With the looming driver shortage in the trucking market, owners may be looking for ways to stay competitive by reducing insurance costs. Often, people may get confused about the difference between non-trucking liability insurance and bobtail insurance. They are often used interchangeably, but they have key differences. Without understanding what they’re used for, you may put your business at risk by purchasing the wrong type of coverage.
Bobtail insurance is a more specific type of insurance and only provides trucking coverage if there is no trailer attached, whether you are using the truck for business or non-business-related purposes. In contrast, non-trucking liability insurance can cover the truck as it pulls an empty trailer when it is being used for personal reasons.
Bobtail insurance is useful for business owners that don’t make use of an attached trailer or container in addition to their truck. For instance, if you are finished carrying a load and have an accident on the way to another job, your truck is covered as long as you don’t have an attached trailer.
Non-trucking liability insurance covers the truck even if it is carrying a trailer, as long as it is being used for non-business purposes. This can come in handy for truckers that use their vehicles who help friends move houses or for other personal reasons. Coverage usually includes medical bills, the cost of property damage, and truck repairs when off the job.
Since they have different amounts of coverage, non-trucking liability insurance usually costs more than bobtail insurance. Ideally, a business should invest in both types of insurance for better peace of mind, especially if their trucks are being used for personal use.
If you want to learn more, check out Assured Standard’s guide to bobtail insurance today.