Trucking insurance is an inseparable element from truck and transportation industry that uses trucks for commercial purposes. For business owners, it has become one of the biggest fixed expenses that have to be paid regularly depending on the written policy.
One thing that business owners have to know to purchase this insurance is to understand the available types of coverage. It will be the first step to ensure that they get the right coverage in sufficient amount. The business is protected and what they get is what they pay.
Types of Coverage for Trucking Industry and Transportation
Accident is what the truck driver faces on the streets. It happens anytime without knowing where and when. Bodily injury and property damage are two possible things that we have to pay.
The loads may also be damaged and it will be a great loss for our business. Seeing those facts which types of coverage that fit to those conditions?
Physical damage might be the most required coverage for our trucks or trailers. This insurance premium is based on the value of the equipment that is typically is derived from the percentage of that equipment.
Well, the law of the state does not require us to carry this trucking insurance coverage. However, if your trucks are relatively new or financed, you possibly need it.
Get the real value and insure it not lower or higher than the value since the insurance provider is going to pay the market value based on the time when you have loss or accident.
The coverage that each business owner with commercial trucks must carry is primary auto liability. It applies for general trucks, both new and leased trucks or trucks that have been several years old. This trucking insurance coverage covers the bodily injury of the third driver involved in the accident.
To protect your business against an accident that does not involve another truck but causes property damage and bodily injury, you will need general liability. Make sure you understand the inclusions and exclusions if you decide to carry this coverage.
If your commercial trucks often travel but not under dispatch, you may need to add non-trucking liability. Some people call this as bobtail liability.
There are some other types of coverage that you may need to your business. Of course, the more trucking insurance coverage you add, your insurance cost automatically increases. So, it is important to understand the affecting factors and try your best to control them.
What Affect Insurance Costs
The number of coverage you add primarily affects your insurance cost. However, there are some other factors, as well.
It is all about your truck drivers. Their driving records and age of the drivers highly affect. To get reduced cost, you have to carefully select your drivers by looking into their driving experience and backgrounds. Of course, drivers under 21 years old should be avoided.
How old are your trucks? To reduce trucking insurance cost, you have to wisely choose trucks for your business. However, even if you already get ones, the hauled commodities will affect your insurance cost.
The radius of the transport and vehicle location will also affect. Furthermore, how long you have been running your business and your loss insurance history are included into the affecting factors.
As business owners, you have an absolute control upon your business including the way to employ your truck drivers. Ensure that the hired drivers have good driving record and do not drink alcohol while driving.
Even if you already know those types of coverage and learn to control the affecting factor, you may be in need of assistance when it comes to purchasing this insurance. Insurance brokers will help you to get your right trucking insurance.