Types of truck insurance in the US: Everything you need to know!

Types of truck insurance in the US: Everything you need to know!

The trucking business is inherently risky. Along with the massive cargo, there are billions of dollars that move every day on the road. This transportation is exposed to innumerable likely threats until it reaches its destination. Here carrying the right type of truck insurance that offers coverage for unforeseen incidents is more than important.

Being in a trucking business involves high risks when your commercial vehicles are on the road. Fortunately, truck insurance helps in protecting every single hazard that puts your vehicle and the shipment at risk. A comprehensive coverage act as a shield that protects your heavy investment. 

Commercial truck insurance is a vital coverage for businesses and owner-operators that provide transportation services. 

Your insurance needs in the US will be highly based on:

  • The vehicle you use
  • The type of cargo you move
  • The size of truck

What is commercial truck insurance and what are its types? How to pick the best for your need?

Commercial truck insurance protects you from paying hefty bills after an accident or collision when your vehicle is involved in the incident. Carrying an insurance policy also helps in staying legal while driving on the road.

A truck insurance policy begins with primary liability and is then added with other types of coverage. You need to carry primary liability insurance to protect the property and people from damages that your vehicle causes. This is a part of a truck license but there are other types of vehicle insurance that you should know. Understanding all will help you pick the best insurance for your needs.

Primary liability insurance

As we mentioned earlier, you need to carry this insurance coverage as this is a prerequisite by federal regulations. Even if your trucks are on the lease, you must carry primary liability insurance. This policy protects you when accidents result in third-party property damage or bodily injury.

It is mandatory to get liability insurance for all commercial vehicles. If a trucker is found without this insurance cover then they can be fined and penalized heftily. Therefore, avoid driving commercial trucks without adequate liability insurance.

General liability insurance

Almost every state in the USA requires general liability insurance. It protects your business when one of your truckers causes bodily or property damage to a third party after a crash or accident. This policy also helps you in qualifying for contracts and leases as well. 

General liability insurance also offers coverage for expensive lawsuits. It is designed to protect your commercial vehicles from a range of incidents that can put your business on hold. 

Physical damage insurance

Physical damage insurance cover will protect your commercial truck from damages that result from:

  • Theft
  • Natural disasters
  • Collision
  • Vandalism

In addition to this, if your vehicle becomes extremely damaged that it becomes irreparable then this cover will help you get it replaced. The insurance premiums associated with this policy will be determined on the basis of the type of truck you use.

Bobtail insurance 

Also known as non-trucking liability, bobtail coverage offers protection from incidents when the driver uses the truck for personal motives. In situations where the owner-operator doesn’t have adequate coverage with primary liability insurance then a bobtail policy cover helps.

Please note that bobtail insurance doesn’t offer any sort of coverage when the truck is used for pulling a trailer, driving it for another trucking company, or using the vehicle for making money.

The bobtail cover protects you from potential risks when you drive a semi-truck without haulage equipment. It secures your wallet when an accident happens. If you are transporting goods on behalf of a company then you will require some level of this insurance on your name.

Motor truck cargo insurance

This type of insurance comes under the category of inland marine cover. It protects your property and goods when they are transported with the help of a motor carrier. If you provide cargo shipment services then you will be held liable for all sorts of damage or destruction to the goods you are carrying. 

From collision and theft to fire and natural calamities, these likely risks not only damage the shipment but also the trust factor becomes questionable. The cost of motor truck cargo insurance depends on the type and volume of cargo and also the distance and time took for the transport.  

Reefer breakdown insurance

Reefer breakdown coverage is designed for businesses that own refrigerated trucks. This insurance offers coverage for incidents like:

  • Lost freight
  • Refrigeration breakdown
  • Product damage due to collision

Some insurances have exclusions for products like seafood, tobacco, frozen food, etc. 

Trailer interchange insurance

Trailer interchange insurance is common in the transportation industry.  When truckers transport trailers that belong to other trucking companies or transporter. This exposes the entire process to a great risk of damage or accidents during the journey. 

Trailer interchange coverage provides protection from all types of physical damages that can occur during this trailer pull. This insurance cover protects the trailer from vandalism, theft, fire, and collision.

Rental reimbursement

If your truck gets damaged and needs thorough repairing then you can use this insurance to meet the cost of the new rental truck. This insurance covers the cost of a truck for temporary or rental use. 

Until your own vehicle is ready to hit the road again. You can use a rental truck and reimburse its cost with this insurance coverage.

To conclude

Every business has a different type of need when it comes to insurance. No matter how many commercial vehicles you use for the transportation of goods, you should get each one insured.

A trucking business comes with numerous risks. Many unexpected incidents can drain you financially. Having the finest truck insurance coverage gives you confidence and a sense of protection whenever your commercial vehicles hit the roadway.

Keep in mind that a policy having low cost might seem an attractive option but can fail to provide the coverage for things you actually need. Consider examining the terms of coverage and see all the inclusion as well as exclusion before agreeing to it. This way you will pick the appropriate type of insurance for your vehicle.