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.
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.
The coverage for private insurance involves three main components.
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:
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:
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.
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.
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:
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.
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.
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.
Important statistics on motor carrier safety for better decision-making while drivers are on the road.
Insurance legal process and application requirements for motor carriers, freight forwarders, and broker authorities.
Looking for private carrier truck insurance? Let Assured Standard help you with that today!
Arthur Williamson graduated with a degree in Business and Management at the University of California, Berkeley. He is knowledgeable about what small and big businesses require to keep operations moving.