A Beginner’s Guide To The Different Types Of Commercial Truck Insurance
The commercial truck industry is one of the most diverse and highly regulated industries in the United States of America.
This is because the commercial trucks can be utilized in a variety of areas and all will mandate the use of different truck insurance coverage amounts.
For example, a commercial trucking company can be used to haul household goods, garbage, refrigerated products, building materials, fuel or hazardous material. By being utilized in so many different applications, it makes sense that special insurance packages are required.
This article provides information on the different types of commercial truck insurance.
1. Primary Truck Liability Insurance
Primary truck liability insurance is a type of commercial truck insurance required by all commercial vehicles operating in the United States. This insurance plan entitles drivers to full financial coverage for any injuries or damages when involved in an auto accident where the truck driver is at fault. Motor carriers often provide staff with this insurance as a means of protecting their employees when on the job. Unfortunately, staff will require additional coverage to protect any personal assets.
2. Non-Trucking Liability Insurance
Due to the fact that liability coverage is required at all times when a truck is on the road, motor carriers will cease to provide coverage for their independent drivers when the job is finished. In these cases, non-trucking liability insurance can be obtained, and this insurance will provide coverage for drivers without forcing them to pay when covered by other plans.
3. Physical Damage Insurance
An independent truck driver’s most valuable asset is the truck, and it is vital that the truck remains well-maintained. If the truck is damaged, it will need to be repaired to allow the driver to continue earning a living. The physical damage insurance plans will cover any cost of damage in an auto accident where the truck driver is or is not at fault.
4. Comprehensive Truck Insurance
Comprehensive commercial truck insurance can be seen as a continuation of the physical damage insurance plan. It can be viewed as a policy that includes primary truck liability, physical damage insurance, and other insurance clauses preventing against natural disasters, theft or vandalism. If you are looking for coverage of personal assets, then comprehensive truck insurance is typically the best alternative.
5. Motor Carrier Insurance
Motor carrier insurance usually incorporates the same plans as regular trucks, but motor carriers will need to over coverage for all vehicles employed. By bundling the general liability policies, truck, cargo and trailer insurance plans, and worker compensation plans within the company it is possible to save a significant annual premium.