The 10 Types of Commercial Truck Insurance and their Requirements

Are you an investor or venturing into the commercial trucking industry and seeking a reputable insurance service provider? Do you know the different types of commercial truck insurance and their requirements? Commercial truck insurance is a legal requirement for any small business or owner-operator providing trucking services. 

Insurance coverage is one of the most expensive costs for truck owners. The premiums need significant upfront cash and monthly payments that can run into thousands of dollars.

What Is Commercial Truck Insurance?

Commercial truck insurance is a policy that protects a truck owner from any costly liability should the truck be involved in an accident. Commercial truck insurance covers situations where one uses a truck to transport materials, animals, products, and customers. The law requires commercial trucks to have primary liability coverage to protect people and property from any damage a truck causes.

Commercial Truck Insurance Requirements

The Federal Motor Carrier Safety Administration (FMCSA) has enacted mandatory coverage minimums for trucks to ensure that truck accident victims get compensation. The requirements are based on the type of material a truck hauls. In addition to the federal trucking requirements, truck drivers and trucking companies must meet state compliance that may vary from one state to another.

Here are the mandatory FMCSA insurance minimums for trucks;

•    $300,000 for trucks under 10,001 pounds that don’t haul hazardous material

•    $750,000 for trucks over 10,000 pounds and don’t haul hazardous material

•    $1.000,000 in coverage for companies and private drivers hauling oil

•    $5,000,000 for trucks hauling hazardous material other than oil

Types of Commercial Truck Insurance

Here are 10 types of insurance policies that a truck owner may need depending on the situation;

1.    Primary Auto Liability

Primary auto liability is a legal requirement by the federal regulations for all commercial trucks to hold commercial auto insurance. The liability insurance policy protects you if a third party is involved in an accident.

2.    General Liability

All states require commercial trucks to have general liability coverage. The policy covers a truck owner from your driver’s property or body liabilities. It also covers the driver’s actions on third-party premises, such as loading docks, truck stops, and loading mistakes.

3.    Physical Damage

Physical damage insurance covers a commercial truck and trailer for damages arising from;

•    Collision
•    Theft
•    Vandalism
•    Natural disasters

If your truck is damaged beyond repair, the coverage compensates for the truck’s value. The truck’s value determines the premium you pay to the insurance provider.

4.    Bobtail Insurance

Bobtail insurance covers an off-the-dispatch driver or driver driving a truck without a trailer when the primary liability coverage does not cover the owner-operator. Bobtail is often confused with Non-trucking Liability Insurance, which covers a truck under personal use.

5.    Mechanical Breakdown Insurance

It’s an insurance policy that covers a truck owner from out-of-pocket expenses when the truck breaks down and needs to be repaired.

6.    Limited Depreciation Coverage

It covers the gap between the cost to replace a truck or what you owe on the truck with the insurance fair market value if your truck is declared a total loss or write-off.

7.    Cargo Insurance

Trucks need cargo insurance to protects you from liability if the cargo you are transporting in the truck is damaged or lost. The premium depends on the type of freight.

8.    Trailer Interchange Agreement Insurance

Trailer interchange insurance provides coverage for trailers operated under the trailer interchange agreement, which is physical damage insurance for non-truck owners. The policy covers the trailer from theft, fire, collision, vandalism, and fire.

9.    Passenger Accident Insurance

The coverage covers the driver if the truck is involved in an accident with an insured passenger onboard

10.    On-Hook Coverage

The policy covers replacing or repairing third-party motors not owned by your business while hauling or towing. The policy covers against fire, collision, explosion, theft, vandalism, and explosion.

What Is the Cost of Semi-Truck Insurance?

The overall cost of semi-truck insurance depends on many factors, such as driver record, cargo type of truck, and the business model. Trucks hauling heavy-duty cargo need special rig insurance depending on the type of cargo and truck.

Are you a commercial truck owner seeking to insure your truck or fleet? Are you looking for a reliable, tried, and testedinsurance provider? Schedule a call or request a free quote today. We have comprehensive insurance solutions to keep your drivers and trucks on the road.

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David Ott

David Ott