An owner-operator or small business providing trucking services must have commercial truck insurance. It can be difficult to afford insurance for a company with fewer than two trucks. A truck’s type, its cargo, the risks involved, and the driver’s experience determine which options are available. There will probably be many different types of coverage included in an insurance package for your business, so knowing how they work can help you determine which options are appropriate.
A trucking insurance policy is necessary to protect your company against the possibility of an accident. Learn about the different types of coverage by reading on;
Basic Coverage
Collision insurance and comprehensive coverage are the two basic types of coverage. A collision damage policy covers both the damage to your vehicle and that of the other driver’s if you cause an accident due to your negligence. The general purpose of comprehensive motor vehicle insurance is to cover the cost of repairs to your cars that are not covered by collision coverage up to a maximum value.
Specialized Coverage
Many insurance companies offer specialized options for commercial trucking. Your truck should be covered for all possible situations without raising premiums beyond affordability. Additionally, alongside basic coverage, commercial auto liability is vital for truckers transporting cargo for customers. This will cover financial damages related to others’ property and bodily injuries. The cost of cargo insurance required to cover damages varies depending on the value and type of cargo.
Non-Trucking Coverage
The coverage offered by insurance companies not specifically connected to cargo transport includes non-trucking liability, bobtail coverage, insurance for personal belongings in the truck and occupational accident protection. Bobtail insurance comes into effect once the truck delivers its load and travels without any trailer or cargo, or if the truck is used by the owner for personal purposes. It is the same as non-trucking liability insurance, which covers vehicles when they are not in the process of transporting cargo. Owner operators are covered by occupational accident insurance in case of dismemberment or accidental death while driving.
Premiums
Your insurance premiums are billed in advance on a per month basis. Insurance can be purchased through the dealer and combined with truck payments, but this might cost more than acquiring it directly from the insurer. You will have to pay premiums throughout the policy’s duration. Cancellation at any time won’t impact your credit score, but you are responsible for paying the remaining premiums until the cancellation is effective. Bad driving records may result in higher premiums.
Deductible
Part of your premium is determined by your deductible or which you are eligible for one. The insurance company will charge a higher deductible to drivers who have a history of accidents, due to the increased risk. In the event of a claim, the deductible is paid first, and ranges from $500 to $2,000. As an example, if you pay a $1,000 deductible and the repairs cost $1,500, the insurer pays the remaining $500 toward the deductible.
If you do not want to face a high deductible, consider a low deductible and a higher premium. The insurance premium is lower when the company hires experienced and accident-free drivers, in such a case, higher deductibles and lower premiums make sense.
General Liability Coverage
When a trucker is operating on another’s property, the general liability coverage will protect him from being sued for his actions. Under this policy, any mistakes or mishaps made by the truck at loading docks or truck stops will be protected.
Mistakes made in loading or delivering the driver’s load are also covered by general liability insurance.
Primary Liability Coverage
Trucks owned by you are not covered by primary liability insurance. It will, however, provide coverage for damages suffered by victims when a company employee operates a commercial vehicle.
Physical Damage Coverage
Physical damage coverage is another option for commercial truck insurance. Business owners who might need repair or replacement of damaged trucks or equipment should consider this insurance.
It covers trucking accidents and thefts.
Is Trucking Insurance Necessary?
Commercial trucking businesses need insurance to protect themselves from potential risks. Business owners should consider the above options when it comes to commercial insurance for trucks.
When you start a trucking company, you’ll need insurance plans to protect your assets. Finding the right trucking insurance provider is key to getting the most value for your money.
