Choosing the right trucking insurance is one of the most important decisions you’ll make in your business. Whether it’s a liability, cargo, or other types of coverage, there are many factors to consider when picking a policy. We’ve broken down what you need to know about trucking insurance so that you can get started with choosing the best plan for your company.
Choosing The Right Trucking Insurance
What is trucking insurance and why do I need it?
Trucking insurance is an insurance policy designed specifically to cover fleet-related risks and liabilities. As a matter of fact, you are required by law to have trucking insurance in order to operate your truck business legally on public roadways. If you need it, look here for a tow truck insurance program that suits you. Companies that have multiple trucks or drivers operating their equipment are required to carry some type of protection plan no matter how large or small the company is.
Every state has different requirements when it comes to trucking insurance, so be sure to check with your state’s Department of Transportation (DOT) website for specific coverage information based on where you run your business.
What types of liability should I consider?
Trucking insurance usually offers several different types of liability coverage, including:
Bodily Injury and Property Damage Liability – This type of insurance covers damage to vehicles or property that your business is responsible for. It also covers physical injury that happens as a result of an accident involving one of your company’s trucks.
Legal/Court Expenses – If you are sued because someone got hurt in an accident, this coverage will pay to defend you against the lawsuit. You will have to pay any damages that go against you out-of-pocket though.
Uninsured and Underinsured Motorist Bodily Injury (aka UIM) – This is auto insurance for when someone else hurts one of your drivers. The coverages are similar to
Each state has minimum limits that companies must follow when choosing a liability policy.
Types of trucking insurance coverage you can get
Different types of trucking insurance plans offer different levels and types of coverage. With the help of your agent, you’ll be able to choose from any or all of these:
- Cargo Insurance – Cargo insurance covers goods on your trucks that are damaged or lost. It includes general liability coverage as well so if anything happens while your drivers are transporting items for clients, this policy will pay to cover it.
- Hitch Coverage – This type of trucking insurance is vital if anyone else uses one of your company’s vehicles when they’re not supposed to. If a business is using one of your trucks without permission and causes damage to other people’s property or someone gets hurt in an accident, then hitch protection covers those damages.
- Liability Insurance – A basic liability policy is a must-have for every trucking company to make sure that if anything happens on the road, your business will be protected.
- Physical Damage Coverage – If your trucks are involved in an accident (or you need to tow one that had engine trouble), physical damage coverage is required by law. This type of trucking insurance covers damaged equipment as well as repairs.
How to save money on your trucking insurance by shopping around
Just like any other type of insurance, it’s smart to call your agent and shop around when you’re searching for the best trucking insurance. Insurance rates are based on many different factors including age, location, past driving records, and more. By getting at least 3 quotes from separate companies, you’ll give yourself a better chance to find out where your business is getting the best deal. Keep in mind that each quote will likely have several different price options so be sure to choose a quote that has the coverage you need at a price you can afford – you might even find an option for flexible cover for truck insurance to help you spread your payments, which could help when it comes to budgeting.
Premiums do vary depending on which company provides your policy so make sure you ask questions about what types of discounts they offer as well as whether or not there are certain requirements based on the size of your fleet.
Why the right type of coverage will help protect your company’s assets
Every company wants to make sure it has the protection it needs should an accident occur while one of its trucks is on the road. Unfortunately, most companies aren’t aware of what types of trucking insurance coverages are necessary until they experience a loss. That’s why having the right type and amount of insurance is crucial to protecting your business. Make sure you:
- Have enough coverage – Liability limits for trucking companies generally start at $750,000 and go up depending on how many vehicles you have in operation. It’s a good idea to contact your agent or broker if you aren’t sure about how much liability insurance to get,
- Consider adding other types of insurance – Cargo Insurance, physical damage coverage, and hitch protection, for example
How to buy the right amount of coverage for your needs without breaking the bank
When you’re shopping for business insurance, the cost of coverage plays a major factor in what company, if any, you’ll go with.
Even though the minimums are set by law, the amount of liability insurance trucking companies need to have isn’t actually enough to fully protect your assets. If a claim is made against your company and it’s found to be at fault, then your finances are on the line – not just those of your trucking company but also yours as well. That’s why adequate limits are crucial to making sure no one has to suffer financially because they did nothing wrong.
There are many different ways to find the best trucking insurance coverage for your business. Your agent or broker should be able to help you get all of the coverages you need without hiking up the price too much – after all, they’re used to dealing with companies just like yours.
Choosing the right type of trucking insurance is crucial to your business. We’ve provided some basic information on each type so you can make an informed decision, but if you have specific questions or need help choosing a policy for your company, get in touch with our team of experts at Insurance Solutions Group today.
