If you own a business that requires transportation, you have probably already faced the dilemmas that commercial truck insurance poses. With a myriad of options available, it can sometimes be difficult to determine what combination of coverage is needed for your business. Furthermore, regulations for businesses vary from state to state. To make sure you have the coverage you need, it’s important to do your research and ask questions. Paying for coverage can be one of the biggest expenses a business faces.
The most basic type of commercial truck insurance is coverage for physical damage. These plans help ensure your vehicles, including the trailer, are protected in case of an accident. The price of this coverage depends on the value of your equipment. Depending on the agency, this could be anywhere from 5-10% of the value of your vehicle. In most areas, the law does not require purchasing this coverage. But, if you have financed your vehicle, the lienholder may require you to have it. In general, you will want to purchase coverage that will cover the accurate market value. This is because if the vehicle has an accident, the company will only cover for the value of the vehicle at the time of the accident.
Another essential type of insurance is primary auto liability. Federal law requires this kind of insurance. In order to drive any vehicles in the United States, you must purchase this kind of insurance. Even if you lease from a larger company, you must still invest in this kind of insurance. This insurance protects your company in case another individual is injured by a collision that involves one of your trucks.
Commercial truck insurance can become tricky when there are numerous owners for one vehicle, or when someone other than the truck driver owns the trailer. This can make it confusing as to who is liable in case of an accident. It is important to communicate clearly with any company you may lease trucks from or the companies you may be transporting goods for to determine what kind of insurance they have. Once you are aware of the policies they have, you can determine which policies and coverage you will need.
Cargo and warehouse coverage protect the freight that is in transit with your vehicle. There are a lot of very specific regulations that come along with this type of coverage. You will want to take a detailed look at these policies to determine what your needs are. Commercial truck insurance can be difficult to sort out, but if you do great research and ask lots of questions, you are sure to get a great deal.