Owner-operators of commercial vehicles are some of the people who have to be most concerned about auto insurance. After all, their job depends on having a running car and also being able to protect what their truck is hauling. So, while it’s a better idea to get more than just the basic liability on commercial trucks, liability is a start.

Commercial liability insurance covers commercial vehicles that are leased or owned by a business. Coverage generally includes coverage for damage and collision, as well as injury and wage loss. It’s a good idea to have these to protect your business and your well being if you get into an accident with a commercial vehicle.

Many of the bigger insurance companies will offer commercial truck insurance, and you can even get quotes from many of them online. Some companies, though, don’t offer online services, so looking for an insurer for a commercial vehicle may require more sweat than for just a regular car.

Cheers,

Fashun Guadarrama

Now that we know where to go to get insurance on commercial trucks, how do you know what kind to get? It’s best to play it safe when it comes to these kinds of vehicles, considering that so much depends on them, so while just the minimum liability for the state is required on them just like any other car, it’s best to think ahead and get more extended coverage.

Now, this applies even if you’re leasing your equipment. You may not be the one actually using your truck, but you’re still required by federal law to have primary auto liability, so that it’s covered if there’s an accident and someone’s injured or another vehicle is damaged. In most cases, the equipment provider will deal with this type of insurance, so you don’t have to worry about it.

You can also get physical damage coverage. This the law doesn’t require, but if you’re financing your equipment the financer just might. What it does is cover the damage to the truck or the trailer, and the premiums cost a percentage of the market value of the vehicle.

Then there’s cargo coverage insurance, which is just as important as the rest. This covers the damage or loss of any cargo being transported, and can save you from having problems beyond just your truck in the case of an accident. This coverage usually doesn’t extend to damage or loss when a truck is left unattended, and many insurance companies will put a cap on the amount of coverage you can get.

Terminal coverage protects cargo only at a specific location, and comes with a time limit (as high as 3 days) for loading or unloading. Warehouse legal extends this coverage for longer.

Cheers,

Fashun Guadarrama.

Reader question:

I’m investing in getting my own truck to be a truck driver. What do I need in terms of truck insurance?

Randy

For people whose business revolves around their wheels, insurance is one of the most important things of all, Randy.

For truck drivers, auto insurance is key to the success of their business, especially when you consider that their entire income is wrapped around that vehicle and what it holds. If something goes wrong, they can’t just carpool or take the bus to their destination; that’s the rent. So what does a truck driver do when it comes time to get insurance?

• Pick your deductible with reality in mind. Choosing a higher deductible may make your premium cheaper, but remember that commercial trucks are big vehicles and expensive to repair, so you want to pick a deductible that you can realistically afford.
• Combine deductibles. Not all agencies offer this, so find one that does. If you combine your deductibles, you can pay for truck, trailer, and cargo together instead of making separate payments.
• Don’t just think about price. A reasonable price is a reasonable desire, but you need to get with an agent that you trust. Instead of just looking at quotes, rely more on recommendations from fellow truck drivers.
• Look around. There are lots of ways you can get insurance on your commercial truck, be it through the trucking company, a finance company, or a trucking association. Lots of trucking companies offer special group rates for their owner-operators, and let you pay deposits in installments. Finance companies let you put your premium with your equipment payment. Trucking associations offer group rates for owner-operators and smaller trucking companies.

Cheers,

Fashun Guadarrama.

Commercial car insurance provides protection for autos and equipment owned and leased by your business. These policies normally consist of collision and damage coverage for your vehicles in addition to coverage for property and personal damage to your employees and others, including items like bodily injuries and lost wages. Commercial car insurance is critical to protect your company’s assets in the event of an accident.

Business owners and managers are responsible for insuring that their companies are protected with the same types of insurance coverage that we all carry personally to protect ourselves and our families. Government mandated liability coverage is basic for every vehicle owner, and collision and comprehensive, medical payments (called personal injury protection in some states), and uninsured motorist coverage can be even more critical for businesses with more assets to protect in the event of a lawsuit.

What if you or your employees drive the same vehicle as both their business and personal car—do you need commercial car insurance? Even if you have a personal umbrella liability policy in place, it probably excludes business-related liability incidents. Your company will probably need to make sure you are adequately covered for “non-owned” vehicles used by employees to run errands and visit clients, as well as coverage for cars that employees may rent when traveling.

Your insurance agent will know what questions to ask you to determine how to best insure these vehicles. Your goals are to not only get the most economical policies possible, but also to make sure that your business is adequately protected. Who owns the vehicles (the company or the employee), how much of their use is business and how much is personal, and what type of driving (travel, off road job sites, etc.) are expected are just some of the issues that your agent will go over with you during the insurance interview.

A commercial car insurance policy does differ from a personal policy in many technical aspects, but the major types of coverage are the same as your personal car insurance. Your insurance agent will go over all of the options available, but it is your job to make sure you understand the differences and technicalities in your policies.

The cost of your commercial car insurance will vary considerably depending on such factors as:

• Types of vehicles to be insured (sedans, tow trucks, dump trucks)
• The drivers themselves (your insurance agent will need to do background checks on all drivers—do you have employees with DUIs?)
• Your business type (large corporation or small start-up partnership)
• How much coverage you need (especially liability limits)
• The competition in your market for insurance business