258
Phone: (866) 417-0070

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