How Does Commercial Truck Insurance Work?

Commercial truck insurance is essential coverage for a small business or an owner-operator offering trucking services. Geared primarily toward bigger companies, insurance could be 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 goods carried, the risks incurred and the number of years’ experience the driving force has. The insurance package you choose for your corporation will likely include a number of totally different types of coverage, and understanding how these work will help you determine the options you need.

Primary Coverage

Basic coverage consists of collision coverage and comprehensive insurance. Collision damage insurance covers the costs of the opposite vehicle from an accident in which you had been at fault, as well as the damage to your vehicles. Complete insurance works similarly to regular motor vehicle insurance, covering the cost of repairs to your vehicles, up to a most worth, that is covered by something aside from a collision.

Specialized Coverage

Corporations offering commercial trucking insurance have a variety of specialised options to choose from. You need coverage for every possible state of affairs in which your truck might be involved, without rising the worth 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 injuries and damage to the property of others. Cargo insurance covers the loss or damage of the cargo, and the cost relies on the type and worth of the cargo.

Non-Trucking Coverage

Types of coverage not directly related to the transportation of cargo include bobtail insurance, non-trucking liability coverage, occupational accident coverage and coverage for personal items in the truck. Bobtail insurance applies after the truck’s load is delivered and the vehicle is traveling without cargo or a trailer, or if the owner makes use of the truck for personal use. This is much like non-trucking liability coverage, which applies when the vehicle isn’t transporting cargo, whether or not or not it is pulling a trailer. Occupational accident insurance covers the owner operator for unintentional death or dismemberment that happen in the course of truck driving.


The premiums on the insurance package you select are payable month-to-month in advance. Payments may be mixed with the truck payments if you purchase the insurance via the supplier, but this may work out to be more expensive than buying directly from an insurance company. The premiums are payable all through the policy’s life. You possibly can cancel at any time and the cancellation is not going to affect your credit score, but you may be liable for the payment of all premiums due previous to the date on which cancellation takes effect. Premiums may be higher for those who 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 report have a higher deductible, because of the risk to the insurance company. Deductibles fluctuate from $500 to $2,000, and are paid first in the event of a claim. For example, in case your deductible is $1,000 and repairs $1,500, you pay the deductible to the repair shop first and the insurer will pay the remaining $500. In the event you prefer not to face a high deductible, take a low deductible and higher premium. For corporations with experienced, accident-free drivers, a higher deductible and decrease monthly premium is a safe option.

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