How Much Trucking Coverage Should You Get?

How Much Trucking Coverage Should You Get

In today's labor market, the lack of drivers is limiting truck demand. The trucking industry is eagerly reducing costs, making it difficult to find proper insurance. The type of truck operated and the items carried are often the biggest factors in trucking coverage. 

To get a better gauge at what is lacking with the industry, we'll talk about what you need to consider to find out how much trucking coverage you should get for your business. 

What Does Commercial Truck Insurance Typically Cover?

Commercial truck insurance may cover a combination of liability, collision, and comprehensive protection. Unlike personal auto insurance, commercial truck insurance has higher coverage limits to account for the larger, more valuable vehicles as well as the goods they transport.

The types of coverage available to truckers differ depending on the insurance company. To figure out how much trucking coverage you should get, some examples of policies that you may need to understand are as follows:  

  • General and primary liability
  • Physical damage coverage
  • Mechanical breakdown insurance
  • Bobtail insurance
  • On-hook coverage
  • Property damage 

Furthermore, truckers who frequently travel over challenging terrain and transport valuable or hazardous cargo may require a larger budget than those who generally travel on easy routes since the risk of damage and liability is a lot higher for the former. It’s also crucial to ​​consider the difference between the price of insurance for employee and non-employee truck drivers.

Bodily Injury

If someone is injured as a result of your truck’s operations, this coverage compensates for medical bills and any potential lawsuit costs. In addition, this covers anyone who may slip and fall on your premises.

Damaged Property/Commodities

Generally, general liability insurance covers the cost of repairing or replacing any damage your truck causes to someone else's property. Plus, keep in mind that general liability insurance covers the costs and losses incurred when commodities are delivered to the incorrect address.

Driver Accidents At Delivery Locations

Numerous variables fall under this category as long as they involve the conduct of a driver while on someone else's property. This includes loading ports and truck stops, as well as errors in the driver's load delivery. If your driver causes damage to another site's property, your general liability insurance will cover the cost.

Libel, Slander, And False Marketing Claims

If you conduct advertising or represent your brand on the road, it's possible that you will erroneously make claims or promises and fail to deliver. Your trucking insurance will help you out in such a situation. General liability coverage protects you in any event of a libel, slander, or false advertising action.

Average Trucking Coverage For Commercial Use

Some liability coverages are mandatory. You need primary liability insurance to be allowed to drive a truck. If you own a trucking company, you should supplement your trucking insurance with general liability coverage. Primary insurance only covers damage to another vehicle or person in the event of an accident while general liability insurance will provide further protection. 

The majority of insurance professionals recommend that you purchase a commercial general liability insurance plan. The Federal Motor Carrier Safety Administration (FMCSA) requires a minimum liability limit of $750,000. Moreover, they may mandate certain trucking operations to provide proof of acceptable general liability coverage.

Why Is Commercial Trucking Insurance Expensive?

The cost of insurance for a truck versus a company car can differ by thousands of dollars. Trucks are significantly larger and weigh up to 20-30 times more than passenger vehicles, which means that in the event of a collision between a car and a truck, the car nearly always sustains more damage. 

To illustrate, the data from Munley Law shows that occupants of passenger vehicles accounted for 67% of fatal truck-related accidents in 2019. If accidents involving only two vehicles are excluded, passenger vehicle occupants account for 97% of vehicle occupant deaths. 

As a result, commercial truck insurance considers factors such as the location where the trucks typically operate, the weight of the trucks, and the types of cargo that are carried by the trucks—specifically whether or not the cargo is hazardous. 

Frequently Asked Questions

While figuring out how much trucking coverage you should get, you might have the following questions in mind:

Is there such a thing as cheap commercial truck insurance?

While truckers often do not consider insurance to be cheap, it is prudent to seek out the best value which combines competitive pricing, specialized coverages, and excellent service.

What is excluded from commercial truck insurance?

Truck insurance policies are about protecting other people so it doesn't include driver injuries, damage to your trucks, loss of cargo, and loss of income after an accident.

What are the requirements for commercial truck insurance?

To get commercial trucking coverage, you need a Commercial Driver’s Licence (CDL) if you are hauling more than 26,000 pounds of cargo, Motor Carrier Number (MCN) and Department Of Transportation (DOT) authority, and the specifics of your vehicles: make, model, year, and VIN numbers.

The cost of trucking coverage varies according to your requirements, and it's important to recognize that commercial trucking coverage is not inexpensive. Main liability coverage typically costs between $5,000 and $7,000 per year in premiums. 

To get the best value, consider getting comprehensive insurance. Check out the comprehensive commercial trucking insurance at Assured Standard for more information.

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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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