We Make Truck Driver Insurance Easier
Commercial trailers can be of several types. It can be an auto hauler, a dry freight trailer, a flatbed trailer or a utility trailer. Insuring your commercial trailer can be a necessary part of your trucking business. We at East Insurance Group are here to help with all the information you need for insuring your trailer. You can also find the most reasonable rates for commercial trailer insurance with us.
Most states require businesses to insure all vehicles and resources used commercially. While the actual requirements may differ in each state, it is generally a good idea to insure your trailer for your business purposes.
What Does Trailer Insurance Cover?
A dry freight trailer insurance covers a lot of things. It can be a semi-trailer, a box truck or a smaller commercial vehicle, but they all require insurance and will typically cover the following:
When you are at fault during an accident on road, it pays for damages to the other person involved.
It pays for damages that occur on your business premises and not on the road. For example, damages caused by fires, vandalism, theft, etc.
It pays for damages caused because of a collision. It covers your trailer and not for the other vehicle.
It pays for damages caused to your goods, merchandise, or any type of cargo you may be hauling while on the road. Note that there might be some exceptions, such as tobacco, liquor, and jewelry.
It is a type of cargo insurance that pays for removing debris or goods materials that may have been strewn on the highway because of an accident.
Another type of cargo insurance pays for damages to the cargo that may have occurred during loading or unloading.
It pays for any loss of income you might have otherwise earned if your goods/cargo were not damaged, lost, or stolen. It acts as compensation for the shipment you would have otherwise successfully delivered.
This means that after an accident, you would have to pay only a single combined deductible for all your liabilities instead of paying for them individually.
How Much Does Trailer Insurance Cost?
Let us take a dry van trailer i.e., a trailer that is not temperature controlled (say with refrigeration equipment to deliver meats) as the baseline for figuring out trailer insurance. If you do have refrigeration equipment or perhaps, utility trailers for business purposes, the costs can be quite different and generally more expensive.
Commercial trailers used for business reasons such as by a trucking company to deliver and pick up goods must have insurance and valid registration with the state motor vehicle department. The cost of the insurance can vary according to the state of operation, type of goods hauled, which determines the type of trailer used, the hauling capacity or weight of the trailer, and distance of travel.
Your regular dry van trailer can cost anywhere between $7,000-$9,500 a year. Within that range, how much your insurance costs will depend on:
- Driving History: A clean driving record will mean lower risks for the company and hence, lower premiums.
- Driving Experience: It is more likely that an experienced driver with a commercial driving license can have a clean driving history than, say, a 21-year-old without much commercial driving experience.
- Area of Operation or Distance Covered: Greater distance can sometimes mean higher premiums.
- The Limits of Your Policy: If you want to buy insurance that has high coverage limits, then your premium amount will also be more expensive.
- Deductibles: If you can afford it, then opting for higher deductibles will lower the premium amount.
- Your Payment Plan: It is generally observed that paying your premium amount upfront once a year instead of paying every month can help you save almost 10%-20%.
- Your Insurance Company: At the end of the day, the cost of your insurance policy is determined by one of the several insurance companies. The cost can vary depending on whether the company is small or big, new or old.
Additionally, whether or not it is required, it makes good sense to buy property coverage for your commercial trailer for repair or replacement of parts in the case of an accident. You would, especially, want to cover property insurance on your trailer if it has significant value or if you still owe money on it via installments. Else, you may have to pay expenses out of your pocket should any damages occur.
Do Commercial Trailers Need Insurance?
Commercial trailers need insurance to stay safe and compatible in the market. A commercial trailer has a few responsibilities when carrying something through the public paths. Therefore, it must get coverage from many aspects. In general, commercial trailer insurance will offer liability coverage, collision coverage, cargo coverage, earned freight coverage, debris removal coverage, and comprehensive coverage.
There is also a combined deductible, making it easy for the customer to pay their liabilities after an unfortunate event. Depending on a few factors like driving history, experience, policy limits, and the insurance company, commercial trailer insurance may cost you various amounts. However, by selectively picking what you deal with, you can make these insurance packages more cost-effective.
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