Commercial truck insurance is an essential coverage for small business or a owner-operator providing trucking services. Targeting primarily toward larger companies, insurance itself can be a costly thing for a firm that operates only one or two trucks. The options offered differ according to the type of truck, the goods conveyed, the risks incurred and the number of years of experience the driver has. The insurance package you get for your business is likely to have several different kinds of coverage, and understanding how these function will assist you identify the options you require.
The Basic Coverage
Basic coverage is made up of collision coverage and comprehensive insurance. The collision damage insurance covers the costs of the other car from an accident that you were at fault, as well as the damage to your cars. Comprehensive insurance functions similarly to regular motor car insurance, which covers the cost of repairs to your car, up to a maximum value, that is covered by something other than a collision.
The Specialized Coverage
Companies that offer commercial trucking insurance operate a variety of specialized options you can choose from. You need coverage for every possible scenario that your truck could be involved, without adding the price to an unaffordable amount. Apart from basic coverage, the trucker that transports cargo on behalf of customers requires commercial auto liability, which offers coverage for bodily injuries and damage to the property of others. Cargo insurance covers the loss or damage of the cargo, and the cost is dependent on the type and value of the cargo.
The non-Trucking Coverage
Types of coverage that are not directly related to the transportation of cargo include the bobtail insurance, non-trucking liability coverage, occupational accident coverage and coverage for personal properties in the truck. Bobtail insurance comes to effect after the truck’s load is delivered and the car is traveling without cargo or a trailer, or if the owner uses the truck for some personal use. This is about the same thing with non-trucking liability coverage, that applies when the car is not transporting cargo, whether or not it is pulling a trailer. Occupational accident insurance covers the owner operator for accidental death or dismemberment that happens in the course of truck driving.
The premiums available on the insurance package you choose are payable monthly in advance. Payments can be added with the truck payments if you purchase the insurance via the dealer, but this might get to be more expensive than purchasing directly from an insurance company. The premiums get payable for the duration of the policy’s life. You are at liberty to cancel at any time and the cancellation will not impact your credit score, but you will be responsible for the payment of all premiums due before the date on which cancellation is affected. Premiums could be higher if you or your driver has a bad driving record.
Your premium is partly dependent on the deductible you choose or you qualify for. Drivers that have accidents on record have a higher deductible, because of the risk to the insurance company. Deductibles differ from $500 to $2,000, and are usually paid first in the event of a claim. For example, if your deductible is to be $1,000 and repairs $1,500, you pay the deductible to the repair shop first and the insurer will then pay the remaining $500. If you do not want to face a high deductible, take a low deductible and higher premium. For companies that have experienced, accident-free drivers, a higher deductible and lower monthly premium is usually a safe option.