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Commercial Truck Insurance

Commercial Truck

Whether you are considering getting into the trucking business, just started trucking or have owned a trucking businesses for years, commercial truck insurance is one of the major investments you will have to make as owner of a trucking business. It is one of the most important decisions you will make for the life and wellbeing of your business. Running a trucking business is challenging task in itself, where you don't want to worry about the possibility of suffering a large financial loss from an unfortunate accident or theft. Commercial Truck Insurance will protect you against the most common risks to a trucking business, such as: Vehicle damage, lost business from interruption, theft, third party and other liability and employee injury. By all accounts, getting the appropriate kind of commercial truck insurance can be the difference between going bankrupt after a serious financial blow or getting back on the roads with minimum financial loss and business interruption.

Understanding commercial truck insurance can seem difficult and confusing for even experienced truckers, but once you understand the basics, you will be much better equipped to customize your insurance package. Trucking insurance usually includes four different areas of cover: Primary Liability (Third Party Liability), General Liability, Motor Truck Cargo and Non Trucking Liability.

Primary Liability Insurance is the insurance necessary to drive legally on the road for any kind of motor vehicle. Primary liability provides coverage for other people injuries or damage to peoples property as a result of an accident in which your truck was involved. Truck drivers are required to have at least 750.000$ worth of coverage to drive legally on the roads. If the accident is determined by a court to be your fault you will have coverage for this amount. In the case where the damage done is greater than this amount, you may be required to pay the remaining costs. This is why some truckers decide to get a higher insurance limit just in case.

General Liability Insurance is insurance against accidents that can happen when you are not on the road. Truckers spend a lot of time of the roads, such as during loading and unloading or in rest stops and accidents can and do happen here too. Theft and vandalism in particular is a common occurrence. General liability insurance cover these situations. The specific conditions of coverage vary from company to company, so you should always ask around first to find out.

Motor Truck Cargo Insurance

This insurance type covers the cargo and goods that you are carrying. It is not a mandatory requirement by law, but your client may require you to have it. This policy assures both you and your client that your cargo will arrive safely where it is heading or the cargo value will be compensated if it is lost, stolen or damaged. You choose your maximum limit when you sign the policy. Different clients may have different requirements as to how much insurance you have, so as with liability insurance it can be a smart choice to get a higher limit.

Non-Trucking Liability Insurance

This type of insurance is also called deadhead or bobtail insurance and covers your truck while you are not working. Typical insurance only covers your truck when you are on the road working, while you are personally responsible when the truck is in your driveway or in the repair shop. Signing this insurance covers all bases.

What determines the price of commercial truck insurance?

Commercial truck insurance is relatively speaking a lot more expensive than other types of auto and vehicle insurance. Because of the sheer size and weight, trucks are much more likely to inflict serious damage and injury in the case of an accident. This implies that insurance companies will have to pay out much larger sums in compensation than for other kinds of auto related accidents, so they charge higher premiums as a precaution. There are also other risk factors associated with trucking, such as long and many hours on the road and the fact that many drivers despite regulations still have very long shifts and risk becoming mentally lazy. That being said, the premium for commercial truck insurance depends on several factors:

Driving Record
Location of Garage
Primary Liability Limit
Operation Type Age and Condition of Equipment.

So as such it is not much different from regular auto and vehicle insurance, meaning there are several steps you can take in reducing the premium by hiring responsible drivers or driving safely if you drive the truck yourself, as well as choosing the liability limit carefully to match your needs.