9 Facts About Commercial Trucking Insurance that You Must Know

Jan 18, 2023

Commercial Truck Insurance

9 Facts About Commercial Trucking Insurance that You Must Know

It's usually a good idea for trucking companies to start with an insurance agent who works with multiple insurance firms to give you a wide selection. The first insurer you come across in your search may not be the best. Here are crucial commercial trucking insurance facts to consider when seeking coverage.

What Should an Owner-Operator Know and Do Before Purchasing Insurance?

Sometimes, it takes hours of research to find the right insurance policy match for a business. An agent who networks with multiple companies can find insurance underwriters who have worked in specific industries.

FMCSA and DOT Basic Requirements for Insurance

One of the most crucial commercial trucking insurance facts is that FMCSA and DOT require truck drivers to carry $750,000 for a combined single coverage limit. This liability coverage pays for accidents you cause to other parties.

How Are Insurance Premiums Affected by Hauling Hazardous Materials?

Truckers who transport hazardous materials (HAZMAT) must file with FMCSA and add extra coverage to their liability policy. Another coverage add-on is needed when you haul oversized or overweight loads. Your insurance agent can help ensure your company meets regulatory requirements.

What Drives the Cost of Insurance?

The liability part of your trucking insurance accounts for 60 to 70 percent of your premiums. Regardless of whether you own, rent, or lease equipment, it's important to carry insurance to pay for physical damage from accidents, theft, or vandalism.

Understanding Commercial Truck Insurance Deductibles

You have the choice of adjusting your deductible, which is the amount you pay when filing a claim before your coverage pays the rest. If you want to lower your monthly premiums, you can raise your deductible to pay more when you file a claim. If you would rather pay less when you file a claim, you'll pay a higher monthly premium.

Work with an Insurer That Understands Your Industry

It's helpful to choose an insurer familiar with your industry because it can accelerate reimbursement for a claim. Insurers experienced in your industry know what to expect and understand the need to resolve the issue quickly. They are more likely to work with claims adjusters who are also experienced in your industry.

Important Questions to Ask Before Zeroing in On an Insurer

  • How is the insurance company viewed by rating agencies?
  • Is the policy limited or unlimited, which offers wider coverage?
  • Is the policy categorized as broad form or specific peril cargo form?
  • Do you need to pay for extra deductibles?
  • Are your deliveries just local, or is your travel broader?
  • Does the insurer allow 24/7 claims reporting?
  • What type of reviews of the insurer do you get from colleagues?

Once I Get the Insurance Done What Are the Next Steps?

Your insurer reports your filing to FMCSA to confirm insurance coverage. Ultimately, your insurance record links to your MC/DOT number, which you can use to seek loads from a broker/shipper. Your trucking business will run more smoothly with a dispatcher.

Get the Right Trucking Insurance Now with GrayStone!

After you find the right insurer, you'll need to choose a deductible. Carrying sufficient liability coverage is essential for all truckers. Contact us at Graystone Insurance Group for more commercial trucking insurance facts.