Many truck drivers make mistakes when taking truck insurance because they don’t understand every aspect of it. It isn’t something you can just pay for depending on the price and finish the job. You need to understand some basics like the difference between company truck insurance and truck insurance for personal use. Moving a truck from personal insurance to commercial insurance can actually save money while increasing your liability limits significantly.
A company can make the same mistakes as well if it is just starting the business. For everything to go smoothly you need to look at every aspect for which you are paying a certain amount of money. One of many things that are important for this kind of business is truck insurance.
This is the one the major issues that cause the most uncertainty. Mainly liability is what the divided option term (DOT) requests of anyone that has the authority to transportgoods. It is 24/7 coverage for every vehicles listed on the terms unless they are owned by owner-operators. In that case, the owner-operator needs to have non-truck liability.
In brief, non-truck liability is for using commercial vehicle for personal use. Remember that liability is determined as insurance which pays other parties for damage or injury to property that you caused.
Physical damage insurance and compensation
The trucking industry is using this term, but it is something different. It is 24/7 inclusive and collision covering for stuff owned by you, same asfor your personal automobile. It is paying for repairs to your equipment due to a cover up loss such as fires, accidents or theft. Your lendersare requesting this insurance, so the loan scale can be in an event of total loss, paid off.
Occupational accident and compensation coverage are designed to protect the policyholder by paying for medical bills and disability due to an injury suffered while on the job. Some states do not recognize occupational accident and in those cases, workman’s compensation is the only alternative.
Cargo insurance and contingent cargo
A truck that carries goods whichare not belonging to them must have cargo insurance or their shippers will not let them carry their goods which make sense. The original name of the coverage is motor truck cargo, and normally pays the shipper minus that deductible for destruction to the shippers’ goods when it is under your control, care, and custody.
Contingent cargo insurance is covering for a cargo that you may broker to some other carrier and sure their insurance fails to pay for a covered loss. It doesn’t mean that everyone does brokerage, but for these that do, they should have this coverage that comes at a very small price.
Non-trucking insurance is sometimes referred as bobtails insurance, however, it isn’t the same thing. Despite the fact that bobtail covering is frequently used interchangeably with non-trucking liability coverage, technically they are two different things.
Read more about it here: https://www.investopedia.com/terms/b/bobtail-liability.asp
Bobtail insurance has protection over a truck when it operates without a trailer, no matter if it is under dispatch, and when it comes to non-trucking liability coverage, it only applies for personal use truck driving. Clear from non-trucking, bobtail will provide coverage when driving to the next job from first drop off.
How to save money
Commercial truck driving is a demanding job and there is a lot to learn. Before becoming an owner or operator it is suggested to get commercial driving experience as a company driver. Many large trucking companies offer excellent in-house training programs.
You may not know, but keeping your truck clean will more likely save your money when you are getting insurance. You should know that they always do 3 years back check for any collisions involved or damaging to the vehicle. Also, even minor violations such as failure to wear seatbelts are looked at. When it comes to major violations such as excess speed or DUIs make getting insurance very challenging.
By paying the bills on time and not overextending your credit, you build a positive credit history. More insurance companies are using credit scores in the underwriting process.Get an accurate appraisal of what your truck and trailer are really worth. When a covered loss occurs, insurance companies generally pay what is called actual cash value or retail cost minus depreciation.
Too many times customers overvalue their equipment and when a claim happens they have to settle for much less than they thought it was worth and no one ends up happy. There are many resources that can give you an accurate and fair value including websites, newsletters, and trucking publications.
How to deal with insurance adjusters
Give them a time deadline for whatever it is that you are asking them to do. If you are sending an email you should generally give them around three or so days to respond or a phone call, but when you give them a deadline they document it in their file and they put it in their calendar and will follow up with you. Especially in smaller cases where the insurance company limits are high, they may just put your fail aside, and it doesn’t become a priority, but in order to make your fail a priority, give the insurance adjuster a deadline.
Responding to them quickly is very important and it means you are ready to get the job done. It is always easier to meet up and finish what needs to be done with a person that you can call in any time. When accidents happen, you should gather down first because you don’t want to come to them emotionally.
A great tip is to organize your files before anything is done. If you have everything prepared, they will more likely do the job correctly and advise you better. Your papers are the heart of your case and that is what the insurance adjuster will later use to request settlement authority for your case. Every time you are on the phone with the insurance employee, you should take notes, it is very important to remember the details when it comes to insurance.