Truck Insurance
Truck insurance can be more complex than car insurance. It covers straight trucks, pickup trucks, commercial trucks, and tractor-trailers. When trucks are used professionally, it is important for the necessary insurance to be obtained. It may be in a business owner's best interest, however, to choose insurance coverage that goes beyond the minimum requirements. Business vehicles demand specialized attention from insurance companies. Truck insurance varies, and can be purchased in accordance with the different situations that truck owners face.
Professional trucks require more types of insurance coverage than simple auto liability insurance. Drivers, cargo, and trailers need to be insured in addition to the liability coverage. Professional truck insurance requirements can include trucking liability, non-trucking liability (also known as bobtail liability), general liability, motor truck cargo, trailer interchange, workers compensation, physical cargo, and ICC authority insurance.
Whether a truck is being used to transport merchandise around town or to move cargo across the country, owners need to be aware of the types of truck insurance they are required to have, as well as what companies provide the necessary insurance policies. Truck insurance is not optional. The amount of coverage a business owner needs is unique to each situation, and while no one expects an accident, truck insurance will help make the best of a bad situation.
Truck Insurance Basics
When trying to decide among truck insurance companies, there are several different types of insurance to consider:
- Primary Liability Insurance
- Physical Damage Insurance
- Cargo Insurance
- Warehouse and Terminal Coverage Insurance
- Non-Trucking Liability Insurance
- Occupational/Accident Insurance
If a driver is leased to a motor carrier and the motor carrier is providing the primary liability coverage, drivers will want to get non-trucking liability insurance. This type of truck insurance protects the vehicle any time it is used outside of the scope of the lease. Most motor carriers will require their drivers to be covered by either workmen's' compensation or occupational/accidental insurance. For drivers who qualify for occupational/accidental insurance, that can be a lower cost option. In most states, self-employed owner operators can opt out of state mandated workers' compensation coverage and elect to buy the occupational/accidental insurance.
Due to the fact that primary liability insurance does not cover damage to leased/owner operator vehicles, drivers/owners will also want to purchase physical damage insurance. This form of truck insurance is collision insurance that covers damage to the vehicle. The policy should be written for the truck's market value, and no more. The premium for physical damage insurance is based on a limit. Insurance companies will not pay out anything more than the market value of the vehicle, so having a higher limit will cost the driver money with no added benefit.
Lastly, beyond insuring the vehicle, drivers will want to consider the different types of cargo insurance available. Cargo insurance covers the cargo when it is in transit. Warehouse and terminal coverage insurances cover the cargo while it is in a warehouse or waiting at a specific terminal. Before purchasing any trucking insurance, drivers leased to a motor company will want to discuss with them what insurance they are providing so as not to overlap.
Truck Insurance Companies
All truck insurance companies are not the same. It is important to carefully research companies and what they have to offer before doing business with an organization. Some insurance companies focus on truck insurance and others offer it as part of a long list of services. Companies that specialize in truck insurance may have a better understanding of what drivers need in their policies.
Agents who specialize in truck insurance have a background in the industry. They know when drivers need temporary upgrades and when to register insurance with the states. Agents who are familiar with trucks also provide better claims and investigative service. They understand the importance of starting the process immediately, and will not wait until the next day to begin the inspection of the vehicle. A truck is a person's livelihood, and the longer that adjusters wait, the more work is lost.
When a few truck insurance companies are identified, examine the businesses carefully. Look at their financial stability and their experience. You want a company that understands how to work the ins and outs of the industry and also has the financial stability to cover any claims you might submit. Check their rating with national organizations such as the A.M. Best Company. Finally, decide on the price and value of the coverage that the companies offer.