What is Commercial Trucking Insurance?

Unlike typical auto insurance, commercial trucking insurance is much more expensive. There is much more an independent owner-operator must consider to give their business the best protection. 

There is an overabundance of different types of trucking insurance policies to choose from, but the right commercial trucking insurance policy is out there, waiting for you.

Types of Commercial Trucking Insurance 

• Primary Auto Liability

  • Basic insurance that covers damages that you are held responsible for in a collision. Required for every one of your trucks.

• Motor Truck General Liability Insurance 

  • Pays for damages and injuries that are incurred from commercial use such as providing such a service as truck driving.

• Physical Damage. 

  • Covers the cost of repairs to your own vehicle if it’s damaged by you or it is damaged by some other factor that you cannot be held responsible for. 

• Bobtail coverage 

  • Liability policy that provides coverage for legal fees, damages awarded, and medical expenses for times when a truck is driven under someone else’s trucking authority and no trailer is attached.

• Non-trucking Liability

  • Offers protection when a truck is driven for personal reasons.

• Motor truck cargo

  • May cover the cost of the damaged cargo, removal expenses if the cargo is spilled, lost cargo, legal fees, and freight charges if the cargo is not delivered.

• Rental Reimbursement with Downtime

  • May cover the cost of truck payments and other bills while the truck is inoperable due to a covered loss. 

• Garagekeepers and On-hook

  • Provides protection in the case of damages to a vehicle while it is being towed

• Trailer Interchange 

  • If a trailer is damaged, the trucker currently in possession of it would be responsible for them. Trailer interchange insurance offers protection for damages for the period of time the policyholder is in possession of the trailer.

What Commercial Trucking Insurance is Required for your Company?

Commercial auto insurance is a requirement for truck drivers. Federal regulations require all commercial trucks have Primary Auto Liability insurance. 

Liability insurance will help your business cover associated fees if you are found responsible for losses experienced by a third party. 

Should you Have Freight Insurance? 

YES. Motor truck cargo insurance protects the contents of your cargo. If you experience damage to cargo, motor truck cargo insurance will help cover the loss. 

Companies will want to work with your trucking business if you have freight insurance, and it protects their cargo while protecting your wallet, a win-win! 

What Commercial Insurances are the Most Important to Purchase for a Trucking Company?

 When it comes to choosing the right trucking insurance package, you will have to decide on what is necessary. If you want every possible coverage, full coverage truck insurance is the right choice for you. 

If you feel some are not necessary for your company but want to be certain, click here, to talk to one of our agents. Let us guide you through the ever-so-confusing waters of trucking insurance.  

How do you Lower your Commercial Trucking Insurance Premium?

• Hiring good and experienced drivers

  • As with personal auto insurance, insurance companies will charge more if a driver has less experience or a bad driving record. Stay clear of drivers with many violations or accidents to keep premiums lower. 

• Optimize the driving routes of your trucks 

  • Having consistent routes can lower the risk of an accident because of increased familiarity. Avoid risky routes that pose a threat to your truckers. Avoid densely populated routes, and observe road conditions, infrastructure, and weather to maximize the safety of your route. Insurance companies recognize lower-risk routes and will award you with lower premiums. 

• Observe your Cargo type 

  • Your premium for freight insurance all depends on what type of freight your commercial truck is hauling. Assume if you are hauling expensive cargo, your premium will be higher than if you were carrying freight of low value. Weigh out if the cargo type you are hauling is worth the associated premium.

• Using reliable and up-to-date trucks

  • It will pay off to have high-quality newer trucks for your drivers. Always ensuring your trucks are properly maintained and have safety features to avoid accidents can help save on your premium. If there are fewer repairs and replacements needed for your commercial trucks, you typically will receive a lower insurance premium.

• Having a higher deductible 

  • Similar to personal auto insurance, having a higher deductible can help save on your premium. While you will pay less monthly, if you do not have the funds set aside for repairs, it could be detrimental to your wallet. To learn more about deductibles, click here to read our informational blog!

Key Takeaways

Commercial Trucking Insurance is necessary. The potential costs of damage are higher simply because a truck will have a bigger impact in a collision.

Find comfort knowing you are properly insured by letting us make insurance easy. 

Contact one of our insurance agents today by clicking here for more details on covering your commercial trucks.