Every working day, hundreds of commercial trucks haul goods across the country. These trucks are necessary for many industries to see far reduced economic activity, and many Americans would find it very difficult to earn a living. Even so, truck accidents can lead to destruction on an industrial scale in terms of dollars and people’s lives. To help ensure employee safety and vehicle security in this dangerous undertaking, commercial truck insurance is available at affordable rates for those who work with these vehicles every day.
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What Does Insuring a Commercial Truck Entail?
Commercial trucks usually fall into two categories: tractors, which tow a trailer or other equipment and are driven by a single person, and straight trucks, which may be multi-trailer vehicles driven by several people. They are often involved in accidents that result in serious injury or even death to their drivers or passengers. To help protect yourself from the expenses incurred by these accidents, you must choose the right insurance for your business and situation.
You should consider whether a commercial truck policy is warranted for your operation. Smaller vehicles will often be covered under an owner’s policy. However, some types of commercial trucks need the extra protection that comes with a company or professional truck policy, in which case you may see significant savings on coverage costs.
If the truck you drive is worth more than $100,000, it will likely fall under the criteria to have its policy. This will make it eligible for most of the policies described below.
The type of coverage for commercial truck policies varies according to both the type of vehicle and the amount of coverage needed. The most popular types of policies are:
To learn more about businesses that have chosen this route, check out our Guide to Commercial Truck Insurance.
Tractor-Trailer (T/T) Policies
These policies offer a comprehensive set of benefits while still providing affordable rates. They cover most areas that full coverage policies do, including physical damage and replacement parts, as well as liability and medical expenses.
Company policies often include higher limits for liability protection and coverage for property damage to another company’s property or equipment. They may also include higher limits of medical payment coverage.
In addition, companies can choose from a variety of other optional features for their policies, including discounts for operations that comply with government safety regulations, the option to make payments over several years frame, the option to have a portion of the premium paid by an insurance company at the time of policy issuance, and so on.
What Type of Truck is Covered?
Some companies may choose to have a single truck covered under a company policy, depending on the cost and level of coverage needed. For others, a team of trucks may all be covered under one policy. This is often the case when businesses are smaller and have only one or two types of vehicles. In these cases, however, the cost of coverage can increase significantly over time as those vehicles age.
How Is the Coverage Calculated?
In general, most companies will purchase a flat rate for their coverage. This is similar to how most homeowners buy coverage for their homes and personal property. Rates are usually based on the cost of insuring a standard truck. All calculations will be based on the vehicle’s value at the time of application for insurance and any modifications made. These modifications could reduce or increase coverage rates, depending on if they increase or decrease risk.
Individual and small business owners often find more affordable rates with a higher deductible. This can eliminate the need for large claims in small intervals, helping keep policy costs down.
What are the Commercial Truck Insurance Requirements?
If you have met the criteria for a commercial truck policy, you will need to meet several requirements set by your state. For example, in most states, you must maintain a valid commercial driver’s license and submit proof of insurance coverage. If your state is one of the few that doesn’t require a CDL, consider getting one. It can be helpful in many ways, including increasing safety and lowering costs associated with crashes.
You will also have to read and sign a statement of understanding, which is a document that explains the policy’s benefits, coverages, exclusions, limitations, and conditions.
Some states require you to submit proof of financial responsibility before issuing a commercial truck policy. This means you must have enough money to pay for your business’s damages. It is common for individuals and small businesses to struggle financially at some point in their lives and be denied insurance because they cannot provide proof of adequate funds.
You can use our quick and easy online form to help you find the appropriate policy for your commercial truck. This will allow you to enter the details of your vehicle, including its value, so we can provide you with instant pricing for policies that align with your business. Of course, we will also work with your to customize coverage to fit your company’s needs and requirements.
Conclusion
Commercial truck insurance is necessary for many businesses that operate vehicles with a certain value or that carry large loads. If you are considering buying coverage for your business, it is important to understand what type of policy and coverage is best for your situation.
As you can see, there are many options for commercial truck coverage. How you protect your business can be as simple as one, two, or three policies. However, the best and most affordable solution for your needs is tailored to fit your specific situation.
