For those truck business owners who drive their 18-wheeler vehicles without hauling any equipment i.e. without a trailer or with an empty trailer, bobtail insurance or deadheading insurance is a necessity. Business owners need to know
How Much Does Bobtail Insurance Cost?
Bobtail insurance could cost you around $400 on average annually and commonly covers up to a limit of $1,000,000. Sometimes this limit can be higher, rarely lower, depending on the rates that your insurance company offers you. Once you have figured out that you need bobtail insurance for your trucking business, the next step is to see how you can save on insurance and ensure maximum coverage in case of accidents or damages.
Bobtail Insurance Over Non-Trucking Liability
While the two are easily confused, bobtail insurance covers those damages which are caused when you’re driving your vehicle without cargo. Non-trucking liability only covers you when you are not under dispatch, and are being used for personal reasons. Additionally, non-trucking liability does not cost as much as bobtail insurance, which is also why it has a more narrow coverage.
Generally, most trucking companies require their drivers to be covered under bobtail insurance because it is quite common to drive without any cargo even while under dispatch.
If you have just gotten a new authority for running your trucking business and you own trucks for the same, then it is likely that you will need the following types of liabilities:
- Primary liability
- Physical damage liability/Basic coverage
- Non-trucking liability
- Bobtail liability
We understand that you want to save up on your trucking insurance, especially because the rates are ever increasing. Instead of cutting down on the different coverages, consider some of these options to save more in the long run and you won’t have to overpay for your trucking insurance.
Package Insurance or Individual Liabilities
While buying a single insurance package usually makes more sense than buying different policies from different companies, it all depends on how much the physical damage coverage is worth. Obviously, it costs more to cover a truck model released in 2015 than to cover an older model.
For older trucks, the physical damage liability can cost between $1,500-$2,500, and much more for newer trucks. If you manage to find an insurance package that covers this as well as bobtail liability and other liabilities you need, purchasing a bundle insurance is great. If not, sometimes it makes more sense to buy individual policies piece by piece as you can save upto $500 just by shopping around. So take that extra time and effort to figure out which works best for your needs.
Buy Your Bobtail Insurance Annually
Most insurance companies increase the rate of their policies every year because they know customers find it difficult to switch between companies and would rather stick to what they’re paying. However, you can save by shopping around for your bobtail insurance, if not your entire trucking insurance needs, every year and review how much it will cost you.
With our rates at East Insurance Group you can be assured that your bobtail insurance will come at a reasonable price!
Keeping Your Insurance at Low Costs
Other ways to save on your trucking insurance include considering higher deductibles because that would mean a lower cost on your monthly premium. However, in the case that an accident does occur you might have to shell out hundreds of dollars (or more depending on the damages) that you had initially saved up on with a lower premium.
The best way to maintain low costs is to hire drivers who have a clean driving record. This shows that they are responsible, hence the insurance company has a lower risk in case of accidents.
What most people ignore in not buying bobtail insurance is that it also covers underinsured or uninsured motorist liability. This means that if you have bobtail coverage and your truck was involved in an accident (whilst bobtailing i.e. without a trailer) then it can cover damages caused to the other person if they are not insured or underinsured.
How to Apply
Here is some information you will need before applying for your trucking insurance, including bobtail liability:
- Contact information of the owner operator
- What type of cargo you will be hauling (not exactly necessary for bobtail liability)
- What distance you will be covering enroute for delivery as well as pick up
- Criminal history of the driver if applicable
- Your credit report
- A history of your insurance claims for the last 3 years
After gathering all your information, you will need to get some quotes from insurance companies. Insurance brokers can help you with this or you can just visit East Insurance Group website online. You can then compare quotes from different companies and choose which one suits you best.