All You Need to Know about Long Haul Trucking Insurance
In the trucking business, finding insurance for long haul truckers can be very difficult. Long haulers also require the same types of truck insurance such as primary liability, cargo insurance, physical damage coverage and so on. The only difference is that these truckers will haul cargo and goods over long distances, sometimes over a radius of 500 miles.
This means that truckers will be on the road for long periods of time and their work schedules are not defined by nine-to-five routines. It also means that long haul truckers require insurance coverage in the middle of the night, far away from their business premise and sometimes even on weekends.
This is why many insurance companies are hesitant to insure long haul truckers. It is really a matter of the amount of risk taken — the more number of miles a trucker drives, the more risk he takes of meeting with an accident. Some insurance companies provide coverage only up to a 300-mile radius, whereas some other provide up to a 500-mile radius. Very few insurance companies agree to provide coverage beyond a 500-mile radius.
Here’s everything you need to know about long haul trucking insurance.
What is Long Haul Trucking Insurance?
Similar to commercial automobile insurance, long haul trucking insurance is required by the law if you drive a tractor-trailer or other large truck. Generally speaking, trucking insurance consists of two parts: liability and physical damage, and together they provide full coverage.
Who Can Provide Long Haul Trucking Insurance?
As an owner-operator who is transitioning into a long haul trucker, your current insurance provider may provide coverage for the increased driving area. You don’t necessarily have to find a new insurance policy or company. Although it is recommended to shop around for insurance providers that specialize in LHT, it might make sense to stick with your current insurance company.
On the other hand, if you are new to the trucking business, as an owner-operator with your own authority you could probably go for one of the bigger, more popular insurance companies. Once you are seasoned enough in the industry, you may be able to negotiate better LHT deals from smaller insurance agencies that may have initially not agreed.
What You Need to Apply
Here are some of the requirements to apply for a long haul trucking insurance policy:
- A trucker’s application that is completed
- Information about the driver such as CDL experience
- Motor vehicle records
- Any losses or claims in the last 3 years
- Some carriers ask for IFTAs (International Fuel Tax Agreement)
- Other financial documents
Insurance companies ask for the above information and calculate how much of a risk you will be to them. Higher the risk means higher the premium amount that will be quoted to you.
How to Reduce LHT Insurance Rates?
Long haul trucking insurance is generally more expensive than if the trucking business is operating in an area of a smaller radius. However, there are still some things that can be done to reduce your monthly bills:
- Take Only Relevant Coverage: Some important coverages like liability, physical damage and cargo insurance are mandatory. But some insurance companies try to include coverages that you absolutely don’t require so that your premium amount increases. For instance, if you operate only within a 250-300-mile radius of your business location then make sure your company has charged you for just that much and not for a 500-mile radius coverage.
- Ask for Higher Deductibles: In order for your monthly premium amount to be lowered, you can ask for higher deductibles — the amount that you will have to pay out of your pocket when an accident does occur. But be careful with this one, sometimes if your deductibles are very low you might have to pay large lump sums of money for damages during an accident and that will defeat the purpose of having trucking insurance.
- Compare Quotes from Multiple companies: If you are switching to a long haul trucking business then consider which would be cheaper — continuing with your current insurance provider or buying a fresh insurance policy from a new company.
- Maintain a Good Driving Record: This is a no-brainer. Considering the amount of risk involved in buying LHT insurance, it helps if you can show a driving history with excellent records and a well-seasoned driver with a commercial driver’s license. Showing a safe driving record illustrates responsibility and it will mean that you are not at high risk for the insurance company.
Commercial trucks are extremely big. Because of this, they can become imbalanced once they run empty. Furthermore, if the trailer dives down while going through slippery and uneven surfaces, it could get damaged and cause injuries to the drivers and other people.
What Does Long Haul Truck Insurance Cover?
- Liability Insurance: This type of policy is required and it covers damages to other people’s property in case of an accident.
- Physical Damage: This type of policy covers the damages to the trailer, and that includes fire and theft.
- Securement Coverage: This type of policy comes only for commercial trucks and it protects the equipment that secures the cargo.
- Long Haul Cargo Insurance: One of the most important policies for commercial trucks because it covers the damages to the cargo that is being hauled.
]What you should especially keep in mind as a long haul trucker is to find a Long Haul Trucking Insurance company that is quick and efficient in its claims service, because you will be on the road at odd hours of the night, on weekends, and on holidays. Should an accident occur at, say 1 AM around 400 miles away from your business premises, will your insurance company be able to provide claims service to you within 24 hours?
This is important because you should, ideally, be able to deal with an accident, recover from it as soon as possible or make alternative arrangements so that your shipment is delivered on time.
At East Insurance Group, we strive to provide you with a gamut of insurance policy options that will suit your specific needs. Give us a call today and find out what we can do for you.
How Much Insurance Does a Trucking Company Need?
Long haul trucking services are constantly exposed to many threats, primarily when covering multiple states with different laws and regulations. Therefore, a trucking company needs a comprehensive insurance package that would protect it from virtually every problem out there. Given that you may have to cover a radius of 500 miles or more, the extra coverage options come in handy.
Long haul truck insurance for the entire fleet will constitute various coverage options like cargo insurance, securement damage, trailer interchange, physical damage, and liability insurance. Therefore, even if the slightest issue is causing a problem to the truck, the insurance policy will offer you sufficient coverage. As a company, it means you can stay confident and manage your finances strategically.
How to Calculate Risks for Long Haul Trucking Insurance?
There are a few factors that insurance companies use to determine a customer’s risk, including:
- Driving record
- Credit history
- Radius of operation
How Much Does Long Haul Trucking Insurance Cost?
On average, the national monthly cost for long haul trucks is between $640 to $982. There are several factors that have an impact on the price of the long haul truck policy, including:
- USDOT authority
- Contractual requirements
- Type of cargo
- Vehicle type
- Driving history
Long Haul Trucking Insurance Requirements
All states in the US require drivers to carry liability insurance for their long haul trucks. This type of policy covers bodily injuries, property damages, and medical expenses.
Who Needs Long Haul Trucking Insurance
Hauling insurance is an exclusive type of policy made for commercial trucks. This type of insurance is specifically designed for people and companies that offer long-distance trucking services.
Confused about long haul trucking insurance, or need some help getting a quote? Call us or fill out a quote request form and get all the information you need fast and for free!
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