The foundation of American trade is the trucking industry. Over 70% of the cargo in the nation is transported by 3.5 million heavy-duty trucks.
The Federal Motor Carrier Safety Administration (FMCSA) imposes tight guidelines for insurance coverage due to the high volume of trucks on roadways.
Commercial trucks are significantly more prone to theft than personal cars since they are heavy, dangerous, and able to cause significant damage. Additionally, they contain precious products.
Why is truck insurance mandatory and what are the most important policies?
Yes, truck insurance is mandatory. Now, let’s go through the reasons behind the same alongside descriptions of some critical coverage types.
1. There is no authorization without insurance
Trucks cannot run without the right insurance policy.
The FMCSA, which grants the licenses required to operate a trucking company, won’t offer operational authorization without documentation of your cargo insurance plus liability coverage.
The kind of truck as well as what it transports determine the precise coverage. For instance, transporters of dangerous chemicals are subject to more stringent regulations and increased insurance requirements. The same is true for freight vehicles that transport both people and valuable or priceless cargo.
Types of truck insurance policies
1. Cargo insurance
If the vehicle is damaged, the contents must be protected. Cargo insurance, which covers goods in transit, takes care of this.
Cargo insurance is wise if your business transports goods. However, as per federal laws, you must carry insurance coverage if you move domestic items across state boundaries. Additionally, several states mandate supplementary insurance for specific kinds of shipment.
To make sure they are completely covered by state and federal rules, truckers must maintain continual touch with their insurance providers. For example, insurance providers like Coverwallet offer coverage policies not only for commercial trucks, but also for trailers, vans, and debris removal. You can get tailored business insurance to suit your specific needs.
2. Liability insurance
The load capacity of a truck or whether it’s carrying hazardous items determines the amount of liability coverage that is legally necessary.
As it defends the general public from harm in the instance of a truck collision, it is occasionally referred to as public insurance coverage.
When transporting non-hazardous commodities, a truck must have a liability prescribed limit of $750,000 and typically weigh 10,000 pounds.
Therefore, the authorities will recover from the plan and pay for the damages to be repaired if a truck driver has an accident that results in $500,000 in harm to a public highway.
Given the risk and cost of tidying up toxic spills, liability plans for trucks hauling hazardous products must have much higher coverage levels. For trucks, which transport radioactive substances, explosives, gas, or anything else that is toxic by breathing, a $5 million insurance should be kept at all times.
Damage to property and personal injuries are both covered by liability insurance. The liability insurance covers any healthcare expenses incurred by pedestrians or another driver as a consequence of a trucker’s negligence.
3. Voluntary coverage
There are several typical optional coverages within the trucking business as well. Although they are not legally needed, this is a great method to safeguard expensive trucks.
Trucks are covered for physical damage mostly in the event of floods and fires. It also addresses theft, a significant problem in trucking.
Trucks are covered by non-trucking liabilities, also known as bobtail insurance and deadhead coverage, while they are traveling in the absence of a trailer (known as deadheading) and whenever they are off the route for maintenance.
4. Personal Injury coverage
All drivers in Florida are required to have personal injury protection (PIP) insurance, regardless of whether they are operating small cars or massive semi-trucks.
Regardless of responsibility, drivers are covered by PIP coverage up to this policy’s maximum. PIP is intended to assist in covering accident victims’ injury-related costs.
It covers 60% of lost wages owing while being unable to operate, 80% of supposedly “fairly priced” healthcare bills, and up to $5,000 in compensation in the event of a fatality.
5. Additional coverage options for truck drivers
Other coverage options are available for a trucking company to choose. They consist of the following:
- Collision insurance – This covers truck damage in the event of an accident.
- Hired truck insurance – It provides liability protection in the event that someone operates a truck that they do not own.
- Property insurance – Your facility and any parking lots where trucks could be housed are protected by property insurance.
- Workers’ compensation insurance – It covers medical expenses and disability benefits for people hurt at work.
- Cyber insurance coverage – Cyber crimes like security breaches, credit or debit card problems, and other hacks are all covered by cyber insurance coverage.
- Health insurance – Employer advantages like health insurance assist in luring in top talent and preserving their health.
Conclusion
It goes without saying that truck accidents are terrible. Given that semi-trucks often weigh 10 times as much as passenger cars, it is clear the kind of harm they are capable of causing.
Victims of truck crashes have the option to phone 911 to describe the collision. Not only would there be ambulances, but there would also be cops.
A police officer will file a report on the collision. This incident may prove to be highly valuable proof in the victim’s defense. Pictures or videos of items like tire tracks, all the accident-related automobiles, and any potential spilled goods from the truck’s cargo compartment are valuable proof.
A personal injury lawyer will enter the scene and come to a solution. When finances are involved, your truck insurance will come in handy
FAQs
Q1. How much does truck insurance cost?
A1. The price of truckers’ insurance is influenced by a number of variables.
While the majority of insurance companies do not provide truckers insurance, the ones that do might have to check your driving history, vehicle age and quality, the sorts of cargo you carry, your expertise, and your record of prior claims.
These elements may influence how much your insurance will cost. The cost of trucking insurance can vary based on the number of trucks you possess and is typically pretty high.
For instance, if you just have one truck, you might spend $8,000 a year, while anyone with multiple trucks might pay more.
Q2. What does the phrase “non-trucking insurance” mean?
A2. Bobtail liability insurance, commonly referred to as non-trucking insurance, is a sort of liability protection when you are using your company vehicle for private purposes.
Non-trucking insurance provides protection against potential third-party damage to property and personal injury.
Furthermore, non-trucking insurance provides coverage for any costs that can result from mishaps that happen while you are traveling for personal reasons and not for work.
Non-trucking insurance, though, does not offer liability protection for commercial use or when transporting any kind of machinery from your vehicle.
Q3. What distinguishes non-trucking insurance liability from bobtail insurance liability?
A3. The difference between non-trucking insurance and bobtail insurance is that the latter provides coverage regardless of if you use the truck for commercial or personal purposes, whereas the former does not.
You as well as your vehicle are covered by bobtail coverage, but only while you’re not towing trailers or any cargo. If you use your vehicle for non-trucking purposes, such as doing grocery shopping, dining out, or even moving soil for domestic usage, you are covered in mishaps.
Q4. Which kind of coverage do I require to operate a trucking business?
A4. The type of truck insurance you require may rely on your transportation business’s size, the number of workers, the location of your vehicles after-hours, and other factors.
The following are some typical forms of truckers insurance: primary liability, bobtail liability, non-trucking liability, general liability, and cargo insurance.
Mainly liability insurance is a legal requirement for truckers in all 50 states and covers the expenses for people hurt in fatalities caused while driving.
Based on the conditions of your business, you can choose one or more of these insurance plans or even look into other kinds of truckers’ insurance.
Q5. What is unladen insurance?
A5. Unladen protection:
- Covers you while driving your vehicle with and without a trailer, whether it is hitched or not.
- Is a relatively recent sort of insurance that has lately grown in popularity since its coverage conditions are more flexible.
- Is more comprehensive than bobtail and non-trucking insurance, and it will protect your truck as well while you are bobtailing from and to the port or between shipments. Even if you use your vehicle for work or play, you are still covered by this insurance.
Q6. What is the location of my DOT (departments of transport) number?
A6. By going to the FMCSA website, you can quickly obtain your DOT number or file a petition for a fresh one.
Be careful to bring the following documentation when applying for a fresh DOT number:
- Social Security Number (SSN) or Employer Identification Number (SSN)
- A number from Dun and Bradstreet (if available)
- Titled company officers
