Why is it that each expense required by law seems so complicated to understand?
I have been a licensed driver 14 years ago and I don’t know how to calculate my annual car registration fees. Taxes? Don’t think about it. To figure out the amount I must pay the IRS, I need to pay someone else.
Although the world of truck insurance can seem as complex as figuring out your tax deductions, it isn’t as difficult as it sounds. There are many technical terms and regulations that vary from one state to another, but truck insurance doesn’t have to be so complicated.
It is possible to use the fact that insurance for trucks can be a variable commodity to your advantage. You can take the hassle out of insuring your 18-wheeled business and save some money.
Breaking down insurance for trucks
There are many specialized coverages available, but there are only four basic types of truck insurance. These are policies that protect your truck, your trailers and your cargo, as well as policies to protect you business.
These are the only types of insurance that law requires, but not all truck drivers will need them all. An independent owner/operator, for instance, might only require the first type and in a limited capacity.
Bobtail insurance refers to the liability coverage provided by independent truck owners during times when they aren’t commissioned or covered by the motor carrier’s insurance. Independents will not need to insure any trailers or cargo unless they make independent deals with vendors.
Primary Liability
This is the basic form for truck insurance that all drivers are required to have. It is very similar to auto coverage. Primary liability covers drivers and other motorists from accidents on the road, including personal injury or property damage.
Comprehensive Coverage
While comprehensive coverage isn’t usually required by law it’s something all drivers should consider. It protects your losses in the event of an accident, as well any losses that may be incurred due to theft, vandalism or other factors.
These policies are the only ones you will need to be a truck driver. You should make sure that you have the right coverage for your state and the vehicle you drive. Semi truck haulers will require different coverage than dump truck drivers, tow truck drivers, and semi truck drivers.
Breaking Down Trailer Insurance
Trucking companies often use trailers interchangeably. This means that the policies mentioned above do not usually cover them. You will need trailer insurance if you are a motor carrier who uses multiple trailers.
Trailer interchange agreements are finishing hauls for trailers of other companies. If you have one, trailer interchange insurance will cover you and the assets of your hauler.
Breaking Down Cargo Insurance
Cargo insurance is another option for motor carriers. If you are operating under another person’s authority, you can get this insurance.
It’s not mandatory for motor carriers, but many customers will insist on it before they sign shipping contracts with you.
The Breakdown of the Rest
Commercial truck insurance is primarily for motor carriers. Workers compensation and primary liability may be required by law. It protects employees and your company from any accidents or incidents that might occur while you operate.
These coverages are not necessary for independent truckers, but it is a good idea to have a basic understanding of them in order to ask the right questions to potential employers.
Tips for Truck Insurance Shopping
Your agent is often your friend. Make sure they make sure you have the right coverage and comply with state minimums. It is crucial to make sure that your insurance provider is licensed in your particular state.
Shop around. There are many commercial insurers, so shop around. Request a few quotes for free to get the lowest rates possible. Before you make a decision on which provider to use for your services, be sure to ask them straight if they can beat the rates you received.
Finally, get to know your business. Know what you haul, and what has happened in the past. Ask your agent whether the coverage they suggest will cover you for similar incidents in the near future.