Private Carriers Truck Insurance

Private Carriers Truck Insurance
by Arthur Williamson

The trucking industry plays a strong role in the economy of the United States. In 2019 alone, the entirety of the country's trucks were able to move 18.4 billion tons of freight, according to the American Trucking Association.

Imagine how many millions of trucks have to be in operation just to handle those logistics needs. Whether these vehicles are classified as a private carrier or a common carrier, one thing is for sure: All of these trucks must be protected by truck insurance.

What Is A Private Carrier?

A private carrier is the term used for a company that uses their own vehicles to transport the goods they produce. This means that they only work with their own materials, and they are not for hire to transport materials for other companies.

Most of the time, private carrier companies use semi-trailer trucks, but those with larger operations can also work with aircraft.

What Truck Insurance Covers

The coverage for private insurance involves three main components.

Liability Insurance

Once a private carrier gets involved in an accident springing from their own actions, they will be covered by liability insurance for all injuries incurred. The insurance coverages are split into two parts:

  1. Bodily Injury Coverage - This insurance protects against an accident that results in an injury or death of another person. Bodily injury coverage includes medical and hospital expenses, lost wages, therapy and rehabilitation, and funeral expenses for worst scenarios.
  2. Property Damage Liability Insurance - If a third party's property got damaged in an accident through the carrier's truck, this type of insurance covers the repair and replacement charges. Should the owner operator get sued for the damages, the legal fees will also be covered.

Physical Damage Coverage

This component involves two basic insurance coverage options that will provide additional protection for the truck. For this part, the carrier can decide on the amount the company is willing to pay in the case of a claim. The insurance coverage include two things:

  1. Collision Insurance Coverage - This type of coverage is provided if the truck gets into a collision with another vehicle. The insurance will handle the repairs or replacement for the damaged vehicle.
  2. Comprehensive Coverage - This insurance coverages pay for a vehicle damaged in an accident that does not involved getting in a collision with another vehicle.

Medical Payments Insurance

The final component's scope extends to the medical bills the truck driver and other passengers in your truck have to pay as a result of the accident. However, medical payments insurance is not available throughout the country and is one of the types of insurance that varies by state.

Private Truck Insurance Filings

If the carrier's trucks will be passing through state lines, the companies must acquire federal or state truck insurance filings. These things certify that the private carrier is operating legitimately and that the truck used has protection through the required insurance.

How Private Carrier Insurance Differs From Commercial Truck Insurance

Commercial truck insurance involves different auto insurance policies that benefit trucking companies, companies that work with trucks, and independent truck drivers. Usually, this involves larger vehicles that transport goods, agricultural products and equipment, and construction.

The people who benefit from commercial truck insurance are:

  1. Motor carriers - A motor carrier is a company that you hire for their fleet of trucks you can use for your business.
  2. Owner Operators - These are people who own some trucks that they can use for themselves or lease for the use of others.
  3. Private carrier - These are individuals who use their own vehicles to transport goods.

The main difference of commercial truck insurance to private carrier insurance is that the former has a larger scope compared to the latter. Private carrier insurance is focused on a more specific type of vehicle handling compared to a more general approach of a commercial truck insurance.

Frequently Asked Questions

How much does truck insurance for private carriers cost on average?

There are many factors that can influence the average monthly cost of private carrier insurance. The numbers can amount to $700 to $1,000, depending on the extent of the coverage.

Is truck insurance for private carriers necessary?

Being on the road is something unpredictable. Even the most careful of drivers can encounter an accident, because of other vehicles surrounding them, or perhaps, through natural causes. As prevention is better than cure in the world of medicine, insurance can provide protection to vehicles while they are out on the road.

If you value your life and the lives of others, truck insurance is a very essential investment to maintain for your vehicles.

Additional Resources

Online Safety Data Resources | FMCSA (dot.gov)

Important statistics on motor carrier safety for better decision-making while drivers are on the road.

Insurance Filing Requirements | FMCSA (dot.gov)

Insurance legal process and application requirements for motor carriers, freight forwarders, and broker authorities.

Truck Insurance for Private Motor Carriers

Looking for private carrier truck insurance? Let Assured Standard help you with that 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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