How Does Commercial Truck Insurance Work?

Commercial truck insurance is essential coverage for a small enterprise or an owner-operator offering trucking services. Geared primarily toward bigger corporations, insurance generally is a costly item for a firm that owns only one or two trucks. The options available differ in line with the type of truck, the products carried, the risks incurred and the number of years’ experience the motive force has. The insurance package you choose for what you are promoting will likely embody several different types of coverage, and understanding how these work will enable you to determine the options you need.

Fundamental Coverage

Primary coverage consists of collision coverage and complete insurance. Collision damage insurance covers the prices of the opposite vehicle from an accident in which you had been at fault, as well because the damage to your vehicles. Comprehensive insurance works equally to regular motor vehicle insurance, covering the price of repairs to your vehicles, up to a most value, that is covered by something apart from a collision.

Specialised Coverage

Companies providing commercial trucking insurance have quite a lot of specialized options to decide on from. You need coverage for every doable state of affairs in which your truck may very well be involved, without increasing the price to an unaffordable amount. In addition to primary coverage, the trucker who transports cargo on behalf of shoppers wants commercial auto liability, which provides coverage for bodily accidents and damage to the property of others. Cargo insurance covers the loss or damage of the cargo, and the price depends upon the type and value of the cargo.

Non-Trucking Coverage

Types of coverage not directly associated to the transportation of cargo include bobtail insurance, non-trucking liability coverage, occupational accident coverage and coverage for personal items within the truck. Bobtail insurance applies after the truck’s load is delivered and the vehicle is touring without cargo or a trailer, or if the owner makes use of the truck for personal use. This is just like non-trucking liability coverage, which applies when the vehicle will not be transporting cargo, whether or not it is pulling a trailer. Occupational accident insurance covers the owner operator for unintended dying or dismemberment that happen in the midst of truck driving.


The premiums on the insurance package you select are payable monthly in advance. Payments can be mixed with the truck payments in the event you purchase the insurance by means of the seller, however this may work out to be more costly than shopping for directly from an insurance company. The premiums are payable at some stage in the policy’s life. You’ll be able to cancel at any time and the cancellation is not going to affect your credit rating, but you will be liable for the payment of all premiums due previous to the date on which cancellation takes effect. Premiums may be higher if you or your driver has a bad driving record.


Your premium relies upon partly on the deductible you choose or for which you qualify. Drivers with accidents on file have a higher deductible, because of the risk to the insurance company. Deductibles vary from $500 to $2,000, and are paid first in the event of a claim. For instance, in case your deductible is $1,000 and repairs $1,500, you pay the deductible to the repair shop first and the insurer pays the remaining $500. If you choose not to face a high deductible, take a low deductible and higher premium. For corporations with skilled, accident-free drivers, a higher deductible and lower monthly premium is a safe option.

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