A Guide To Commercial Trucking Insurance: How It Works

There will be many different types of coverage included in an insurance package for your business, so knowing how they work can help you determine which options are appropriate. Learn about the different types of coverages.

Basic Coverage

Collision insurance and comprehensive coverage are the two basic types of coverage. A collision damage policy covers both the damage to your vehicle and that of the other driver’s if you cause an accident due to your negligence. The general purpose of comprehensive motor vehicle insurance is to cover the cost of repairs to your cars that are not covered by collision coverage up to a maximum value.

Specialized Coverage

Many insurance companies offer specialized options for commercial trucking. Your truck should be covered for all possible situations without raising premiums beyond affordability. Additionally, alongside basic coverage, commercial auto liability is vital for truckers transporting cargo for customers. This will cover financial damages related to others’ property and bodily injuries. The cost of cargo insurance required to cover damages varies depending on the value and type of cargo.

Premiums

Your insurance premiums are billed in advance on a per month basis. Insurance can be purchased through the dealer and combined with truck payments, but this might cost more than acquiring it directly from the insurer. You will have to pay premiums throughout the policy’s duration. Cancellation at any time won’t impact your credit score, but you are responsible for paying the remaining premiums until the cancellation is effective. Bad driving records may result in higher premiums.

Deductible

Part of your premium is determined by your deductible or which you are eligible for one. The insurance company will charge a higher deductible to drivers who have a history of accidents, due to the increased risk. In the event of a claim, the deductible is paid first, and ranges from $500 to $2,000.
If you do not want to face a high deductible, consider a low deductible and a higher premium. The insurance premium is lower when the company hires experienced and accident-free drivers, in such a case, higher deductibles and lower premiums make sense.

General Liability Coverage

When a trucker is operating on another’s property, the general liability coverage will protect him from being sued for his actions. Under this policy, any mistakes or mishaps made by the truck at loading docks or truck stops will be protected.
Mistakes made in loading or delivering the driver’s load are also covered by general liability insurance.

Physical Damage Coverage

Physical damage coverage is another option for commercial truck insurance. Business owners who might need repair or replacement of damaged trucks or equipment should consider this insurance.

Is Trucking Insurance Necessary?

Commercial trucking businesses need insurance to protect themselves from potential risks. Business owners should consider the above options when it comes to commercial insurance for trucks.
Finding the right trucking insurance provider is key to getting the most value for your money.