The 10 Commandments of Commercial Truck Insurance pt.1

As we’ve mentioned many times before – commercial trucking insurance isn’t a matter one delves into with ease. The world of insurance can get pretty overwhelming and even confusing at times and commercial trucking insurance isn’t different. Because, let’s not lie to ourselves, dealing with insurance isn’t on top of your list of favorite things to do on your spare time, is it? However, it can save you money. Furthermore, trucking insurance can save your business. Tow trucks, dump trucks, auto haulers, semis – every category has a different insurance needs, different rates and different factors to take into consideration.

But, in order to make things easier for you, we’ve set up a list of ten things you need to know about commercial truck insurance, if you want to get the most for your money. We call the list “The ten commandments of Commercial Truck Insurance” and we shall share it with you.

1. Remember, there is a vast amount of different coverages for trucking business – choose wisely!

As there are many different risks for your trucks and business, there are also many different coverages for your trucks and business. Each coverage protects you, your company or your vehicle from some risk. And since truck operations are as different as they come, they need specifically customized coverages and insurance plans in order to stay safe and protected. The things is, a long-haul trucking business faces different risks than, say, a dump truck business, for example. So, the long-haul trucking business will need different coverage.

2. Stay safe! It’s good for your truck insurance rates (among other things)!

Keeping your business as safe as possible is good for it in many ways, one of which is helping you avoid claims. Too much claims can cause your insurance rates to skyrocket. So, if you want low trucking insurance rates, make sure you are doing everything in your power as a business owner to prevent accidents. Take the right measures. Some of them include:

- wage a war on distracted driving – show zero tolerance to texting while driving or using the phone while driving. More than 2000 lives are lost to distracted driving each year;

- keep your trucks and vehicles mechanically sound – regular check-ups and good maintenance can keep accidents to a minimum;

More on what to do to keep your trucking business safe here – “4 safety tips to avoid trucking accidents”.

3. Hire drivers with pristine driving record!

The main factor that causes your truck insurance rates to rise is bigger risk. If the drivers you hire or you work with have MVRs (Motor Vehicle Records) showing accidents or speeding tickets – this can be seen by insurance companies as a big risk. And if there is a risk, you will have to pay more. In order to keep insurance rates as low as possible, you should have a proper and thorough hiring process. A good background check and alcohol/drug test are a good start.

4. Location and operation are also insurance factors!

A big part in your rates is played by many, seemingly small, details. For example, insurance companies will be interested in things like your business’ radius of operation or location. If your business operates far from its location or you operate a long-haul trucking company you could be facing some insurance rates, which are higher than usual. Whether you cross state lines or not is also important. 

5. Always get physical damage insurance – it can save your business!

Ok, so, this one is a no-brainer, physical damage insurance protects your truck if it gets damaged. But here is the kicker – it depends on the type of damage. The physical damage insurance consists of two parts:

- collision coverage – this one will cover the repair or the replacement of your truck if it gets involved into and accident on the road. Like hitting another vehicle, for example;

- comprehensive coverage – this type covers the repair costs or replacement cost if your truck gets damaged from natural disasters, vandalism, animal attacks, falling objects etc.

To sum it up, if something happens to your truck that gets it totaled or in dire need of repair, your business will be hurt. Especially if you are a new owner-operator operating a single truck. However, if you have a physical damage insurance – your business will have one last line of defense against bankruptcy.

If we have your attention with our list, we will soon publish the second part of it, it is the 10 commandments, not the 5, after all. So, for the second part, you can follow this link here – “The 10 commandments of Commercial Truck Insurance pt.2”