How To Know If You Need Commercial Truck Insurance

Trucking insurance is a must for professional truck drivers who are owner-operators as well as companies that operate fleets of trucks. The better you understand the ins and outs of commercial truck insurance, the wiser choices you can make when purchasing trucking insurance to protect your business and your livelihood.

What Are Deductibles and Why Are They So Important?

Trucking insurance companies view deductibles as your commitment to safe driving practices. The higher the deductible, the more risk you take on should accidents occur. Most insurance companies will reward companies and drivers with lower premiums if they elect higher deductibles. In other words, you can dramatically change your annual insurance costs by increasing your deductibles and assuming more financial responsibility when accidents occur. Lower deductibles mean less financial risk per accident for your business but higher insurance rates.

Liability Coverage Is Not a One-Size Proposition

Liability trucking insurance is often highly misunderstood. Many truckers think they only need one general liability insurance policy and an umbrella policy to cover overages. That simply isn't the case. Depending on the types of cargo you carry, the number of miles you travel, and countless other details, you may find yourself in need of many different liability policies, including the following:

• Bobtail liability insurance
• Environmental liability insurance
• General liability insurance
• Hazardous materials liability insurance
• Medical payments insurance
• Motor truck cargo insurance
• Non-trucking liability insurance
• Physical damage insurance
• Primary liability insurance

Trucking insurance, especially when it comes to liability, covers a lot of ground. That means you must work with a professional insurance agency that specializes in commercial truck insurance to make sure you're getting the liability protection your specific business requires.

Saving Money on Trucking Insurance

No one wants to pay more than is necessary for insurance protection. While trucking insurance is essential, that doesn't mean you can't make choices that will save you money on the costs of coverage. However, one important factor of commercial truck insurance is risk management. You want to make sure that the choices you make to reduce monthly costs do not create larger financial risks for your organization. Some options to consider, depending on your insurance company, include the following:

• Installing GPS tracking on all trucks in your fleet
• Allow the insurance company to monitor driver activities
• Create business policies that promote safer driving
• Keep fleet vehicles in a good state of repair to avoid unnecessary mechanical accidents

Working with a trusted agency is the first step you want to take when buying trucking insurance. This will help you get the right coverage at the right price to meet your budget while offering the essential protection your business needs.