Commercial tractor-trailers face several hazards on the road. Issues like slippery surfaces, poor roadwork, and careless drivers increase the risks of accidents. Some trucking businesses never even recover from road accidents financially. Fortunately, truckers can mitigate post-crises liabilities by securing customizable, extensive tractor truck policies before operating.
Like tow truck insurance, tractor truck insurance covers first- and third-party damages stemming from car crashes, cargo theft, and vandalism. Understanding these coverages can safeguard your trucking business’ continuity strategy.
Although the U.S. trucking industry is currently at an all-time high, the increased number of motorists also comprises overall safety. 2021 statistics show an 18.4% increase in road accident fatality.
Of course, defensive driving prevents crashes. However, you can only resolve financial and legal liabilities with adequate insurance. Tractor truck insurance ensures that you have sufficient funds to cover various collision and non-collision damages.
Plus, your policy can cover first- or third-party property damages and bodily injuries. Without commercial truck insurance, you would have to pay post-accident repairs and settlement fees out of pocket.
Truck insurance costs differ from policy to policy. While insurers consider several factors when underwriting policies, they primarily focus on insurability. Truckers exposed to more road hazards pay higher rates. Alternatively, proving to insurers that you operate a secure trucking business with a low risk of getting into traffic accidents will minimize your premiums.
Insurance providers assess truckers on the following factors:
Contrary to what first-timers might assume, commercial truck insurance goes beyond car crashes and road accidents. Insurance encompasses a broad range of risks. As a trucker, exploring your coverage options ensures that you make informed decisions in customizing your tractor truck policies.
General liability protects your trucking business from various liability claims, including property damages and bodily injuries. Note that the FMCSA requires all truckers to carry general liability insurance. Trucks class 3 and above would need anywhere from $750,000 to $5,000,000 worth of coverage, depending on their cargo.
Non-trucking liability covers accidents that occur during non-commercial trips. Insurers define “non-commercial” differently, but it usually includes off-dispatch incidents like driving to and from the quarry and filling up on gas. NTL policies focus on the nature of the trip — not the attached load or cargo.
Trailer interchange covers damages on non-owned trailers. It protects you from third-party liability if the trailer hauled sustains damage from collision, fire, theft, or vandalism.
The rental reimbursement with downtime covers up to 30 days’ worth of rental costs while the insured vehicle is being repaired. Note that the sustained damages must come from a covered incident. Also, most motor carriers require lessees to carry this insurance before releasing leased tractors.
Motor truck cargo insurance covers property damages sustained while loading/unloading cargo, awaiting final distribution, or docking at terminals. This coverage suits truckers who haul high-value cargo regularly.
Do you still have some unanswered questions about insuring tractors? We can help! Check out some of the most commonly asked questions we get about tractor truck insurance.
$750,000 worth of tractor-trailer insurance typically costs $650 to $950. Your policy rates depend on your overall insurability, which insurers compute using your driving records, claims history, and business tenure.
It costs significantly more to insure commercial trucks than private sedans and SUVs. Truckers typically pay higher premiums because they spend long hours on the road, transport cargo, and need repairs more often.
Diesel trucks cost more to insure because they generally have higher market values than their gasoline counterparts. Remember: insurers always charge higher-priced vehicles at increased rates.
Well-maintained diesel trucks can run 1,000,000 to 1,500,000 miles without showing signs of engine failure.
Leased farm trucks cost $2,000 to $4,000 per annum to insure. Meanwhile, truckers with their own authorities might shell out $10,000 to $18,000 depending on their tenure.
Make sure to consult multiple insurers when shopping for tractor truck insurance. Remember that every trucker has varying insurance needs. Don’t solely focus on getting the lowest rates. Instead, work toward finding tractor truck policies that provide the liability coverage and financial protection you may need following unforeseen accidents.
Do you need to insure other commercial trucks apart from tractors? Assured Standard has you covered! Check out our resources page for in-depth guides about commercial truck insurance policies.
