Keep Your Auto Haulers Safe with the Best Coverage
Keep Your Auto Haulers Safe with the Best Coverage
A car carrier is a large investment that can pay off well over time. Car carriers are expensive, and if damaged in an auto accident the repairs can really put a dent in your bottom line. When you own a car hauling business such as transport companies, car dealerships or repossession company to name a few, you need to purchase various types of insurance related to vehicle transport. And it’s not just your truck you have to worry about. If anything were to happen to any of the cars or truck you are hauling it would come out of your paycheck.
When vehicles are involved, there is a new element of risk introduced in business operations. To mitigate this risk for business owners, commercial vehicle insurance becomes an essential requirement.
Auto Hauler Insurance FAQ’s
Car Hauler Risks
Damaging new cars
Being that one of the most common hauled vehicles are new cars, they pose a big liability risk. Should there be any damage to a brand new car there is a huge differential between the cost to repair damage to a new vehicle versus the reduced amount it must be sold for after it is fixed. If the roof of a car is damaged during transport, the repair may cost only $6000, however, the car value may have gone own by $10,000. If this happens to several cars on a single haul, this can quickly add up to tens of thousands of dollars.
Brand new cars are a major target for thieves, who may attempt to steal entire vehicles or raid them for parts. This can make leaving vehicles unattended problematic and many insurance companies will not cover auto theft from a truck that has been left unattended, even for a short time period. You need to make sure that your policy is properly covered for theft. many insurance policies won’t cover theft if the vehicle was left unattended, make sure you have that covered.
Liability insurance – Liability insurance is required by law in most states and many states will not issue your truck permits and licenses without this basic level of protection. Liability insurance is there to pay for injuries and damages inflicted on other people when you are at fault in an auto accident. This coverage includes bodily Injury and property damages.
Comprehensive Physical Damage Protection – Comprehensive damage protection provides coverage for almost all conceivable hazard and perils your truck might encounter aside from collision and rollover events. Comprehensive protection covers you for theft for example, and pays for the cost of repairs if your truck is damaged in a storm. If vandals spray paint the side or slash the tires, comprehensive coverage pays for those repairs too.
Property Damage – This coverage will help pay the damages that happened to the other vehicle. The property damages portion of your liability coverage pays the repair bills and can pay for the replacement of property that is destroyed.
Cargo Coverage – The cargo that you transport on your car carrier is quite valuable. Protect it from loss with cargo insurance coverage.
Uninsured motorist – Uninsured or underinsured motorist coverage protects you from losses that are caused if you get into an accident where the other driver doesn’t have insurance or doesn’t have enough insurance. If the driver at fault does carry liability insurance but it is not enough to pay for all of the damages and injuries inflicted by the accident, your uninsured motorist policy will make up the differences.
Bodily Injury – Bodily injury coverage pays for physical injuries and harm that is inflicted as a result of an auto accident. For example if you were driving your car carrier and bumped into another car, injuring the people in the other vehicle your bodily injury coverage will pay the medical bills that arise for the people injured in the other vehicles. This includes standard medical bills such as hospital transport and emergency room care. It also includes physician’s bills, prescription medications and rehabilitative care as well as losses in wages if they have to take time off work for recovery.
Collision Damage Protection – This coverage is designed to take care of your truck if your car carrier turned too sharply into a truck stop and scraped the side of a building and gets damaged, or if it collided with another object. Collision damage protection will pay for the cost of the repairs.
Unattended Truck Coverage – Truck drivers are required by law to rest regularly when traveling long distances. Leaving the truck unattended opens it up to risk of damage or theft. Protect yourself from this risk with unattended truck coverage.
As with any other vehicle insurance, the cost will depend on a number of factors. Generally speaking, it’s somewhat expensive to insure these vehicles due to the added liability of multiple cars, heavier weight, and distance traveled. Costs can range from $800 to $1400 per month.
There are many factors that go into determining your insurance rate:
- The size and type of car hauler you have
- The nature of your business
- How many vehicles you may be hauling regularly
- The type of vehicles you will be hauling (Are they damaged? New? Used?)
- Whether you’re hauling locally or across state lines
- The location of your business
- The number of car haulers you’re insuring
Keep in mind that all of the commercial truck must have a liability insurance policy which covers mainly damages caused to other individuals by your driver or you and also injuries that may occur during the incident. Liabilities are a must pay in every single state, trucks which always cross the state line should ensure that they have met a federal mandate payment.
The liability insurance minimum payment solely depends on the trucks weight class and the materials being ferried. For instance, a class A truck, yes a semi truck with a weight of about 10,000 pound and ferrying hazardous goods should ensure that it makes a minimum liability insurance cover of $ 1 million as opposed to a truck below the 10,000 pound mark but it carries normal commodities should also pay a minimum insurance payment of $300,000.
Trucks ferrying explosive commodities should make a payment of $5 million in the liability coverage policy, regardless of their weight.Apart from the primary liability coverage that is required by the law.
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