Everything You Ought To Know About Buying Commercial Truck Insurance

An accident or a lawsuit can devastate your trucking business. Companies need protection against unexpected conditions with effective insurance coverage matching owner-operator truckers’ risks.

As an owner-operator, you may think you can leave everything that has to do with insurance to your broker; this is not the best thing to do if you want to maximize the protection of your trucking business. Primary liability coverage is not enough to cover the potential issues you may face in this industry.

Commercial truck insurance usually is confusing for new-owner operators. If you have questions regarding trucking insurance, you have come to the right place. Here we go deep into the world of trucking insurance to give you the best business coverage for maximized protection.

Commercial Truck and Owner Operator Truck insurance

The insurance is a necessity not only for the company but also for the truck drivers. To begin with, the Federal Motor Carrier Safety Administration (FMCSA) cannot let you set up and operate without insurance. It is best to avoid situations where your insurance cover does not properly cover losses when you need them most.  

Here are some of the trucking insurance policies that you may need for your trucking operation:

  • Bobtail Insurance: It covers your trucks after delivering a load and is not being used for any trucking purpose.    
  • Non-Trucking Liability Insurance: It provides coverage for trucks used for non-business purposes on their days off. 
  • Mechanical Breakdown Insurance: It covers any out-of-pocket repair expenses.
  • Limited Depreciation Coverage: It covers the gap between a fair market value that the insurance company is likely to pay out and what you owe on the truck or the cost of replacing a damaged vehicle.
  • Motor Truck Cargo Insurance: Covers any non-hazardous freight and liability for cargo.
  • Motor Truck General Liability Insurance: It covers motor carrier or for-hire truckers when there are claims for medical payments, bodily injury, property damage liability, personal injury, and advertising injury liability.
  • Optional Downtime Coverage: This policy will take effect when your commercial truck undergoes downtime.
  • On-Hook Coverage: It covers trucks not owned by your trucking company during hauling or towing.
  • Trailer Interchange Agreement Insurance: Offers coverage for any physical damage on non-owned trailers.
  • Physical Damage Coverage: It protects your commercial trucks when physical damage occurs.   
  • Rig Insurance: It helps your trucking company evade financial losses due to damage to machinery and other calamities.  
  • Uninsured/Underinsured Motorists: It protects you if another vehicle hits you, but they don’t have liability coverage to repair whatever you need to be fixed on your trucks.
  • Medical Payment: Covers all medical bills for a driver or a passenger who gets injured when driving or riding in your truck. The coverage varies from state to state due to different regulations.

The Cost of Commercial Truck Insurance

The general cost of trucking insurance ranges anywhere from $8,000 to $22,000. However, these figures are only averages and may not mean anything to your company.

It is best to understand how to compare insurance prices to get the best value for your money. It is common for insurers to throw out quotes that sound great and far cheaper than competitors to attract clients. However, these may not be the best coverage for your trucking company’s insurer.

Get prices from several insurance companies, then settle for the one that offers more value for money. Also, consider the insurance company’s reputation before working with them. Reputation will assure you that you are partnering with an established company in the trucking business. They’ll likely handle all possible accidents and losses.

At J.E.B. Insurance Services, L.L.C., we pride ourselves on the premier commercial truck insurance agency in nine states: Florida, Georgia, Texas, South Carolina, North Carolina, Iowa, Illinois, Nebraska, and Tennessee). Our qualified team of insurance experts specializes in underwriting insurance for owner-operators. Contact us today to receive a risk-free quote. 

David Ott

David Ott