Motor carriers often shoulder the cargo and liability insurance mandated by the FMCSA, but owner-operators still have to purchase additional insurance to haul loads. This is because extensive insurance goes beyond liability coverage. While motor carriers have varying insurance needs, expect most to require bobtail, trailer interchange, and comprehensive and collision coverage.
Is it fair for motor carriers to require their leasing owner-operators to pay for additional insurance? The answer is yes. Mapping out a comprehensive policy protects owner-operators from several road risks that standard liability insurance does not cover.
For instance, basic cargo insurance might not compensate for specialty freight. As such, truckers hauling hazmat goods or products that require specialized equipment might need to purchase additional coverage. Take note that motor carriers are only required to meet the minimum coverages.
Moreover, liability and cargo insurance do not cover non-owned trailers. If your leased vehicle sustains damages during a road accident, you might not be able to make a claim unless you have a non-owned trailer or trailer interchange insurance coverage.
Consult your motor carrier if you still find the different insurance policies confusing. Remember that, while you might not need to pay for owner-operator insurance, your motor carrier will likely ask you to purchase additional coverage to protect their leased vehicles. Expect the rates to go up if you’re hauling their trailer as well.
Do you find yourself lost between the types of insurance that long-haul truckers typically get? Check out Assured Standard’s article covering trucking insurance for long-haul owner-operators to learn more.
Ora Price is a licensed insurance producer. Since she majored in Finance at the University of San Diego, she knows how to deal with both clients and insurance providers alike.