Commercial or Owner Operator Truck Insurance Florida: Insurance vs a Savings Plan

If you had enough money saved up and if some types of Florida commercial or owner operator truck insurance were not required, you could theoretically do without insurance. However, primary truck liability is required by law, and physical damage insurance with equipment you have financed is likely required by your lender. On the other hand, a savings plan is a viable alternative to taking out other types of insurance such as cargo insurance.

Is this a good idea? It could be if you already have a considerable savings in place. The nice thing about savings is that it earns interest until it’s needed. However, given the risks of commercial or owner operator truck driving, the odds of actually using your savings because of an accident or some other event such as cargo theft is not that remote. If you have sufficient savings, you may need all of it tomorrow or two years from now. Once used up, it’s gone and then you aren’t covered against further losses.

Putting away enough savings to cover multiple incidents (such as theft or an accident) is an enormous amount of cash that is sitting around doing nothing except earning interest. If you’re an owner operator, that money is better used growing your business. The increased profits from an expanded trucking business would surely exceed the interest earned from a savings account.

There is another problem with relying on your savings: many of your potential customers will require that you have cargo insurance. Not having the insurance reduces your customer base by a sizeable amount. That, in turn, hurts your business.

On the other hand, if you don’t have the savings in place but are putting some money into an account every month, you are gambling that an accident or theft won’t happen while you build your savings. As mentioned previously, an accident or theft could happen tomorrow or several years from now. You are risking your business, your livelihood, and your personal assets.

The Middle Ground

The insurance vs a savings plan was posed as an either/or choice. The reality is that you can do both. Take out Florida commercial or owner operator truck insurance and build up a savings over time. Use your savings as a deductible in your insurance plan. If this appeals to you or if you’re just interested in Florida commercial or owner operator truck insurance at affordable rates, contact us and we can discuss the details.

David Ott

David Ott