All You Need to Know About Commercial Truck Insurance

Per the U.S. Department of Transportation (DOT), more than 500,000 truck-related road accidents happen on American highways and roads every year. Although truck drivers only cause about 25% of these accidents, truck insurance coverage is a crucial aspect of the trucking industry.

Why Do You Need Commercial Truck Insurance?

Driving a truck carrying a large load is an immense responsibility. If you are involved in a crash, there is a high likelihood that there will be fatalities or the smaller vehicle will be totaled. Moreover, you’ll likely face costly lawsuits. This makes adequate truck insurance essential for your trucking business. Whether you own one truck or a fleet of commercial trucks, you’ve made a significant financial investment. To protect your investment, you need an insurance policy that’s customized to your circumstances.

Truck Insurance Coverage

The standard commercial truck insurance policy provides the essential coverage required for commercial vehicles. This includes the state-required minimum property damage and bodily damage liability coverage. However, insurance companies also offer additional coverages for commercial trucks, including:

  • Non-trucking Insurance Coverage: This coverage option caters to independent owners/operators who do contract work. It offers liability coverage if you’re involved in an accident during your off-work hours.
  • Physical Damage Insurance Coverage: This option covers the cost of fixing your truck in case it is damaged. If you’re leasing your truck, your dealership will likely require you to have this coverage.
  • Motor Truck General Liability coverage: This coverage protects you against liability related to damages caused due to your business activities, even those that don’t directly relate to your commercial truck.
  • Collision Insurance: Covers the cost of fixing your truck if it’s damaged in a collision with an object or another vehicle.
  • Motor Truck Cargo Insurance Coverage: Covers your cargo. You may be required to carry this if you’re hauling valuable cargo.
  • Environmental Insurance: This insurance covers pollution-related fines and losses. If necessary, it can pay for the restoration and clean-up work in the affected area.
  • Theft and Fire Insurance: As the name implies, this is comprehensive insurance coverage that protects against theft and fire.
  • Downtime Insurance/Rental Reimbursement – If you can no longer use your truck due to an accident, this coverage will enable you to continue your operations while your commercial truck is being fixed, or it’ll cover the loss of income during periods of inactivity.
  • Off-season Comprehensive Insurance – If your business operations are seasonal, this coverage will protect your truck during the off-season.

Some of the factors that determine your commercial truck insurance rates include, among others, your truck’s model/type, age, weight, and condition. Your insurer will also take into consideration your credit and driving record, as well as the average distance your commercial truck covers within a specific period.

To ensure your financial investment is secure, you should get an insurance policy that provides adequate coverage for your commercial truck. At Family Financial Insurance Group, our experts will help you choose a commercial truck insurance coverage that suits your needs.

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