July 1, 2017
Semi Truck Insurance
Whether it’s a tanker, flatbed, car hauler or reefer, any semi truck has the potential to cause extensive damage to anything it may run into or over. So no matter what your reason is for owning and operating your vehicle, you will need special semi truck insurance before you can get started in the business. And to ensure the coverage you invest in actually suits your business, you might want to familiarize yourself with the kind of options you’ll be faced with while shopping.
What Kind of Semi Truck Insurance Do You Need?
For owner-operators, the cost of insurance policies for the first year is usually between $10,000 and $ 15,000. This is because most of them try as much as they can to protect their valuable investments. Depending on the company you choose to insure your vehicle with, the options you may choose from include:
- -Primary auto liability: This covers any damage/injuries suffered by a third party in the event of an accident. Federal law stipulates that all carriers carry liability coverage on each truck they operate, including leased units.
- -Physical damage: This is meant to cover physical damage on both the truck and the trailer. While it’s not mandated by law, the lien holder will usually require it if you’ve financed your vehicle. Premiums are based on the actual value of the equipment.
- -General liability: This is meant to cover the business for any property damage/personal injury that may occur, and which doesn’t involve a truck. Common examples would include slip-and-fall incidences at the premises, as well as any exposure you may get from the contracts you get involved in.
- -Cargo insurance: This covers freight that may get lost or damaged during transit. It should be noted that most insurers will specify different exclusions (such as maximum theft limitations on certain commodities, unattended truck, and a whole lot of others. One should thus read their policy carefully before committing themselves to ensure they actually get the protection they want.
Other common types of coverage include terminal coverage, non-trucking liability and trailer-interchange liability. Before you can start shopping for rates, you first need to determine the types of coverage you’ll need for your business. Also crucial is knowing how to purchase the right coverage at the lowest possible price.
Reducing The Cost of Semi-Truck Insurance
With commercial truck insurance, shopping around can be a little harder, mainly because most insurers choose to stay away from this area. Still, those that do generally prefer working with drivers who are less likely to cost them money. This is why truckers with clean driving records and safe vehicles find it easier to get discounts. In addition, taking on a bigger responsibility in the form of higher deductibles or lower limits could also help you reduce the costs. But be careful — a higher deductible means you may have to pay more in future.
As a trucker, insuring your rig is going to be one of your biggest expenses. That being said, the last thing you want is a cheap policy that hardly protects you from the numerous risks you will face in this business. So as you shop for semi truck insurance quotes, consider seeking help from reputable brokers, preferably those who specialize in the industry.