Getting insurance for the average car is not always easy, and unfortunately it’s not much easier for commercial trucks. Finding a good deal on your truck insurance may not be quick, but it is possible.
There are often various insurance packages with different coverages and different ways to cover the risks that come with driving truck loads.
Let’s take a look at some of the basics for getting insured and protecting yourself, your rig and your livelihood.
Trucking Insurance Basics
Insurance is a necessary expense if you drive a truck, or you’re thinking about getting your authority.
Because of that, you’ll want to perform some due diligence and make sure that you have the appropriate coverage for your business operations.
Even if you already have coverage, we recommend assessing your insurance yearly to ensure things haven’t changed,or that there aren’t better options on the market now.
For starters, you should be familiar with the different factors that can influence insurance costs: driving records, location, loss history, experience in the industry, commodities hauled, age of the driver, age of equipment, etc. are all important.
There are many types of coverages used in trucking operations. In this post, we’ll cover just a few of the most common ones:
- Physical Damage: Insurance coverage for your truck and trailer. Your premium will relate to a percentage of the value of your equipment, and it’s not required by law, but is usually required if you are financing your truck.
- Primary Auto Liability: This insurance is required by federal regulations, and it will protect you in the case that a third party is injured in an accident.
- Cargo Insurance: This covers damage or loss to truck loads in transit; there are many exclusions, like vehicles left unattended or a maximum theft limitations on target commodities (garments, liquor, electronics, etc.).
- General Liability: Insurance that protects businesses for any property damage or bodily injury that might occur, not involving a truck. For example, contractual exposures or a slip and fall exposure at your place of business.
- Non-Trucking Liability: Should an accident occur when the trucker is not under dispatch, this coverage will help you. It’s also referred to as “deadhead coverage” or “bobtail liability.”
- Terminal Coverage: This protects freight located at designated terminals in the event of loss, but typically has time limitations, like 72 hours maximum per specific load. If you’re storing your goods for longer, you may want to look at other coverages.
There are many other coverages out there, and regardless of the plans, you choose, it is always important to pay close attention to your policy. Take the time to know the ins and outs of your insurance as it could make all the difference if an accident, damage, or other unforeseen incident takes place.