Commercial Truck Insurance Reduce Accidents and Costs in 2022

commercial trucks

Commercial truck insurance is vital for for-hire truckers and those in the business whose central operations involve owning and operating trucks. Insuring your trucks will allow you to reduce any costs related to unwanted events. If you are interested to know the details of this type of insurance or are thinking of setting up a business that involves owning trucks, then you’ve come to the right place. 

We will discuss what commercial truck insurance is, its coverage, the types of trucks it covers, how much it costs, and discounts that may be availed.

What is Commercial Truck Insurance?

Commercial truck insurance, also known as trucking insurance, is a business insurance that falls under a group of commercial vehicle insurance designed to protect and cover business trucking needs. 

Primary liability insurance and general liability insurance are requirements in order to operate a truck. The former covers injuries, property damage and freight damage caused by your truck while the latter will pay for damages done to your property or even other’s property during the attendance of your truck; this can even protect you from legal matters against your business!

Trucking Insurance Coverage

Commercial truck insurance comes with a wide range of coverage selections, each to fit specific needs to protect businesses from financial loss. Here are the most common types of coverage which trucking insurance companies offer:

Physical Damage Insurance Coverage

Any accident-related damage incurred on your vehicle, instances of theft, and vandalism are covered by physical damage coverage.

Commercial Truck Liability Insurance

Costs related to the damage caused by your commercial truck will be covered by this insurance policy. Property damage, medical expenses for injured persons, and legal finances are also covered by this form of insurance.

Uninsured / Underinsurance Motorists Coverage

If you or any of your employees are  involved in an accident where the operator is at fault, but the driver falls short of coverage to compensate for injuries and property damage, this insurance covers for these costs.

Truck Cargo Coverage

This type of insurance covers any damages and cases of theft to the cargo your truck is carrying.

While you will surely come across more specific coverage policies that protect your assets from unwanted circumstances, these are the most common types of coverage you will encounter when forming the coverage structure of your insurance policy. 

What Types of Trucks are Covered?

You might encounter specialized truck insurances such as semi-truck insurance and many other truck insurances that sound specific. These are commercial truck insurances that cater to particular truck categories, but these all fall under the umbrella of commercial truck insurance. 

Due to their unique roles, the insurance amount for each type of commercial truck will vary. The hauled load and mileage per year will also be factored in when building your policy coverage. 

Here is a list of trucks covered by Commercial Truck insurance:

  • • Flatbed trucks
  • • Dump trucks
  • • Tow trucks
  • • Garbage trucks
  • • Box trucks
  • • Vehicle haulers
  • • Semi-trucks
  • • Tankers

What is NOT Covered by Commercial Truck Insurance?

A general trucking insurance might be comprehensive, but it does not protect you from everything. There are instances when your coverage will not be able to cater to you.

A few scenarios and cases which may be excluded from coverage are:

Excluded Trucks

Not every truck will qualify for coverage. And generally, only those under an insurance company’s list of covered trucks are allowed. A couple of the common vehicles not covered under Commercial Truck insurance are: 

  • • Ice cream trucks
  • • Limousines
  • • Hearses
  • • Buses
  • • Cement trucks

Driver Injuries

If you do not have the uninsured motorist coverage policy and your driver is the cause of the accident, then he/she will not be covered by your insurance. The protection of your workers in such instances would be from their compensation insurance plan. Basic trucking insurance is about safeguarding other people from the unwanted events caused by your truck.

Damage to Your Trucks

Without a physical damage coverage policy, the damages sustained by your truck will not be insured. General liability insurance only covers the cost of damage to others.

Post-Accident Income Loss

Your insurance will not cover any loss of income despite the relation of financial losses and setbacks caused by an accident involving your truck. This field of insurance is what business interruption insurance covers.

If you are looking for a foolproof way of insuring your assets and protecting your business, you will need to personalize your truck insurance by combing through various policies and looking into other forms of insurance.

How much is commercial truck insurance?

Expect your primary liability coverage to cost around $795 to $2000, depending on several factors. 

Prices may also vary depending on the transported goods. That is the basic requirement coverage by law. Average monthly costs for general freight such as appliances and furniture may be around $795, while specialty trucks such as garbage or tankers may have an average monthly cost around $930. As you build your policy structure, your insurance cost will increase.

There are seven primary rating factors that can affect your insurance cost. These factors are used by insurance companies to quote your insurance. These seven are:

  • • USDOT Authority
  • • Contractual Requirements
  • • Type of Cargo
  • • Operating Radius
  • • Truck Type
  • • Driving History
  • • Location

Saving tips and discounts

Adjust your policy structure wisely. More coverage means more protection which entails higher costs. Less coverage will bring down your costs, but that means you will compromise your protection. 

You can increase your deductibles to decrease your premium but that means you will have less protection and you will need to allocate more money to pay out of pocket in the event your insurance will not be able to cover for the costs.

Maintaining a good driving record will reflect well and give a good impression on insurance companies. This will likely be a factor that will help you cut costs. 

Other insurance companies offer incentives for businesses that have been operating for over three years. You can also avail of pain-in-full discounts which may vary depending on the insurance company.

Assure Yourself - Get Properly Insured

Protecting your business assets must be of utmost priority and insurance is the key. Your truck or fleet of trucks is at constant potential risk, considering the fact that they are on the road for hours on end. 

A single catastrophe involving your trucks could spell financial disaster if you are not insured. Safeguard your business from any unwanted events that may stun your finances, by availing of a commercial truck insurance from your insurance company.

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Assured Standard will protect your business with the right insurance, depending on your needs. Now more than ever, it’s crucial to have the right general liability insurance experts on your side. Protecting the future of your business starts today.
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