Everything Trucking Companies Need to Know

A trucking company owner needs to manage all the activities starting from understanding the overall operating cost to run the business, to finding out the best truck insurance plan to safeguard it. As a trucker, you must know every other expense like fuel, maintenance, food, etc.

Read more
  • Renew policy in 2 minutes*
  • 20+ Insurers to choose
  • 1.2Cr+ Vehicles Insured
Commercial Vehicle Insurance
Compare and Buy Commercial Vehicle Insurance
Renew in 2 minutes
View Prices
Please wait. We Are Processing..
By clicking on "View prices" you agree to our Privacy Policy and Terms of use
Get updates on WhatsApp

How to Set Up a New Trucking Company?

To start a new trucking company, you must know different aspects related to it. If you want to know how to set up a successful trucking company, the below steps will help you in clearing your doubts.

1. Find the Right Niche

If you want to start a trucking business, you need to choose a market niche. Whether you want to focus on the markets that the large carriers avoid or want to choose to haul specialised loading business. The market type you will choose will determine the trucks you will buy or lease, the rate you will charge, and the customer you will service.

Fleet businesses are generally divided into several categories like packers & movers, general freight, tank trucks, heavy hauling, building materials, motorised vehicles, household goods, bulk loading, petroleum products, agricultural commodities, dairy products, and refrigerated solids.

2. Create Your Business Plan 

To run a successful trucking business, you must have a business plan. You must research to get a broad view of the industry. Under your research, you should begin with market research and a data-driven strategy to attain business goals.

You must know what type of trucks you will lease or buy, the type of loads & freights you will work with, the driver hiring process, find the competitors & conduct a SWOT analysis, and know-how to diversify your business. Hence, an accurate business plan is a roadmap to making your trucking business a successful brand. 

3. Know the Cost of Business & Find Resources 

Investing in a trucking company is an expensive affair. There are a lot of upfront costs that you will have to pay before starting a company. The costs include the down payment of the truck, registration fee, licensing fee, truck insurance cost, and permit fees. After completing this payment, you must also include fuel, maintenance, food, miscellaneous, etc. 

Moreover, you should know beforehand how to cover these costs and start making a profit out of it. The first 6 to 12 months will be difficult for you to spend and cover the cost. Therefore, you must know the cost of business and find resources to run the business. 

4. Know the Rules You Have to Follow 

Before starting the company, you should know the rules and regulations that you have to comply with. Your trucking company must obtain the necessary business licenses, permits, registration certificates, and truck insurance for truckers to start the business. 

Depending on the states and their policy, you must have all the permits to run a trucking company. Running a trucking company allows you to separate your personal belongings like assets, and business liabilities. 

5. To Enhance the Taxing Process  

Along with the commercial vehicle insurance policy, you must know the effective GST on your trucking business. For heavy goods vehicles, the GST differs from the light-duty vehicle. 

An ideal trucking business has transparency in tracking income and expenses. For an efficient taxing system, purchase excellent bookkeeping software and hire an accountant to look after income and expenses. Understand the shipping contracts and payment receiving date. Also, it is advised to keep your personal and business finance separate to keep a record of receipts, invoices, and expenses. 

6. Find the Best Driver and Hire Them 

One of the important steps to establishing a successful setup is to find the best truck drivers with clean driving history. A successful company offers some benefits to those drivers who have accident-free history, flexible working, and received training certifications. All the above features will help you to commence a trucking business and provide satisfaction to the employees. 

Bottom Line 

The trucking industry is the backbone of the logistic sector in India. Having a great fleet company with excellent teamwork is half the work done. The other is having efficient back-office operations to look after all the connecting departments. It is suggested to get all the permits and licenses according to the state policies. Also, buy a truck insurance policy to give your truck extensive financial cover. 

cv insurance

Secure your commercial vehicle

Renew via self video inspection

Lowest premium starting ₹ 3,211

Standard T&C Apply.

Commercial Vehicle Insurers
Bajaj Allianz Commercial Vehicle Insurance
Godigit Commercial Vehicle Insurance
New India Assurance Commercial Vehicle Insurance
Reliance General Commercial Vehicle Insurance
SBI Commercial Vehicle Insurance
Shriram Commercial Vehicle Insurance
United India Commercial Vehicle Insurance
Zuno Commercial Vehicle Insurance
Disclaimer: The list mentioned is according to the alphabetical order of the insurance companies. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website www.irdai.gov.in

Commercial Vehicle insurance Articles

  • Recent Article
  • Popular Articles
16 Sep 2022

Top 6 Auto Rickshaw Models In India

Due to easy commutes, and low fares, the demand for

Read more
16 Sep 2022

5 Tips to Find the Bus Insurance Policy

Buses are passenger-carrying heavy-duty commercial vehicles that

Read more
07 Sep 2022

Is Owning an Auto Rickshaw or Renting It a...

Auto rickshaws have been the best mode of last-mile connectivity

Read more
06 Sep 2022

Difference Between a Truck and Pickup Truck

In India, you must have seen different types of commercial

Read more
27 Jul 2022

Top 6 Bus Manufacturing Companies in India

If you are planning to buy a private bus for setting up a transport

Read more

10 Leading E-Rickshaw Manufacturers in India

The E-rickshaw market in India is witnessing a gradual growth year by year. The Indian government has also initiated

Read more

Pradhan Mantri Kisan Tractor Yojana 2022

India is an agrarian country, and farmers are the backbone of this agriculture-based economy. With that saying, the

Read more

Best Tractor Companies in India

With a range of more than 20 brands, India is now emerging as a massive market for manufacturing various types of

Read more