If you or your business uses, owns, or manages commercial trucks, commercial truck insurance is essential for protecting the goods you transport and your company's financial future. You need to know a few things when purchasing commercial truck insurance.
1. There are a Few Types of Commercial Truck Insurance
You have a few different options when you purchase your insurance policy. The policies that you'll need to purchase depend on your operations, but most individuals need to buy:
- General liability coverage: Protects the driver from mistakes made when loading or unloading their cargo
- Primary liability coverage: Covers damage caused by a driver to other people
- Physical damage insurance: Pays to replace or repair trucking equipment if it's damaged in an accident or theft
- Non-trucking liability insurance: Pays for damages or injuries when a truck isn't currently dispatched by your company
- Motor truck cargo insurance: Protects and pays for your truck's cargo if it's damaged or stolen
- Trailer interchange insurance: Pays for a non-owned trailer used for your business
- Underinsured/uninsured motorist coverage: Pays for damage caused by other drivers who lack proper insurance
Discuss your company's operations and needs with your insurance agent to make sure that you're purchasing the proper coverage to adequately protect your business.
2. It's Important to Compare all of the Policy Details
When comparing policies from different providers, you'll likely focus on the cost of the insurance. However, the cost of an insurance policy is only part of the picture. It's important to look at the terms and details of the policy to confirm that it provides ample protection and coverage.
You need to make sure that a policy's deductible is within your budget; remember, you have to pay your deductible before your insurance kicks in. If you have a $2,000 deductible, you have to pay this amount before your insurance will cover the remaining losses.
Some companies charge a deductible for each insured component, while others charge a per-incident deductible. If your truck, trailer, and cargo are damaged, this means that if you have to pay a $2,000 deductible for each component, you'll have to pay the deductible three times, for a total of $6,000.
However, if you select a company with a per-incident deductible, you pay a deductible of $2,000 one time before your insurance kicks in.
3. It's Best to Choose a Company with Experience Providing Commercial Truck Insurance
Stick with a reputable company that has experience underwriting and handling commercial truck insurance policies. If you need to make a claim, this helps you receive compensation as quickly as possible.
For more information, contact a commercial truck insurance provider near you.