Truck Insurance FAQs

Do I need Truck Insurance?

Certain types of truck driver insurance are required. For example, liability insurance is a legal requirement, and cargo and damage insurance may be necessary in different situations. Even if insurance were not a legal obligation, the cost of an accident may be much greater than the cost of carrying an insurance policy.

Is Truck Insurance expensive?

Truck insurance is not cheap, but it is cheaper than paying for an accident out of pocket. The expense of truck insurance is determined by the coverage of the policy, the driver’s record, the vehicle type, location, and age of the truck. A typical policy usually ranges between 2,000 and 10,000 dollars a year.

How does Truck Insurance work?

Truck insurance works in a way that is similar to other insurance. It can cover damage to the property of others, personal property, and cargo, depending on the policy. Professional truck insurance can be specialized to cover the needs of an individual or organization. For example, worker’s compensation or advertising claims are also covered by truck insurance policies. The insurance company will pay the amount covered by the policy after files are claimed.

How do I qualify for Truck Insurance?

It is not too difficult to qualify for truck insurance. Insurance companies need proof that the driver has the appropriate licenses, along with a good driving record. The make, model, and age of the vehicle also determine whether or not someone qualifies for insurance, as well as the cargo being transported and the location. These factors also determine the cost of coverage.

How do I determine how much Truck Insurance I need?

Each individual should purchase truck insurance to meet his or her needs. Owner-operators are technically business owners, and will require more coverage than employees. It is important to begin with the legally mandated insurance and research what else you are responsible for in the case of an accident. For example, physical damage is required for most new trucks. After doing a little research, discuss your options with an insurance representative.

How do I avoid overlapping coverage?

Overlapping coverage occurs when two insurance policies offer the same coverage for a risk. This can happen when switching policies or when a company and driver both carry truck insurance. Overlapping coverage will cost extra money. The best way to avoid overlapping coverage is to stay on top of your insurance needs, and discuss the dates and coverage of your policy with an insurance specialist.

What is the minimum coverage for Truck Insurance?

The minimum liability truck insurance required is 750,000 dollars. The minimum may change depending on other circumstances. For example, physical damage insurance should cover the cost of the truck. Carrying cargo across state lines will require carry cargo insurance of at least 10,000 dollars. The type of cargo and truck will alter the minimum amount of coverage to drive on the interstate.

Does my Truck Insurance have to be with the same company as my other insurance?

Truck insurance does not have to be with the same company as your other insurance. Not every insurance provider, however, carries truck insurance. It is more important to find a company that has experience handling truck insurance and a good rating with A.M. Best. If you already use a company that handles truck insurance, however, see if you can get a better deal from your representative.

What questions will my representative ask me when I call?

The questions your representative asks will help determine the policy that you need, as well as the cost of truck insurance coverage. Be prepared to provide the location of the vehicle along with the model, age, and VIN. An insurance representative will also need to ask about the driver and his or her insurance history. Company information and cargo are also important in determining insurance coverage.

What does the rating system mean and how can I find out how my insurance company is rated (A, A+, A++)?

A.M. Best ratings are financial strength ratings. To put it simply, the ratings come from A.M. Best’s belief in the company’s ability to pay policies. The rating system runs from A++ to S. The A++ and A+ ratings indicate superior companies; and the A and A- ratings are considered excellent. B++ and B+ are good ratings, while B to B- are fair. Insurance companies with high ratings will usually advertise the fact, but the website A.M. Best will help you discover the ratings of your insurance company.

What is Bobtail Insurance?

Bobtail insurance is also called non-trucking insurance. When owner-operators are driving a truck on an errand that is not related to a dispatch, liability insurance may not cover the cost of the damage, particularly if another company or motor carrier holds the liability insurance. This is when bobtail insurance takes over. Bobtail insurance covers physical damage and bodily injury when liability insurance is not in full-effect. Bobtail insurance, however, is not a replacement for primary liability insurance. Many motor carriers demand that owner-operators carry their own bobtail insurance policies before they hire them to take on jobs. Bobtail truck insurance can cover one million dollars or more, and the insurance may be sold as part of a group-leased, operator plan.

Even if bobtail insurance is not required, it is a good idea for drivers to carry it, particularly owner-operators. Accidents can happen anywhere, at any time. An accident is just as likely to occur once the cargo is dropped off as it is when the cargo is being transported. Bobtail insurance is worth adding to an insurance policy. The cost of an accident that is not covered by insurance could be much more than the cost of a bobtail insurance policy.

What is ICC Authority?

ICC authority or MC Authority is permission granted to truckers by the federal government to transport cargo across state lines. Any truck or vehicle that moves regulated freight or passengers throughout the country must have ICC authority. Truck insurance companies can file for drivers to obtain ICC authority and a DOT number. The fee for the application process is roughly 600 dollars.

ICC authority requires a minimum amount of truck insurance coverage, which depends on the weight and cargo of the truck. A smaller vehicle with a gross weight of fewer than 10,000 pounds is only required to have the minimum liability coverage of 300,000 dollars and a 10,000-dollar cargo insurance policy. Most trucks that weigh more than 10,000 pounds need to carry 750,000 dollars in liability insurance and 10,000 in truck insurance.

Transporting hazardous material across state lines, however, requires more insurance. A liability policy of one to five million dollars is required to move hazardous materials. Class A and B materials, such as explosives, demand coverage of at least five million dollars. The required truck insurance for ICC authority may cost a little more, but considering how it expands the number of job opportunities for drivers, it is worth the extra time and effort.