As a commercial truck driver, one of the most significant considerations is the insurance that you need to have. There are a lot of different policies that a commercial truck driver could get, but to make the right choice, understand the options. The main options you can consider in Illinois are owner operator insurance and commercial truck insurance. Here are some insurance options explained.
Owners Operator Insurance
When operating under your authority, you are classified as an owner-operator. Owner-operators include anyone who has their vehicle and solicits services or products, whether or not they are for hire or compensation. The insurance protects the operator, business, and trucks against liability, damages, and injuries.
Commercial Truck Insurance
The commercial truck insurance covers not just the owner-operator but also the commercial truck itself. The coverage will vary depending on your needs. If you are hauling for another company, your insurance may be different from an independent owner-operator. Commercial truck insurance is a federal requirement, but many state law enforcement agencies also ask for it.
Semi-Truck Insurance
For a semi-truck, you need two insurance types, physical damage, and primary liability insurance. You might also need general liability, cargo coverage, and workers’ compensation if hauling for someone else.
Bobtail Insurance
Bobtail insurance, a liability-only policy, covers you when you’re responsible for an accident when driving under someone else’s trucking liability. Insurance companies will generally offer a bobtail insurance policy for different trucks, including straight truck owners and trucking companies.
There are critical differences between Commercial Truck Insurance IL (CTI) and Owner Operator Insurance (OO), but both insurances play a significant role in protecting your business. Here are some key factors to consider when deciding between the two.
The Number of Trucks and Drivers
The number of trucks and drivers in a fleet differentiate between owner-operator and commercial truck insurance. The owner-operator will have one or more vehicles, and it’s part of commercial truck insurance. Commercial truck insurance varies depending on the number of drivers under your authority. For example, if you have five employees, you will need to search for commercial truck insurance with up to five drivers included.
The Type of Ownership
There are various ownership types, including sole proprietor, partnership, and corporation. When trucking as an independent contractor, you are considered a sole-proprietor for insurance purposes.
You can choose to have your own company or work for another company under an owner-operator status. For commercial truck insurance in Illinois, you need to select a policy that includes owner-operators so you can be covered as a business and an individual.
Preferred Carrier List
This list gives the breakdown of the carriers you have used or plan to use in your line of work. A carrier is a company that agrees to provide coverage for goods shipped, auto hauling, and other services offered by owner-operators. If you have been with a particular carrier for five years or more, you are most likely on the preferred carrier list.
Commercial Truck Insurance Illinois Requirements and Rates
- The commercial truck insurance Illinois rates depend on several factors such as:
- Type of goods hauled
- Number of miles driven
- Driving record Cargo type and weight
- Collision and comprehensive damage to other vehicles
- Previous claims against your company
- Age, experience, and driving records of the employees
- Terrain type
- State requirements
Aside from these factors, your commercial truck insurance Illinois rate will depend on the type of business. Sole proprietorships are cheaper than corporations or partnerships in terms of premiums.
For a trucker seeking cargo insurance, physical damage, and liability, the cost is about $9,243 to $14,905 per year in Illinois. As you will realize, many factors affect insurance costs. One of them is the insurance provider you choose. To reduce the truck insurance cost:
- Have a clean driving record and avoid accidents
- Use a more efficient truck with advanced safety features
- Keep professional, well-trained, and experienced drivers
- Keep within the legal load limits
- Increase the deductibles
When choosing the insurance provider, some key considerations and tips to remember are:
You still have Control over How Much Insurance to Pay
Although the insurer decides how much you should pay at the end of the day, there are some things you can do to reduce or control the cost.
More expensive trucks mean more payments, but it’s worth it. Additionally, how you use the truck, where you drive, and your driving habits affect the insurance cost.
Understand the Payment Options
Providers give you the option of paying monthly, quarterly, semi-annually, or annually. You can also pay through automatic withdrawals from your bank account. It is up to you which payment option suits you best, but you shouldn’t go for the last-minute billing options. Annual payments might be less costly and more manageable compared to monthly payments.
Do Not Choose the Cheapest Provider
Some companies claim to have the cheapest truck insurance policies, but you should not choose based on price alone. Research first on their background and track record. Make sure they have policies that suit your specific needs as a trucker. Also, consider the insurer’s financial stability and customer service.
Comparing Insurance Rates is a Must
When making comparisons, you should also consider those factors not listed in your quotes, such as payment methods, coverage, and discounts that only your provider offers. You can still compare prices without disclosing information to other insurers.
Know the Amount of Liability Coverage Needed
Understand how much liability coverage you need by carefully analyzing the types of goods hauled as well as the risks involved. It would be wise to have more liability coverage if transporting a high-risk cargo since accidents can cause severe damage.
It’s also important to know the occurrence and aggregate limits. The occurrence limit is the maximum amount paid out per claim, while the aggregate limit is the sum paid out annually.
Discuss All Details with Your Insurance Agent
Do not shy away from asking your agent questions about coverage, limitations, and exclusions. Doing so should help you better understand the policies. JEB Insurance is an excellent place to start when trying to understand truck insurance.
Other than Illinois. JEB Insurance offers commercial truck insurance in Florida, Georgia, Texas, North Carolina, South Carolina, Tennessee, Iowa & Nebraska.
Reach out to us for more information on truckers’ insurance and how to get the best insurance quotes.
What is more, we offer free quotes on our website.
