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How Much Liability Insurance Do I Need For Commercial Truck Repair?

How Much Liability Insurance Do I Need For Commercial Truck Repair?

The U.S. federal law requires all commercial trucks weighing more than 10,000 pounds to carry truck liability insurance. Trucks hauling normal cargo, hazardous compounds, and tanks exceeding 3,500 gallons need 750K/1M/5M or $750,000, $1,000,000, and $5,000,000 worth of liability coverage, respectively. 

However, truckers facing significant logistical risks might need more. To ensure continuity, you should also have enough insurance to cover repairs if your trucks break down. The costs vary depending on the damage, but most issues would set you back by $10,000 to $20,000. This amount should cover the labor and replacement parts needed.

Do your drivers have enough protection? Assured Standard emphasizes that protecting workers takes precedence over insuring your vehicles. Check out our guide on bodily insurance policies for commercial truckers.

What Causes Commercial Trucks to Break Down?

Frequently check your commercial trucks for the following issues:

1. Alternator Failure

If you’re having trouble starting up your truck, then your primary suspect would be alternator failure. A new alternator would only cost around $500 to $1,000. However, if multiple units in your fleet act up, you might end up with a five-digit bill.

2. Worn-Out Brakes

Never delay brake repair. Faulty, worn-out brakes not only compromise your truck and cargo but also endanger the lives of your drivers.

3. Exhaust Gas Recirculation Failure

This issue easily ranks among the most problematic truck issues as it calls for an engine overhaul. With air and fuel mixing, you would have to rebuild your engine.

Frequently Asked Questions:

What is the required minimum liability coverage for commercial trucks according to U.S. federal law?

U.S. federal law mandates that all commercial trucks weighing more than 10,000 pounds carry at least $750,000 to $5,000,000 worth of liability coverage, depending on the type of cargo.

Why might truckers need more liability coverage than the minimum required?

Truckers facing significant logistical risks or carrying high-value cargo may need more liability coverage to ensure business continuity.

What are some common issues that can cause commercial trucks to break down?

Alternator failure, worn-out brakes, and exhaust gas recirculation failure are some common issues that can cause commercial trucks to break down.

Why is it important not to delay brake repair?

Delaying brake repair can compromise the safety of the truck, the cargo, and the drivers.

What's the disadvantage of reducing policy limits to the bare minimum?

Reducing policy limits to the minimum may result in out-of-pocket expenses if repair costs exceed the coverage, which can be a financial burden.

Individual owner-operators often reduce their policy limits to the bare minimum so that they can get lower premiums. This strategy yields negligible results. Focus on using insurance to mitigate business risks instead of keeping your premiums down. Otherwise, you might end up paying out of pocket if your truck breaks down and the repairs exceed your coverage.
Shopping for the best trucking insurance deals? Assured Standard can help! Check out our extensive review of the best trucking insurance companies on the market today.

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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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