Commercial Truck Insurance is highly regulated by the Federal and State governments, which mandate that truck owners operating on an interstate level with “regulated” cargo have specific kinds and levels of coverage. Also there is no uniformity from state to state in the amounts and kinds of insurance required, which further complicates obtaining the proper coverage. These aspects of commercial truck insurance can make it a sometimes confusing subject for the beginner.
Generally speaking, however, commercial truck insurance can be broken down into the following categories.
Primary Liability Insurance
Primary Liability Insurance coverage insures the truck owner against damage and injuries to others in the event of an accident with his truck. This coverage is required by state and federal governments. Truck owners are required to send them proof of coverage. Coverage typically ranges from $35,000 to $1,000,000, although additional coverage above $1,000,000 is sometimes obtainable under special circumstances and for additional fees. Premium prices depend on the region, driving records of the truck owner, and how long the truck owner’s business has been in operation.
Physical Damage Insurance
Coverage for the truck owner’s truck and trailer is provided by Physical Damage Insurance. This insurance type provides for the repair or replacement caused by damage as a result of such events as collisions, fires, theft, hail, windstorm, earthquake, flood, mischief or vandalism to the owner’s truck or trucks. The value of the truck owner’s equipment determines the premium pricing, and the coverage obtained is for a certain percentage of the value of the vehicles. Physical Damage Insurance is frequently required by the lien holder, if there is one, of the vehicles.
Motor Truck Cargo Insurance
Insurance coverage for Motor Truck Cargo provides protection to the cargo transporter for his obligations and responsibilities for the cargo should it be damaged or lost. The truck owner purchases this type of insurance according to the maximum load limit for a truck. Policy coverage can range from $10,000 to $100,000, but coverage in greater amounts is also available. The premiums for Motor Truck Cargo Insurance vary according to the kind of cargo being transported and its value.
Trailer Interchange Insurance
Trailer Interchange Insurance provides insurance coverage for the truck owner’s liability for loss or damage to trailers and equipment belonging to others which are in the truck owner’s possession, according to the terms of a trailer interchange agreement.
Non-Trucking Liability Insurance
Non-Trucking Liability Insurance offers liability insurance for owner-operators leased to an ICC carrier. This type of insurance offers limited liability protection to the truck when the owner-operator is not engaged in company business or pulling a loaded trailer for the company. For This type of truck insurance would come into force when the truck owner-operator takes his trucks in for repairs and other non-company errands involving use of the vehicle.