Commercial truck insurance is a must have for owner-operators or small businesses offering trucking services. Since most policies are primarily geared towards big companies, truck insurance can be a costly expense for firms owning only one or two vehicles. The available policies differ according to the type the good carried, risks incurred, type of truck and the driver’s experience in terms of time spend driving similar vehicles. To choose the right insurance package for your trucking business, you’ll need to choose from a number of different coverage types, and understanding how these work will help identify the needed options.
Types of truck insurance policy:
- Basic coverage
Policies that fall under this category typically consist of comprehensive vehicle insurance and collision damage coverage. Collision insurance includes both cover for damage on the other vehicle if it is established that the accident was your fault and damage to your own vehicle. On the other hand, comprehensive insurance is similar to ordinary vehicle insurance and covers cost of repairs to your vehicle up to a pre-set maximum value, when it is involved in any other accident apart from collision.
- Specialised coverage
Specialised coverage is geared towards providing companies that offer trucking services a range of insurance options to choose from. Truckers need coverage for every possible scenario that the truck could be involved in, without jerking the price up to unaffordable amounts. For example, a company offering cargo transport for its customers needs to take commercial auto liability, which covers cost of bodily injuries as well as damage to property belonging to others, in addition to basic vehicle coverage. Cargo insurance covers the cost of damage or loss of cargo, depending on the value and type of cargo being transported.
- Non-truck coverage
Truck owners may also need to take certain insurance policies that are not related directly to cargo transport. These include non-trucking liability coverage, bobtail insurance, occupational accident coverage as well as coverage for valuable personal items in the truck itself. You can also take non-trucking liability insurance, which covers damages incurred when the vehicle is not transporting any cargo, or when it is not hauling a trailer. Lastly, there is occupation accident cover that provides financial protection to the truck owner in the event of dismemberment or accidental death that occurs when driving the truck.
Regardless of the type of insurance policy you choose to take, premiums are always paid monthly and in advance. These payments can also be combined with truck payments if you used a dealer to purchase your insurance package. This may however, turn out to be more costly than dealing with the insurance company directly. All premiums are payable for the entire period the policy is set to cover. While you may choose to cancel at any time without affecting your credit score, you will still be liable for all premiums due prior to the date of cancellation. The insurance company may set higher premium if your truck driver has a bad driving record.
The insurance company may also take the deductible you choose or qualify for into consideration when setting your premium. Drivers who have been involved in accidents before tend to have higher deductible due to the higher risk taken by the insurance company. Deductibles are typically paid first when a claim is made. For trucking companies with safe, accident-free drivers, setting low monthly premium and high deductible is the bet option