Every trucking insurance policy based on variable factors — mileage, revenue, number of units, or payroll — is subject to an annual audit. The insurance company wants to verify that the estimates you provided at policy inception match your actual operations. Audits aren't punitive. They're a standard part of commercial insurance. But they can result in significant additional premium if you're not prepared — or significant refunds if your operations were smaller than estimated. Why Audits Exist When you buy a trucking insurance policy, your premium is calculated based on estimates: - Estimated annual mileage - Estimated revenue - Estimated number of power units - Estimated payroll (for workers' comp) These estimates determine your deposit premium — what you pay upfront. After the policy period ends, the insurer audits your actual figures to calculate the final premium. The difference is either billed as additional premium or refunded as a return premium. Types of Audits Physical audit — An auditor visits your office and reviews your books, IFTA records, and financial statements in person. This is the most thorough type and is common for larger fleets. Mail audit — The insurer sends you a questionnaire requesting specific documents. You compile and return them. Common for smaller operations. Phone audit — An auditor calls to discuss your operations and requests documents electronically. Increasingly common post-COVID. Voluntary audit — You proactively submit your figures to the insurer. Some carriers offer this option and it often results in faster processing. What Auditors Look At For mileage-rated policies: - IFTA quarterly returns (the gold standard for mileage verification) - ELD reports showing total miles driven - Fuel tax records - Trip logs and dispatch records For revenue-rated policies: - Federal tax returns - Profit and loss statements - 1099s from brokers - Factoring company statements - Load board payment records For unit-count policies: - Vehicle registration records - IRP cab cards - Equipment schedules - Lease agreements for any added units For workers' compensation: - Payroll records (W-2s, pay stubs) - 1099s for subcontractors - Quarterly tax filings (941s) - Certificates of insurance from subcontractors How to Prepare Keep clean records throughout the policy period — Don't wait until the audit notice arrives to organize your books. Maintain monthly records of mileage, revenue, and unit counts. Separate business types — If you have both trucking and non-trucking revenue (brokerage, warehousing, etc.), keep them separate in your books. Non-trucking revenue may be rated differently or excluded from the audit. Document subcontractors — If you use owner-operators or subcontractors, keep copies of their certificates of insurance. Without proof of their own coverage, their revenue or mileage may be included in your audit — dramatically increasing your premium. Report changes mid-term — If you add or remove trucks during the policy period, report it immediately. Mid-term endorsements adjust your premium in real-time, reducing the audit surprise at year-end. Common Audit Surprises Uninsured subcontractors — You hired three owner-operators mid-year but didn't get their certificates of insurance. The auditor includes their mileage in your figures, adding $15,000 to your premium. Revenue growth — You estimated $500,000 in revenue but actually did $800,000. Your premium increases proportionally — potentially a 60% additional premium bill. Unreported units — You added two trucks mid-year but forgot to call your agent. The audit catches them, and you owe back-premium for the months they were uninsured on your policy. IFTA vs. estimated mileage — You estimated 100,000 miles per truck but your IFTA shows 130,000. The additional 30% mileage means additional premium. How to Minimize Audit Additional Premiums Estimate accurately at inception — Don't lowball your estimates to get a cheaper deposit premium. You'll pay the difference at audit anyway, plus you may face a large lump-sum bill instead of spreading the cost over 12 months. Report changes promptly — Adding a truck? Call your agent the same day. Removing one? Same thing. Mid-term adjustments prevent year-end surprises. Maintain subcontractor files — Every owner-operator or subcontractor should have a current certificate of insurance in your files. Review quarterly and request updated certificates before they expire. Review your audit — Audits contain errors. Review every line item. Common mistakes include counting personal vehicles, including non-trucking revenue, or using incorrect classification codes. Disputing an Audit If you believe your audit is incorrect: 1. Request a detailed breakdown of how the auditor calculated each figure 2. Provide documentation supporting your position 3. Ask your agent to advocate on your behalf with the carrier 4. If unresolved, request a re-audit with a different auditor 5. As a last resort, file a complaint with your state's department of insurance How Trux Helps With Audits We prepare our clients for audits before they happen. At policy inception, we help you estimate accurately. Mid-term, we process endorsements promptly so your policy reflects your actual operations. When the audit notice arrives, we review it with you, identify any errors, and dispute incorrect charges on your behalf. An audit shouldn't be stressful. With proper preparation and an agent who understands trucking operations, it's just a routine verification.