How To Choose The Best Commercial Truck Insurance In 2023?
Do you know choosing the best commercial truck insurance is an essential decision in your trucking business? You might be a truck driver or a business, or you have just started the business; having truck insurance is one of the best decisions in your life. Whenever you claim the insurance, you should have the trust that it will help you get the best reimbursements which not only reduces your liabilities but also lower the amount you have to spend during the season. It means you need to vet the company which will be providing the easiest and fastest insurance claims, and the agent will be available to make the whole process quick.
Even if you have the best drivers driving your truck and you haven’t taken a claim before, it is always better to be ready for any mishappenings. As we understand, in this business of trucking, it is always better you prepare yourself. It is because we never know when we may come across any mishappenings. Moreover, it is always best to keep the best insurer in partnership. After which it helps in the faster processing of claims.
Let us understand what Commercial Truck Insurance is and how many types of insurance there are.
What Is Commercial Truck Insurance? What Are Its Types?
Commercial truck insurance is an essential coverage that is needed by your business to secure your truck from costly bills. If you are a driver or a has a business, you must know it is mandatory by the government to have truck insurance for driving on the roads. The types of goods which are there to be transported contain animals, products, goods, and materials from one place to another.
We know the insurance is not cheap; thus, you cannot keep changing companies every now and then. Therefore, we have a guide for you. This guide will help you choose the best trucking insurance for you.
There are many types of insurance which you can buy as per your likes and requirements. Here are a few of them:
- Auto Liability
- Bobtail Insurance
- Cargo Insurance
- Contingent Cargo
- Dump Truck Insurance
- Flatbed Insurance
- Freight Broker Insurance
- Excess Insurance
- Hired & Non-Owned
- Moving & Storage Insurance
- Motor Carrier Insurance
- NAFTA Truck Insurance
- New Venture Truck Insurance
- Physical Damage Insurance
- Tow Truck Insurance
- Reefer Insurance
- Trailer Interchange Insurance
- Trucking Cargo Insurance
- Trucking Auto Liability Insurance
- Trucking Physical Damage Insurance
- Umbrella Insurance
- High-Risk Truck Insurance
- ICC Insurance
- Intermodal Insurance
- MCS90 Insurance
- Truck Driver Insurance
Let us define a few of the coverages which are in commercial truck insurance.
Primary Auto Liability
It is a very basic trucking liability that covers injuries, wounds, and damage to others when there is an accident. When you apply for CDL or commercial driver’s license, you will need this insurance. This will protect the other drivers, and you will need it when you drive a truck on the road.
Physical Damage
If you are in an accident and your own truck is sabotaged, physical damage coverage will help you to fix or replace your truck completely. Even though this coverage may cost a bit more, it will protect you if you cause an accident. It will keep your truck safe and will also keep your job safe. If you think you don’t need to have this coverage, an accident could leave you with massive bills and also buy new trucks and equipment.
Bobtail Insurance
Bobtail coverage, which is also known as “non-trucking liability,” is insurance for when a truck driver is operating the vehicle for personal matters or when he or she is not on the job. If the owner-primary operator’s liability insurance doesn’t cover a scenario, bobtail coverage will. But bobtail insurance doesn’t cover truck drivers when they’re pulling a trailer, using a truck to make money, or driving a commercial vehicle for a freight company.
Motor Truck Cargo
It covers the freight or goods and the liability for the cargo. Motor truck cargo insurance is one of the best types of commercial truck insurance for truckers who drive for other people. This option can cover losses caused by fire, collision, or being hit by something. This can also include protection to charge for the removal of the debris and the stopping of further damage to damaged cargo, legal defensive systems, and the customer’s lost freight charges.
Rental Reimbursement
Do not worry if you have a rental; then, the insurance will pay for all the charges for the time your vehicle is in the repair zone. The insurance will reimburse all the costs of the rental from the time of the accident to the time the truckis parked for repair and maintenance.
Trailer Interchange
Trailer Interchange insurance covers damage to trailers. This is basically physical damage insurance for trailers. Therefore, most of the time, the company does not have it in its possession. This insurance protects you if the trailer is in a crash, by fire, theft, a blast, or by vandalism by some party or an individual.
Medical Payment
During the accident, if someone is injured, the insurance company will reimburse all the money which is spent during the hospitalization. There are times when that hospital isn’t on the list of insurance companies, so it is always best to choose a company that has a maximum number of hospitals on its enrollment list.
Tips On How You Can Keep The Insurance Costs Less
Claims & Reimbursement Policy
The way a company makes money should either give you the confidence to trust them with your money or make you change your mind. When it comes to truck insurance, the company you choose should have enough money to make sure you get paid if an accident happens. You don’t want to get your truck insured by a company with shaky finances. Before you choose a company, you can use the help of a broker to find out how financially stable each one is.
The reputation of the Insurance Company in the market
You need to take the reputation of the company in reasoning which insurer to choose. It is because if they do not have a good reputation, then you will also issue. Moreover, you need to know where the company is operating from. Therefore, you need to confirm if they have good ratings on the web and with the federal government. The company should have at least ten years of experience in selling insurance. It is because it will explain the corpus they must have saved for their customers.
What is the budget of the insurer
Many different insurance companies provide different prices for the same insurance, but they charge more because they have better services than other companies? Moreover, they have many add-on services that you might not need. Therefore, it is always better to talk to the companies through a broker as it reduces the costs, and you also get to know other add-ons, which are usually hidden if you go directly to the companies.
Customer Service & responsiveness of the company
You want to do business with a company that cares about you as a customer and can help you whenever you need it. Do they give free advice on how to avoid accidents and how to stay safe? Will they let you know about changes or new requirements? Do they have a way to handle logistics around the clock? Commercial truck insurance companies that adhere to these guidelines are the best to collaborate with and will most likely give you the safeguards you need.
FAQs
Q1. What is commercial truck insurance?
Ans. Commercial truck coverage provides a driver who works for someone else and their cargo. Professionals who drive trucks for work must have commercial insurance in order to drive their vehicles legally. Commercial insurance companies offer a variety of policies for different types of trucks, industries, and hauling. For example, a trucker who drives across state lines and transports non-hazardous goods will need different safety measures. Moreover, a driver of a box truck who delivers furniture will need a completely different one.
Q2. How does commercial truck insurance work?
Ans. Commercial truck insurance is made to protect truck drivers as well as their cargo, which are usually more expensive to insure than commercial cars and vans. Truck insurance protects both the truck and the drivers listed on the policy.
Q3. How much commercial truck coverage do I need?
Ans. The Federal Motor Carrier Safety Administration says that commercial trucks must have at least the minimum amount of insurance coverage. States, companies, industries, and even certain types of cargo may need higher minimums.
Q4. What are truck filings?
Ans. Commercial truck filings are required by federal regulators to show that motor carriers and some owner-operators have enough liability insurance to meet federal and state minimums. It’s usually best to buy insurance from a company that gives you paperwork and may even document on your behalf. Most transport companies and leased owner-operators don’t have to file. But all other truckers who drive for pay have to fill out a federal form. But each state has its own rules about how to file a business. So make sure to talk to your insurance provider about the rules in your state.