According to government statistics, in 2015 alone, there were over 400,000 accidents involving commercial vehicles in the United States.
More than half of these accidents were caused by the driver’s mistake or carelessness, making it more challenging to get insurance for truckers, primarily commercial truckers.
Because business insurance for truckers is mandated by law, the situation is particularly difficult right now. Cargo loss will not put drivers or owners at risk of financial ruin because of this insurance. If an accident occurs or you need to begin an overhaul, you’ll be covered for responsibility and even for the cost of a rental vehicle.
Read on to learn all about commercial insurance for truckers and the key six factors that will help you find the right policy for your needs.
Insurance for Truckers 101: How It All Works
Commercial truck insurance provides bodily injury and property damage liability coverage in the event that a truck driver is determined to be at fault in a collision.
There’s comprehensive collision protection and cargo coverage. In addition, you’ll find personal injury protection (PIP), and uninsured/underinsured driver protection, commercial truck insurance policies may provide additional benefits. When an accident occurs, the motorist will notify the insurance company that pays the covered benefits to file a claim.
The Average Cost of Commercial Truck Insurance
Commercial truck insurance premiums, like other insurance products, depending on a variety of variables. There are several factors that go into determining a driver’s insurance premiums, including his or her age and driving record.
Generally speaking, the average cost of commercial vehicle insurance in 2020 was $640 to $982 per month.
Identify the Commercial Truck Coverage You Need
Federal Motor Carrier Safety Administration regulations state that the amount of insurance commercial truckers must carry varies based on the vehicle and cargo they transport.
The greater the risk and the greater the weight of the vehicle, the more coverage the driver will need. The current minimum limits for commercial vehicle insurance are as follows:
- It’s $300,000 for non-hazardous items transported in vehicles weighing less than 10,001 pounds
- Oil delivered by private or for-hire carriers costs more than $1 million
- Transporting non-hazardous goods costs about $750,000
- For-hire/private transportation of hazardous items and explosives totaling $5 million
- Cargo insurance for home items, $5,000 per vehicle/$10,000 per incident
These are the federal minimums. Other states, businesses, or when moving specialized goods may demand higher minimums. Now you’re familiar with the foundation of what commercial trucker insurance is all about.
It’s time to explore the factors that will help you pick the best commercial insurance for truckers.
- Compare Vehicle Insurance Rates
Everyone you speak to about truck insurance is going to urge you to believe that he’s your best bet. Before choosing a commercial trucking insurance broker, you must speak with many different companies. This will help ensure that you are obtaining the greatest coverage at the best price.
So that you may immediately connect with three different truck insurance brokers, we can bring them to you. You’ll be able to see their policies in a more objective light since they’ll be competing for your business. Or, you can just check out this truckers insurance for the best rates and policies all around.
- Determine Which Insurance Policies You Actually Need
In your insurance package, your trucker insurance broker will provide a variety of coverages. Liability, cargo, and collision are among the most important coverages in a decent truck insurance policy. As a result, a number of brokers will provide you with less-than-necessary safeguards.
It’s essential to recognize the difference between the meat and the fat. Assess each candidate to determine which one has the necessary skills and experience to be of value to your company. This knowledge may save you thousands in the long run.
- Always Ask About Discounts
Low-risk customers are sought after by truck insurance firms. The likelihood of a large claim may be influenced by a number of factors. Premiums are influenced by several criteria, such as a person’s credit score, number of OOS infractions, and amount of CDL experience.
Paying the whole amount in advance also qualifies you for further automatic reductions. Ask your trucker insurance broker about any additional reductions he may be able to provide you with.
- Gather Information About the Firm
Verify the reputation of any insurance provider before enrolling. Are you are looking for information on a business insurance company’s trustworthiness from real-life truckers? You should check the state’s insurance agency website includes customer surveys on its site.
You may also ask other truckers about their experiences with insurance companies on trucker forums. Check their ratings from S&P or AM Best to see how they’ve been rated as well.
- Carefully Review Your Policy
Obviously, an insurance policy is a legally binding arrangement. Therefore, your signature can’t be withdrawn from the contract.
Simply reading the contract will help you prevent future issues and disputes of any kind. Contact your insurance broker for clarification if you have any queries regarding your policy. And, if you still have issues, contact your state insurance department.
For your safety, they’ve got your backs.
- Shop Companies Annually
As a professional truck insurance broker, he or she will shop your coverage every year to see if they can lower your premiums.
It’s time to look for a new insurance broker if your rates are rising each year. Up to $1,800 a year in savings has been realized by truckers who promise to switch insurance firms every year. This can always save you a lot of money in a short time.
Understanding Commercial Insurance for Truckers
Dealing with automotive insurance is a hassle on the best of days, but trying to tackle insurance for truckers can even be more overwhelming. Hopefully, our guide has shed some light on the nuances of commercial insurance for truckers.
And, if you’re interested in learning more, you should check out our insurance section for all the additional tips and explainers you could possibly need.