We Make Trucking Authority Insurance Easier

Way to go on getting the trucking authority for your new trucking business! Now, it is time to start considering your insurance options. Read on to know all about how commercial trucking insurance works, what it depends on, where to look for it and how to make the most informed choice.

 

What You Need to Know about Truck Insurance for New Authorities

Whether you’re an individual trucker like a motor carrier authority or a large one, insuring your vehicles and all business-related resources is a must. Authority Insurance can be an expensive, yet necessary thing for a business that owns only one or two trucks. The type of trucking authority  youwant to buy will depend not only on the number of trucks you own but also the type of truck, the quantity and nature of cargo that will be transported and how experienced your driver is. All of this information will give an idea of the risks incurred, based on which you can choose the best insurance plan.

The insurance plan you choose for your business will have a number of provisions covered. Understanding what is insured, what isn’t and how frequently you make payments can help you choose the best plan.

This covers costs for any bodily harm or damage to property that may occur from road accidents when your driver is at fault. It is a mandatory requirement by law for all commercial trucks. As a trucker, if you don’t have primary liability in your insurance package when on road, you could incur fines and penalties.

 

It covers costs for accidents which happen in the business premises. It includes expenses for bodily harm or damage to property when you are at fault. This could include a customer slipping and falling in your place of business or damage to items which you may have rented.

Basic Insurance Coverage

Basic coverage or physical damage insurance covers expenses for damages to your trucks irrespective of whose fault it is. There are two types of basic coverage:

  • Collision Insurance: It covers the expenses for damage caused to another vehicle as well as your own vehicle, in an accident, when you were at fault on the road.

Comprehensive Insurance: It covers expenses, up to a maximum value, in the case of non-collision accidents such as vandalism, fires or even natural disasters.

Companies providing commercial trucking insurance usually have specialized options for specific situations of damage. Companies may also specialize in providing insurance for particular kinds of vehicles.

Non-Trucking Liability

This covers expenses for damages which may occur when your truck is being operated but not for transporting cargo i.e. not for business-related reasons. It covers the same aspects as primary liability but when you are not on business duty.

 Cargo Insurance

It covers expenses for the loss of cargo or damage caused to products while loading or unloading from the trucks or when they are hauled. The maximum value of the insurance cost depends on the type of product being compensated for and its value.

Occupational Accident Insurance

It is generally required by most companies. If you are an owner-operator, it covers you from accidents and for your health expenses which occuredbecause of your work. This means that it covers you in case of accidental death or dismemberment while driving the truck.

 Umbrella Insurance

It generally covers any gaps that may have occurred in the policy plan.  

The premium for your insurance package is paid once a month and will have to be made as long as the policy lasts. You may choose to combine paying your premium along with your truck payments, if you buy the insurance from a dealer. However, that turns out to be more expensive and it is advisable to buy an insurance plan directly from a company such as ours.

 

The insurance deductible is the amount of money you would have to pay the company before the company pays you for the claims you have made. Deductibles depend on the amount of risk incurred to the insurance company. For instance, if you have a driver who has a high record of accidents he is a great risk for which the insurance company will have to cover. In such a case, your deductible will also be relatively higher, in proportion with the risk incurred.

The final cost of buying a commercial trucking insurance will depend on a number of things such as what type of coverage requirements do you need, what type of cargo will your business be transporting, what type of vehicles you own and your drivers’ driving history.

Make sure you compare insurance policies from different companies before buying it. When you figure out the best plan for buying insurance, you may either go through an insurance broker or buy it directly from a company such as East Insurance. Several new authorities all over the country have used our services to find the best deal, so we understand what you are looking for!