Insurance is something you probably have thought about whether you have been involved in trucking for a long time or are just beginning to get into it. It can be confusing to understand the differences between trucking and insurance, even for the most experienced trucker. You can customize your insurance package by understanding the different types of insurance that truckers buy.
1. Primary Liability Insurance
The type of insurance required for drivers in the United States to be legally on the road is called primary liability insurance. These policies cover drivers for injuries to other people and damages to their vehicles that result from an accident. To be legally licensed to drive a truck, drivers must have coverage up to $750,000 Their insurance policy will pay up to $750,000 for injury or damage to another party in an accident. If the accident is deemed to be your fault and you cause more damage than that, your lawyer can seek additional compensation through your personal savings and wages. Truckers may choose to purchase additional liability insurance beyond the minimum required. Truckers have the option to purchase higher levels of liability insurance to cover the truckers’ injuries and damages to their own trucks.
2. General Liability Insurance
Truckers don’t have to be on the road all the time. Truckers spend a lot of time at truck stop lots waiting for rest stops or loading and unloading. Accidents can happen when truckers are in or out of their rigs. Vandalism and theft are possible as well. If truckers need insurance to protect against damages caused by these conditions, they should consider general liability insurance. This covers damage that occurs in any other conditions than those encountered while on the road. Different insurance companies offer different types and levels of general liability insurance to cover truckers in different situations. Truckers interested in this type insurance should contact different insurance companies to learn more.
3. Motor Truck Cargo Insurance
This type of insurance doesn’t cover your vehicle but only the cargo you’re transporting. This gives both the client and the transportation company the guarantee that the items will arrive at their destination or they will be reimbursed for any loss. Your company may require you to have this type of insurance if you are an owner operator.
4. Non-Trucking Liability insurance
This type of insurance is also known as deadhead or bobtail insurance. It covers your vehicle even if you aren’t working. Most often, your employer covers your vehicle when your are at work. However, your company may not cover your truck if it is parked in your driveway. To protect your investment, you might consider purchasing this insurance.
5. Legal Requirements
Truckers, like any other job, are responsible for meeting all legal requirements and complying with their employers’ requirements. Driving can be dangerous and cause death, injury and property damage. Truckers must adhere to speed limits, safety equipment standards and registration requirements. All 50 states have mandated insurance. This law is not intended to increase trucker’s fares. It is an insurance policy that protects drivers involved in accidents that are not their fault. Additionally, it protects the driver who caused the accident and prevents personal property from being damaged or funds from being used to pay for the accident damages.
How can you determine what insurance is required for your commercial vehicle? And if you own a fleet of vehicles, how can you make sure that your drivers are properly covered?
Numerous private insurance companies have information on the types of insurance needed for truckers to be legal. The National Independent Truckers web page lists the insurance regulations that are required for truckers to get ICC/ MC Authority. These requirements can be broken down into two weight classes: vehicles with a gross vehicle weight rating of 10,000 pounds or greater and vehicles whose GVWR is under 10,000 pounds.
These requirements are important for truckers as ICC/MC Authority must be obtained for every commercial vehicle. Truckers can use the National Independent Truckers website for research, but truckers should also check other official websites to verify the insurance requirements. The government website Regulations.gov allows truckers to search for all relevant federal regulations related to the transportation sector. It is not easy to understand government regulations and insurance companies may try to mislead you to win your business. You can also contact your local DOT representatives and BMV representatives to ask questions.