You Can't be a Truck Owner Operator Without This
Get Commercial Truck Insurance Coverage to Match Your Risks
If you have an entrepreneurial spirit, becoming an independent owner operator in the trucking industry is a great way to take charge of your own earning potential. The freedom that comes with being your own boss may make this move worthwhile for you. Whether you choose to remain a fully independent carrier or lease your truck and services to another carrier, you can discover an exciting future.
Of course, owning your own rig comes at a significant expense, so having sufficient insurance to fully cover your investment is critical.
While it is clear that this is a lucrative field to be in, you also have to think about how to protect your assets if an accident or theft were to happen. This is why considering the purchase of specialized owner operator insurance is a great idea – you know your finances are secure when the unexpected occurs.
Is Commercial Truck Owner Operator Insurance Required?
Whether you own a tractor-trailer, a semi-truck, or a fleet of commercial trucks, as an independent operator you are required by federal law to carry a minimum of $750,000 in liability insurance. Because an accident in a tractor-trailer has the potential to create a large amount of damage, many financial advisors recommend purchasing as much as $5 million in liability coverage. Not having enough can lead to financial ruin following a major collision.
If you are leasing your truck out to another trucker, that driver is responsible for providing liability insurance coverage. However, if the lessee does not carry an adequate amount of insurance, you may want to purchase your own coverage independently to insure against the risk of excessive liability. To decide if this option is in your best interest, consult our specialist for advice.
Other Coverage Available to Owner Operator Truckers
In addition to the liability insurance required by law, you may be asked to consider some, or all, of the following optional coverage options. Understanding your options will help you choose the right coverage for your needs and concerns.
For more information about the many owner operator insurance policy options, you can speak with us to help you determine what coverages are most important to you.
Is Owner Operator Insurance Expensive?
The price of your policy can vary greatly depending on your particular situation. Some factors that influence your rates include your age, the age and condition of your truck and equipment, the types of cargo you carry, the routes you drive, and of course the insurance company you choose. It is a good idea to compare at least two or three different insurance quotes when shopping for a policy, as the rates can vary considerably.
You can further lower your premiums by electing higher deductibles and by taking advantage of deals and discounts offered by insurance companies. Most companies, for example, will offer discount rates to their customers who combine multiple policies and who maintain a clean driving record. Be sure to ask about available discounts when you are evaluating quotes.
Comparison Shopping Can Give You an Advantage
Comparison shopping for owner operator commercial truck insurance is a smart idea, and can help you save big money in the end. Each insurance company will require you to submit several pieces of personal information before they can provide you with a quote, and you may receive phone calls from sales representatives, but this process can help you find the insurance you need.
Come prepared with questions to ask, and understand the details that your policy needs to have in order to protect you completely. For help with this, you may want to talk to:
When you find the right commercial truck owner operator policy, you can get peace of mind that your business can succeed no matter what comes your way.
Why 3,179 Semi Truck Drivers Need Extra Coverage
Semi-trucks have revolutionized the transportation industry. These large vehicles make it possible for businesses to quickly and cheaply transport goods within the U.S. Unfortunately, driving a freightliner can be risky, not only to the drivers or owner/operators, but also to other drivers of passenger cars. In 2009, there were 3,179 fatal accidents involving large trucks - including semi-trucks and buses. This lead to 529 deaths and damage to 3,436 vehicles. There are serious liability risks and costs involved in tractor-trailer accidents closely linked to their size.
Freightliners provide a necessary service to thousands of businesses across the United States, and owners of these large trucks have great earning potential. Of course, operating large commercial trucks comes with risks, and proper truck insurance coverage is critical to protect your investment and cover costs for injuries or damage if you, or drivers you hire, are involved in an accident.
What Is Big Rig Truck Insurance?
Accidents involving big-rigs can be very destructive and lead to costly property damage and personal injury lawsuits. Trucking insurance can provide a financial safety-net in the unfortunate event that your rig is involved in a collision.
Owners of tractor trailers have several coverage requirements and need specialized insurance. There are basic policies that start with the commercial truck liability coverage you are required to carry by law, and you will have the option to add additional coverage choices and amounts to help you more fully address your risks.
What Coverage Is Included in a Truckers Insurance Policy?
All commercial trucks must be covered with liability insurance. Liability insurance covers injuries and property damage caused to others in an accident that you or your drivers cause. Liability minimums are mandated by law in each state, but truckers who frequently cross state lines will need to meet federally mandated minimums as well.
The liability minimums for big truck insurance are dependent on the weight class of your truck and the types of materials that are being hauled. For example, a Class A semi-truck weighing 10,000 pounds and hauling hazardous materials will require a minimum of coverage requirement of $1 million while a truck weighing under 10,000 pounds and carrying general commodities will need minimum liability coverage of $300,000. Trucks carrying explosives require a minimum of $5 million in liability coverage, regardless of weight.
Is Semi Truck Insurance Expensive?
The cost of your trucking insurance policy is dependent on several factors. Things that can affect costs include:
To get the right amount of coverage for your needs and avoid overpaying for coverage you don’t need, be sure to sit down with a knowledgeable agent who can make sure your policy is customized to you.
Find the Best Trucking Insurance Policy for Your Semi Rig
Purchasing truckers insurance for the first time can be daunting. With so many coverage options, you may wonder if you have purchased enough coverage, or have overpaid by purchasing unnecessary coverage. Luckily, there are resources you can use for help.