Trucking insurance, also called commercial insurance, is insurance specific to the transportation industry. Similar to auto insurance, coverage varies drastically depending upon the type and levels of coverage selected. When looking for trucking insurance, it is always best to speak with an insurance broker about your specific situation. With that being said, here are a few general keys to understanding this type of necessary coverage.
How Does Commercial Truck Insurance Differ From Regular Auto Insurance?
Trucking insurance actually works pretty similarly to car insurance, with policies containing varying levels of coverage. Commercial truck owners can go with basic coverage and only cover other vehicles in the case of an accident or they can opt for comprehensive coverage to cover the cost of their vehicle as well.
When deciding between basic and comprehensive, it’s best to consider the distance your trucks are driving (are you transporting cargo across the country or within the state?) and the safety of the area (are your drivers using a particularly dangerous highway?). Truck owners should also look at their financial stability to see if they can afford to personally replace a truck lost to an accident.
What Else Does Trucking Insurance Cover?
Depending on your selected policy, your insurance will consist of some level of Commercial Auto Liability coverage. If you are transporting cargo on behalf of another company, this type of coverage will help with the cost of any damaged items and protects you from costs incurred through potential lawsuits.
Is Commercial Insurance Required by Law?
Each state has different regulations for trucking insurance. In California drivers are required to have a . In order to obtain this specialized license, drivers must provide proof of commercial insurance or a Certificate of Self Insurance. The liability insurance requirements range from $300,000 to 5 million depending on the type of vehicle and amount of transported cargo. The Certificate of Self Insurance is an option also, however this basically certifies (through a verification process) that the owner has the assets (a minimum of $750,000) to cover any damage or accidents. Obviously this is the far less popular option when an individual is looking to receive a MCP.
This all sounds a little complicated…
….you’re not alone. Commercial insurance can be difficult to wade through. With a good insurance broker, you can have help securing the best commercial trucking insurance for your business and your budget. To get started, give us a call at 1-877-728-9966 or visit us at www.omnisafe.com