If you work in the trucking industry or in a field that often moves items from one location to another, you probably already know what the term “commercial truck insurance” means.
As vital as having your vehicle insured, finding the correct truck insurance can save your company money while giving you access to all the coverage you need for your trucks, cargos, and carriers. In the United States, more than 3.5 million transporters work for more than 7 lac companies. Having the right truck insurance is necessary with this many business trucks on the road daily.
Truck insurance offers general liability, collision coverage, worker’s compensation, and other benefits, much like any personal vehicle policy. Commercial vehicles, however, require broader coverage because they are more expensive, heavier, and routinely transport large loads.
To give your vehicle the most protection possible, you must have an in-depth understanding of the various types of truck insurance plans, their policies, and how to choose the one that best suits your company’s needs.
So keep reading!
Why should you know about the different truck insurances?
Regardless to say that your trucks are your biggest assets. Therefore, keeping it safe from unforeseen and terrible circumstances is crucial. To get a quick picture of what it will be like not to have the proper truck insurance, look at the numbers below:
- The average price for a fatal heavy truck accident is $3.6 million.
- The average cost of an injury-related collision is approximately $200,000.
- The average estimated price of all collisions involving heavy trucks is $91,000.
Huge, right? Knowing all the different protection plans can help you make a sound decision.
Here is what the right truck insurance can do to your business
- Defend against various dangers that could affect both on and off-road vehicles.
- Protection from bodily harm or property damage caused to oneself or a third party, both legally and financially.
- Cover damages to your truck against natural calamities, vandalism, fire, and theft.
However, you should be aware of the coverage you require while abiding by local, state, and federal laws before enrolling in any insurance.
Types of commercial truck insurance
Primary auto liability
Physical injury and property damage liability are the two parts of primary motor liability insurance that are always included. When you are responsible for an accident, your primary motor liability insurance will cover any injuries or property damage to third parties.
You are required to get this insurance for your commercial cars under federal rules. This insurance is a must-have whether you own your own trucking company or have some rented vehicles.
General liability
Every US state mandates the purchase of general commercial liability, or CGL, insurance. The firm’s proprietors, managing directors, operation leaders, etc., are given this coverage. Distributors and producers are also included. This insurance will help cover the following costs:
- The damage or death of any third party caused by your transports after a collision.
- This insurance also covers losses during on-loading and off-loading.
- Includes the actions taken by your trucker when working on private property, such as loading docks or rest breaks.
Bobtail insurance
This policy, also known as non-trucking liability, offers protection if your carrier drives the truck after delivering the shipment or for other reasons. Bobtail insurance is helpful in those situations where the individual trucker is not protected by primary liability coverage.
So, if you are in an accident, it is advantageous if:
- Going to pick up a fresh load.
- In the interval between dropping off and collecting loads.
- After your final drop-off, you’re on your way home.
Physical damage cover
Physical damage guards against damage to the truck brought on by theft, natural disasters, collisions, and vandalism. Additionally, it will cover any trailer damages necessary after carrying massive trucks or other large goods.
Additionally, if your commercial truck sustains damage that renders it unsalvageable, this protection will assist you in replacing it. The truck’s cost and equipment determine this policy’s premium.
Trailer interchange
When trailers are towed for interchange purposes, the insured is protected from all physical damages under the trailer interchange policy. This policy is a crucial damage cover for drivers who do not own the trailers. This policy coverage guards you against the cost of destroying your trailer by a collision, explosion, fire, or vandalism.
Motor truck cargo
Your truck drivers must provide coverage for any cargo that is in transit. Regardless of the volume or type of cargo, your truck is hauling. Motor truck cargo protection is necessary because it offers protection if the cargo is harmed or stolen due to an accident or fire.
On-hook towing
Tow trucks perform a particular task with some element of risk. On-hook towing protection is crucial because these trucks routinely tow vehicles. If your tow truck is damaged, you will be paid for the costs you spent on replacement or repair.
Motor truck general liability
This insurance offers complete protection, including coverage for bodily harm and property damage. Motor truck liability also covers the damage when a shipment is delivered to the wrong address, truck stop, or loading dock.
Reefer breakdown insurance
Reefer breakdown insurance can protect against many potential problems that chilled trucks may encounter while operating. It is to shield your trucks against the expense of refrigeration failure, collision-related property damage, or cargo loss. You’ll require this coverage.
Some insurance providers don’t offer coverage for select goods, including frozen foods, cigarettes, and shellfish. So, before collaborating with any insurance company, look for these exclusions.
Medical payments
This insurance, which sometimes goes by the name Medpay, covers the cost of medical care following an accident. Regardless of who was at fault, this policy provides financial assistance should you have to pay for your or a passenger’s medical expenses.
Bottom Line
You must get truck insurance whether you are a fleet owner or the proprietor of a trucking company because it is mandated by law in practically every US region. It is essential to have a basic insurance plan that provides defense against theft, vandalism, accidents, and bad weather, especially if you move stuff regularly.
Having the appropriate knowledge of truck insurance gives you clarity in choosing the right insurance for your business.
You should resist the temptation of a policy that is offered at a low cost because it might not meet your needs. It has so many exclusions that you can wind up covering the loss. Examine every type of cover required for your truck first, then choose one that offers blanket protection. And don’t overlook the settlement ratio factor.
