Bobtail Insurance Coverage

Bobtail insurance coverage can be very useful if you are ever involved in and responsible for an accident while driving a truck under someone else’s trucking liability without a trailer. Here’s what bobtail insurance, also known as “deadhead insurance” covers:

Truck Risks

For example, if you are driving your truck without the trailer attached (regardless of dispatch), and you get into an accident, bobtail insurance covers you and your semi-truck. Also, bobtail insurance covers you while driving your truck without its cargo trailer to and from the terminal, and while traveling between loads and the trailer isn’t attached at that point. 

Generally, bobtail insurance provides a much broader range of coverage than other liability insurance. For this reason, it can also be more expensive. Additionally, the broad coverage can also limit the exposure of the carrier. Thus, bobtail insurance covers the following:

• Damages to properties of third parties
• Medical expenses in case of injuries to third parties
• Defense costs in case of a lawsuit

Bobtail insurance essentially covers any damages that may occur as the result of an accident. At the same time, truckers use their trucks for recreational purposes, off the job site, at a servicing station or any other place or situation where they aren’t under the authority of the trucking company.

Often, bobtail insurance is confused with non-trucking liability (NTL). However, though both types of insurance refer to similar coverage, there are important differences between the two.

Non-trucking liability or NTL refers to insurance coverage provided in case of any accidents that occur while using your commercial truck for personal purposes. It pays for any medical expenses or damages that may occur to third parties due to the accident.

Some of the differences between the two are:

• NTL covers independent drivers when they use their vehicle outside the range of their lease agreement with the motor carrier.
• NTL only applies when drivers are driving their trucks without trailers for personal reasons and on personal time.
• NTL does not cover drivers while they are under dispatch.
• NTL provides more narrow coverage than bobtail insurance and for this reason, is less expensive than bobtail insurance.

Thus, NTL doesn’t provide any coverage during business hours or when under dispatch, such as driving to and from the terminal, traveling to service the vehicle, or even stopping to refuel, or the use of the vehicle for any revenue-generating activities, all of which are considered business hours. Instead, these activities are generally insured by the trucking company’s primary trucking liability insurance.

Considering the fact that bobtail insurance covers you and the possible damage, it’s a good option to have this policy. However, trucking companies may also require independent truck drivers to already have bobtail insurance, as “bobtailing” is highly common, even under dispatch. Bobtail insurance covers truckers in case of accidents under dispatch, which reduces the liability of the trucking company as the insurance policy will cover the expenses instead.

It’s important to understand that bobtail insurance alone isn’t enough to completely insure your truck. Bobtail insurance usually requires other truck insurance policies that are complementary to it, such as physical damage coverage, to fully protect your vehicle against damage or in any situation. Therefore, commercial truck insurance and bobtail insurance work hand-in-hand and are equally important.

As we said, bobtail insurance costs more than other truck insurance policies due to the wider coverage it provides. The most popularly requested coverage for bobtail policies is $1 million, though higher limits are available. The cost of coverage will also depend on the amount of coverage you require.

For example, if you plan to purchase a $1 million coverage policy, the monthly amount that you have to pay could work out to an amount ranging from $35 to $60. Also, remember that different insurance companies may quote different prices for their insurance policies, so make sure you triple-check and read the fine print! 

What many people fail to understand is that there are ways to save on insurance policies as well! Many insurance companies offer discounts and deals on insurance policies, such as “bundling” (buying more than one or two different policies from the same company), discounts on the premium for meeting certain criteria, and so on.

You can save on bobtail insurance with the following tips as well:

• Finding an insurance company that offers you low rates (such as 2.5% of your vehicle’s stated amount).
• Adjusting your deductibles is a highly efficient way to save on insurance premiums. Adjusting your deductible to as low as $100 or as high as $3,000 can really help to lower the costs of your insurance premium.