Insurance

Best Insurance Choices for New Commercial Truck Drivers

Multiple insurance companies offer commercial truck insurance policies, and their terms vary based on several factors. Identifying the best trucking insurance provider from the many options available can be challenging if you’re a new commercial truck driver.

To make things easier for you, we’ve curated a list of the best insurance choices for new truck drivers you should consider.

We weighed how well each company meets the insurance needs of new commercial truck drivers in terms of coverage types, policy customization options, pricing, state and federal filings, customer service, and more.

Commercial Truck Insurance For New Drivers

Tailoring commercial truck insurance is crucial for new drivers. Company truck drivers may not need coverage for equipment breakdown, while lease owner-operators must scrutinize agreements for additional required coverage.

Owner-operators under their authority should ensure comprehensive coverage for their vehicle and cargo to support commercial operations.

General Requirements for New Drivers

Both federal and state laws provide specific guidelines that truck drivers must meet to prove they have sufficient coverage to protect their commercial vehicles if an accident occurs.

These laws vary from state to state, but there are a few general requirements your trucking insurance policy must have, including:

Primary Liability Insurance

Primary liability insurance is the minimum auto liability coverage mandated for owner-operators. It provides compensation for bodily injury and physical damage in at-fault accidents.

The Federal Motor Carrier Safety Administration (FMCSA) has specific filing requirements for commercial truck drivers, and states set minimum insurance limits for compensation. Check your state’s requirements before purchasing to determine your commercial truck insurance cost.

Physical Damage Coverage

Physical damage insurance protects commercial vehicles against several risks while on the road. These risks include collisions, theft, vandalism, physical damage due to harsh weather, and more.

You can purchase physical damage liability insurance in two ways:

As collision coverage to cover your truck after crashes
As comprehensive coverage to protect your truck against all collision and non-collision losses, including fires, theft, vandalism, bad weather, you name it.

General Liability Insurance

General liability insurance covers bodily injuries and physical damages involving your trucking business but unrelated to driving your truck. It covers incidents from your day-to-day commercial operations, like loading delivery errors and slip-and-fall accidents.

Non-trucking Liability Coverage

Non-trucking liability insurance covers you when driving your truck for non-business purposes.

Motor Truck Cargo Insurance

Motor truck cargo insurance is vital for freight transportation, particularly hazardous cargo. Coverage requirements vary by state; in Mississippi, which has affordable commercial truck insurance, hazmat transporters need a minimum of $5M, while household goods movers require $300,000.

In addition to the general requirements above, new drivers can benefit from several optional insurance coverage options. Some include rental reimbursement, medical payments, and trailer interchange insurance. Check out our comprehensive guide on commercial vehicle insurance to learn more about this.

Best 5 Commercial Truck Insurance Providers for New Drivers

The best commercial truck insurance companies for new drivers have several features. They meet state insurance liability requirements for different commercial vehicles, offer discounts to help you save on monthly premiums, provide assistance in filing several federal and state paperwork, and have stellar customer service.

With this in mind, here are the top 5 commercial trucking insurance carriers to consider if you’re a new driver:

1. Progressive Commercial Insurance Company

Progressive Insurance, with a solid nationwide reputation, provides comprehensive commercial truck insurance for various vehicles, including optional coverage like garage keepers liability and roadside assistance.

The company handles insurance needs, from filing documents to assisting with liability claims.

Note, however, that primary liability coverage is restricted in Hawaii, Louisiana, Alaska, and New York for owner-operators with an operating radius over 500 miles.

You must also liaise with an agent to purchase coverage, even though the website provides detailed info about the company’s policy offerings.

Pros

Being one of the largest and oldest insurance companies, progressive offers competitive pricing for new and experienced drivers.
Offers several discounts to reduce monthly payments, including discounts for using electronic logging gadgets and bundling multiple coverage types
Offer free online insurance quotes.

Cons

Some coverage options are limited to the driver’s operating radius.
New drivers may not qualify for some discounts.

2. Nationwide Insurance Company

Nationwide is another highly-ranked commercial truck insurance company that offers several coverage options. On top of all essential coverage, Nationwide provides specialty coverage options for specific types of motor truck cargo and trucks not offered by most competitors. The company also has specialized pricing for new drivers, plus discounts for using anti-theft devices.

Pros

Excellent customer service
Affordable specialty coverage that most competitors don’t provide
Online quotes are available
Tailored pricing for new drivers and discounts

Cons

You can only purchase insurance through a local agent
Coverage has higher monthly premiums than other insurance carriers
It’s not available in some states.

3. Sentry Insurance

Unlike Progressive and Nationwide insurance carriers, Sentry specializes in commercial trucking coverage. The company only caters to the commercial insurance needs of truckers. It has in-house insurance claim adjusters who are trucking specialists.

Pros

Excellent customer service team with professional experts on commercial truck insurance coverage
Offers flexible coverage for new and experienced drivers
Available in all states
They have a user-friendly online portal for making monthly payments and filing claims

Cons

Services are available through local agents only
They don’t offer online quotes.

4. Lancer Insurance

Lancer Insurance Company is highly sought after for its customer-centric approach. With a team of independent agents, it connects trucking companies and owner-operators with tailored commercial truck insurance.

The company’s call center operates 24/7, offering around-the-clock claims reporting and coverage maintenance. Additionally, they provide free towing for damaged trucks after covered accidents through their commercial auto and garage system.

Pros

Responsive customer service with a 24/7 call center
Handles claims in-house
Free towing if you get involved in an accident covered in your policy

Cons

Although licensed nationwide, not all coverage options are available in each state.

5. Evolution Insurance Brokers

Evolution Insurance offers commercial truck insurance to high-risk entities. By high risk, we mean owner-operators who haul hazardous cargo, those with poor driving records, and those with previous criminal or other legal records. The company is well-versed in the trucking industry and can advise on the best specialized high-risk coverage options for such trucking businesses.

Pros

Offers a range of specialized trucking insurance options that meet the needs of various short and long-haul trucking businesses.
It has an easy-to-use mobile app for fast claims reporting and more.

Cons

Average pricing on coverage is higher compared to most competitors

What Commercial Truck Insurance Does Not Cover

Most commercial truck insurance providers have a list of commercial truck operations and items they don’t cover. These exclusions differ per insurer. It’s advisable to confirm whether an insurance company has any exclusions before signing up with them. A few of these may be:

Intentional damage – commercial insurance companies don’t cover injuries or damages as a result of deliberate harm to third parties or their property
Personal property of drivers
Business property in the vehicle involved in a covered accident

Final Thoughts

When choosing the best commercial truck insurance, consider your current and future business needs. You want to purchase a policy that fits your business like a glove and offers enough room to expand your business operations.

All the insurance choices on our list provide the necessary commercial insurance new drivers need, and their customer service is supportive.

When comparing quotes from multiple insurers, there are several critical features you need to look for. Check out our detailed guide on everything you need to know about commercial truck insurance for small businesses for more on this.

You can also visit our blog to learn more about commercial insurance, including how much trucking insurance costs.

Insuring Your Commercial Vehicle for Personal Use

Using a commercial vehicle for personal reasons is quite common among business owners. However, it’s essential to realize that your insurance may not cover such usage.

If you’re driving your commercial vehicle for personal errands or even heading home after work, you might not have the right insurance coverage.

To ensure you’re adequately protected in these situations, follow these steps when using your commercial vehicle for personal purposes.

Understand Your Insurance Policy

Start by reviewing your current commercial vehicle insurance policy.

It’s vital to know what is covered and any limitations on personal use. Some commercial policies may have restrictions or exclusions for personal use.

If you need help understanding each point in your commercial auto insurance policy, then reach out to your insurance provider to explain it to you. You must take time to understand all the technicalities of your policy, as this will allow you to make a more informed decision.

Contact Your Insurance Provider

Once you know exactly what your commercial vehicle insurance covers, it’s time to discuss your policy with your broker.

Contact your insurance company or agent to discuss your intentions to use the commercial vehicle for personal use. They can advise you on how to proceed and what changes may be necessary.

After checking your policy, your insurance company or agent will offer valuable insights on the best way to switch to personal auto insurance coverage. Make sure you hear them out before making any moves.

Add Endorsements or Coverage

Transitioning from commercial vehicle insurance to personal use insurance can often be a relatively simple process. Nevertheless, it’s essential to ensure that your policy adequately covers your needs.

Depending on your insurance provider and the nature of your commercial vehicle, you might be required to incorporate particular endorsements or coverage options into your policy to guarantee comprehensive coverage for personal use. This could include:

Non-Owned Vehicle Coverage: This extends your policy to cover non-owned vehicles, like your personal car, when you use them for business purposes. It can also be useful for personal use of commercial vehicles.
Personal Use Endorsement: Some insurance companies offer this endorsement, which explicitly allows for personal use of a commercial vehicle. It can help bridge the gap between private and commercial insurance.

Of course, different commercial auto insurance providers have different rules and coverage limits when you insure your commercial vehicle for personal use. Added endorsement or coverage depends on the provider you’re using and what your specific policy covers.

Discuss Usage Patterns

When taking out a commercial auto insurance policy covering personal use, you must establish exactly what kind of personal use you’ll get out of the vehicle.

Be honest with your insurance provider about how often and for what purposes you’ll use the commercial vehicle for personal use. This will help them determine the appropriate coverage and premiums.

It’s important not to lie here in an attempt to save on costs. By being honest, you’ll ensure your vehicle is adequately covered for all scenarios.

Consider Liability Limits

When taking out auto insurance coverage, one of the most important considerations is your liability limit.

Ensure that the liability limits on your policy are sufficient for both personal and business use. If you’re using the vehicle for personal use, it’s essential to have adequate coverage in case of an accident.

Chances are, business vehicles require greater coverage compared to a personal car insurance policy. So, make sure that your coverage is sufficient for the driving you plan to do.

Pay Attention to Premiums

Of course, one of the most important considerations for any commercial or personal auto insurance policy is the premiums.

Adding personal use coverage to your commercial policy may affect your premiums. Discuss any potential cost increases with your insurance provider.

While affordable insurance is always attractive, it’s also important to note that cheap insurance policies aren’t always worth it. It’s a good idea to compare different commercial insurance options and see how high the premiums are for various insurance coverage solutions. This will help you choose the best value policy that provides enough coverage.

Maintain Accurate Records

Insuring a commercial vehicle for personal use can get confusing – especially if different rules apply to your commercial auto policy and personal auto coverage. This is why it’s so essential to document all of your driving carefully.

Keep detailed records of how you use the vehicle, including dates, times, and purposes. This documentation can be helpful if you need to file a claim or prove that you were using the vehicle for personal use.

This information is also helpful if you want to renew your insurance policy, as you’ll have a more detailed and realistic overview of how you use the vehicle for business and personal use.

Drive Safely

Regardless of the use of your vehicle, it’s essential to drive safely and follow traffic laws to avoid accidents and insurance issues.

Make sure you understand the leading causes of commercial truck accidents and pay attention to any of these potential issues arising. By being alert, you’ll be able to drive safer – which is vital for your commercial and personal insurance.

Many insurance providers offer incentives for safer drivers – something that can help you secure lower insurance premiums. So, whether you’re using your vehicle for personal or commercial use, driving safely is essential.

Conclusion

Remember that the process of insuring a commercial vehicle for personal use may vary depending on your location, the insurance company, and the specific vehicle. To ensure you have the right coverage, always consult with your insurance provider and ask them to clarify any questions or concerns you may have.

Looking to purchase a new commercial vehicle? Then speak to us at Mission Financial Services, where we can help you secure easy vehicle financing.

Semi Truck Accident (What To Do)

There are roughly 388,000 semi-truck accidents each year in the US.

Semi-truck accidents are the last thing you want to experience as a professional truck driver. However, you can’t always avoid them.

You need to know how to deal with an accident swiftly and professionally. If you ever find yourself in a truck accident, make sure you follow these steps.

How To Handle a Semi-Truck Accident

1. Ensure Safety First

First and foremost, check yourself and others involved in the accident for injuries. Call 911 immediately if anyone is seriously injured.

While there’s a lot to do after a commercial truck accident, the first priority should always be making sure everyone is safe.

Even if the accident seemed minor and no real injuries seem present, you should still consider seeing a doctor after the incident just to make sure you’re safe. In many cases, injuries after an accident won’t show themselves immediately.

Once you’ve assessed the damage and have made any necessary calls to medics and emergency services, it’s time to start clearing the accident and gathering the necessary information for insurance companies.

2. Check Your Cargo

Semi-trucks could haul just about anything. After a semi-truck accident, you’ll want to make sure that your cargo is safe before moving the vehicle. In many cases, cargo can come loose, causing an even greater accident when you try to move the truck.

Of course, if you’re hauling dangerous cargo or if you crashed a tanker truck, then you’ll need to alert emergency services about this. Certain cargo could result in greater dangers, like the risk of fires or explosions, after the crash.

Once all people involved in the truck accident have been accounted for, and the cargo has been safely dealt with, then the next steps are all about dealing with the aftermath of the crash.

3. Move to a Safe Location

This might not always be possible, as vehicles are often damaged beyond use in truck accidents. But, if it’s safe to do so, move your vehicle(s) out of the flow of traffic to prevent further accidents or hazards.

If your truck is obstructing the road, try to just pull over to the side. You do not want to drive away or get too far from the accident scene, but you should try to clear up the road and any traffic if it’s possible.

If you are not able to clear any vehicles, make sure that local traffic services have been alerted so that they can redirect traffic.

4. Call the Police

Now that the immediate safety actions are out of the way, you’ll need to notify local police services about the accident.

Report the accident to the police, even if it seems minor. A police report can be crucial for insurance claims and legal purposes. As mentioned above, you might also need the police to help clear the road.

Even if you don’t think it’s necessary at the moment, having an official police report of the incident will make dealing with the semi-truck accident far easier.

5. Exchange Information With the Driver

Now that the immediate actions after the semi-truck accident have been taken care of, it’s time to start gathering evidence of the event. The first step here is to exchange contact details with the owner of the other vehicle involved.

Exchange contact and insurance information with any other involved parties. Be sure to collect their:

Name, address, and phone number
Driver’s license number
License plate number
Insurance information

This information is essential for making your insurance claim or helping you negotiate a settlement with the driver.

When doing this, try your best not to get emotional or into an argument with the driver. Simply gather as many details as you can and start processing the post-accident activities.

6. Document the Scene

You’ll need to have a clear picture of the accident scene with as much relevant evidence as possible. The more you can document the accident scene, the easier it will be to make an insurance claim and potentially offer evidence against the other driver.

Take photos of the accident scene, vehicle damage, road conditions, and any relevant road signs or signals. This can be valuable evidence later. Always try to gather photo or video evidence first.

Accidents can happen very fast and the small details are often forgotten. So, before leaving the scene of the accident, ensure you recollect exactly what happened. It could be worth writing this down straight away so that you have a consistent and accurate story about how the accident took place.

7. Identify Witnesses

This isn’t always possible, but if there are witnesses to the accident, collect their contact information. They may be able to provide statements to support your case. They could also help supply you with a more accurate account of how the accident happened.

Simply gather their contact details and their perspective on the accident. The more accounts and evidence you have around the accident, the easier your claims process will be.

8. Get Your Truck Safely Removed From the Site

One of the most important parts of dealing with a truck accident is clearing the site of the accident.

This is much easier to do for regular cars, as tow trucks can simply pull them away. However, with a semi-truck, this gets more complicated.

Even if you think your truck is in good condition, it’s important that you thoroughly inspect it before driving away. A small issue with the truck could turn out to be a far bigger problem later on if you keep driving with it.

So, if you’re unsure about the state of your vehicle, then it would be best to have the truck professionally towed to a mechanic. They can give the semi-truck a detailed inspection before letting you drive off again with it.

You’ll also need to have the truck assessed by a recognized mechanic in order for you to get a cost of damage quote to show the insurance company.

Remember, your semi-truck is an incredibly valuable and important part of your trucking business. Spending a bit extra to have it carefully towed and assessed can end up saving you money in the long run.

9. Seek Medical Attention

If you’ve just been involved in a semi-truck accident, then you’ll want to seek medical attention.

Even if you don’t feel seriously injured, it’s advisable to seek medical attention. Some injuries may not be immediately apparent, and a medical evaluation can document your condition.

And if you do have any medical issues that resulted from the accident, you’ll need to have a proper doctor’s account of your condition if you’re going to make any kind of medical claims.

10. Notify Your Insurance Company

Most of the hard work of “cleaning up” the accident is now behind you. However, one of the biggest steps in dealing with an accident is contacting your insurance provider and making an insurance claim.

Report the accident to your insurance company as soon as possible. The sooner they hear about the accident, the faster and easier your claims process will be.

Provide them with all the information you collected at the scene of the accident, including the pictures, witness statements, and your own account of the accident.

This is why it’s so important that you understand your commercial truck insurance broker’s claims process early on, as this will help you make swift and efficient claims if and when you need to.

11. Avoid Discussing Fault

Do not admit fault or apologize for the accident, even if you believe you may have contributed to it. Fault can be determined by a thorough investigation.

You can leave issues like this up to attorneys – it’s not something you should argue over.

12. Consult an Attorney

If you’re injured or if the accident involves complex legal issues, consider consulting an attorney who specializes in personal injury or accident cases. Finding the right attorney for commercial truck accidents is an important step for anyone who runs a trucking business, as they will help to make any disputes or claims a far easier process.

13. Preserve Evidence

Make sure that you keep all documents related to the accident, including medical records, repair estimates, and correspondence with insurance companies and legal counsel. You will need these documents for any claims or legal proceedings, and you never know when they might be requested.

14. Follow Through

Cooperate with law enforcement, your insurance company, and any legal representatives you hire.

Stay informed about the progress of your case and make sure you know what’s going on, but remember to be patient too. Unfortunately, delays with a semi-truck accident can take time.

Conclusion

While semi-truck accidents can’t always be avoided, the way you deal with them determines how quickly you’ll be able to get past the accident and back on the road. Following the steps above should help you achieve this.

If you need to replace your semi-truck after an accident, then you’ll need to find the right funding. Get in touch with us at Mission Financial to see just how easy accessing semi-truck financing can be.

Commercial Dump Truck Insurance: What To Know

Unlike most commercial vehicles, dump trucks operate off the road and in construction zones. Because of this, their unique design, and massive size – they require a specific type of commercial auto insurance known as dump truck insurance coverage.

The best dump truck insurance policy can protect your trucking business from losses when your truck is on the road and at work on various sites.

Whether you’re the owner-operator of one dump truck or a manager of several, here’s everything you need to know about dump truck insurance to secure your business and thrive.

What Is Commercial Dump Truck Insurance?

Commercial dump truck insurance is a legal agreement between a dump truck business owner and an insurance company.

The agreement covers vehicles that transport dirt, sand, asphalt, rock, gravel, and other loose materials required in road work, quarries, building construction sites, and many other locations.

Often, the vehicles covered are heavy-duty vehicles with a back part or bed that tilts sideways or backward to dump the loose material.

Some types of dump trucks include:

Standard tandem dump trucks
Transfer dump trucks
Side dump trucks
End dump trucks
Super dump trucks
Semi-trailer bottom dump trucks

With a dump truck insurance policy, you don’t have to worry about the risks associated with running your dump truck business. The policy eases the financial burden of dealing with accidents involving your trucks and other unforeseen events related to your business operations.

Like most commercial truck insurance, dump truck insurance coverage works on a risk-sharing principle. As the policyholder, you pay your insurance company a reasonable monthly or annual premium. In exchange, the company takes financial responsibility for various liabilities or damages, including

Paying for the medical treatment of victims if your insured vehicle gets involved in an accident.
Providing compensation for property damage as a result of the accident.
Covering losses due to unexpected events like fire, theft, vandalism, and bad weather.
Paying settlement claims and legal costs for lawsuits you may face after an accident.

Some dump truck insurance policies also offer workers compensation for dump truck operators, such as drivers and mechanics. It all depends on the dump truck insurance coverage options you go for (more about this below).

Who Needs Dump Truck Commercial Auto Insurance?

is necessary for all businesses that rely on dump trucks to operate. These include motor carriers who employ dump truck operators and owner-operators in various industries such as construction, landscaping, waste disposal, and mining.

What Does Dump Truck Insurance Cover?

Trucking insurance coverage differs from one insurance provider to another. However, most dump truck insurance policies offer standard categories of coverage:

1. Liability Coverage

Liability coverage compensates third parties for any injuries or property damage after an accident where you are the at-fault party. There are two main types of dump truck liability insurance coverage: primary and general coverage.

Primary Liability Coverage

Primary liability insurance is mandatory coverage required by state law. It offers two types of trucking insurance as a package: Bodily injury and property damage liability.

Dump truck businesses whose operations cross state lines must have their insurance provider file their liability insurance with FMCSA. In standard terms, this is known as BMC-91X filing or federal liability filing. Here’s a quick overview of insuring filing requirements to help you understand more about these compulsory state filings.

General Liability Insurance Coverage

Although optional, motor carrier general liability insurance is critical because dump truck businesses are generally high-risk. This coverage pays for bodily injuries and damages involving your business, but unrelated to your trucks. Examples of situations covered under this coverage option include slip and fall accidents on your business premises.

2. Physical Damage Coverage

Physical damage coverage protects your commercial vehicle against damages from collisions and other unpredictable circumstances like bad weather. It’s offered in two forms, collision and comprehensive insurance coverage.

3. Workers Compensation

Workers’ compensation insurance covers employees for work-related injuries. It’s essential if you use your trucks for construction purposes and employ several dump truck operators. Your employees may get cuts, burns, back pains, and other repetitive motion injuries from handling heavy machinery daily.

4. Additional Coverage

Besides liability, physical damage, and workers’ compensation coverage, some insurance companies offer specialty insurance coverage for more protection in various situations.

A few additional coverage options truckers find useful include truck rental reimbursement, downtime coverage, roadside assistance coverage, and GAP protection. Check out the add-on coverage options offered by Mission Financial Services to learn more about this.

How Much Does Dump Truck Insurance Cost?

On average, expect to pay approximately $4,000 to $14,000 per year per truck to insure your dump trucking business. This cost might be lower or higher, depending on several factors. Some of these include:

Credit history: Trucking businesses with a good credit history qualify for affordable dump truck insurance rates.
Driving records: Owner-operator truckers with clean driving records often pay less to insure their trucks.
Usage: A trucking company using dump trucks for construction purposes will likely pay more than another using dump trucks for waste disposal because of the risk involved in their operations.
Coverage options: Each type of coverage has its cost. The more coverage options added to an insurance policy, the higher the premium.
The type and number of dump trucks insured: This affects the insurance rates offered and the premiums you’ll pay.

You may also want to check for any further discounts to reduce your dump truck insurance cost. Or, see if usage-based insurance can work for your type of business. It’s relatively more affordable than most trucking insurance packages.

Final Thoughts

Dump truck commercial auto insurance is a long-term investment. It minimizes financial losses and can help you maintain a steady cash flow so your business flourishes.

When looking for dump truck insurance, focus on finding coverage that will help you meet FMCSA’s mandatory coverage requirements. Large construction companies and quarries often require a high primary liability limit ($1M or more).

Make sure to apply for adequate coverage, especially if you’re a single dump truck owner-operator. For more information about the best coverage for truckers, check out our blog.

You can also reach out to us if you have any questions. We’re always ready to help!

What to Look for in Commercial Truck Cargo Insurance

The right commercial truck cargo insurance policy is essential for many truck drivers. These policies ensure any cargo you carry is covered in the event of an accident or theft – something that could otherwise cost trucking companies a great deal.

When searching for commercial truck cargo insurance, finding coverage that adequately protects your business and cargo is crucial. With so many different commercial truck insurance brokers out there, finding the best solution can be tricky.

To help you out, here are some of the top considerations to make when looking for commercial truck cargo insurance.

Coverage Types

Motor truck cargo insurance can include various types of coverage and policies. Each insurance provider will have their coverage options. The one you choose depends on what kind of trucking business you operate and how extensive your truck cargo coverage needs to be.

There are two main coverage options for motor truck cargo insurance. These are:

Basic Cargo Coverage: Where your truck’s cargo is covered for the most common scenarios. Ensure the policy covers cargo loss or damage during transit. This is the core component of cargo insurance. These policies are the most affordable.
Additional Coverages: This gives you greater cargo coverage to help you stay protected in a broader range of scenarios. Look for options like theft, fire, vandalism, and spoilage coverage, depending on the nature of your cargo.
Look for options like theft, fire, vandalism, and spoilage coverage, depending on the nature of your cargo.

The best commercial truck insurance carriers should offer flexible coverage options to help you find a policy that perfectly aligns with your trucking business.

Coverage Limits

Motor truck cargo insurance can have some very strict coverage limits.

The greater your insurance premiums are, the more your coverage limit will be. Ultimately, the coverage limit you choose should make sense for the type of cargo you’re carrying, the nature of your trucking business, and how risky your routes are.

When looking into this, determine the maximum coverage amount per shipment. It should be sufficient to cover the total value of your cargo. Getting this right will help you choose an insurance company that offers adequate cargo coverage.

Verify if there are sub-limits for specific types of cargo, such as hazardous materials. This could impact how much coverage you have available.

Deductibles

Motor carriers need a clear idea of how deductibles work in their insurance policies, which is significant in how premiums are structured.

Understand the deductible amount you’ll be responsible for in case of a claim. Higher deductibles often mean lower premiums. This is usually something you can negotiate with your insurance agent.

Consider your financial capacity to handle deductibles when choosing a policy.

Premium Costs

Of course, a significant factor when choosing motor truck cargo insurance is the cost of the premiums.

Compare premiums from multiple insurers to find a competitive rate. Be cautious of excessively low premiums, which may indicate insufficient coverage or hidden costs. Always understand what your premiums cover and how the pricing has been calculated.

Cargo Types

Not all cargo insurance plans cover the same cargo. So, ensure the insurance policy covers the specific types of cargo you transport. Some policies may exclude certain goods.

If you carry specialized or high-value cargo, verify that it’s adequately covered. The cargo coverage should also align with the type of trucking business you operate. For example, for-hire truckers, passenger vans, freight forwarders, auto haulers, and box trucks may all require different cargo insurance options.

Geographic Coverage

If your trucking business operates across different states and countries, you’ll need to make sure your cargo insurance always offers enough coverage.

Confirm that the insurance policy covers your trucks’ regions and routes. The last thing you want is damaged cargo in an area that your insurance provider doesn’t cover.

Carrier Liability

Understand how the cargo insurance complements your carrier liability coverage. Cargo insurance often covers more than carrier liability alone.

Always determine how the two policies interact in case of a claim.

Claim Process

An essential part of choosing motor truck cargo insurance is understanding the claims process.

Familiarize yourself with the claims process, including reporting requirements, documentation, and timeframes. Choose an insurer with a reputation for efficient and fair claims processing.

Reputation and Financial Stability

Always research the insurer’s reputation and financial stability through customer reviews and ratings. A financially stable insurer is more likely to fulfill its obligations in case of a claim.

Bad reviews could signal motor carriers to avoid the insurance company.

Policy Exclusions and Conditions

Carefully read and understand the policy’s exclusions and conditions to avoid surprises during a claim. You might need to extend coverage options if the policy does not offer enough.

Seek clarification from the insurer on any ambiguous terms or clauses. If you aren’t fully aware of what the policy covers, then it’s not a good idea to sign into the insurance policy.

Customization Options

It’s always best to look for insurers that offer customizable policies to tailor coverage to your specific needs. Flexibility can help you adapt your coverage as your business grows or changes.

There’s a good chance your cargo coverage requirements will change over time. Truck drivers may suddenly start hauling high-value freight, which could require a policy change. Working with a flexible insurance provider will help you stay adequately covered.

Conclusion

Before finalizing your choice, consult with insurance professionals or brokers specializing in commercial truck cargo insurance. They can help you navigate the complexities of insurance policies and ensure you get the coverage that best suits your business’s needs. Take your time to find the right policy, as this is a crucial step in setting up your trucking business.

If you’re purchasing a new semi-truck, you’ll need to find the best possible deal for truck financing. Get in touch with us at Mission Financial, where we can help you secure funding for your ideal truck – even if you have a bad credit history.

High-Risk Commercial Truck Insurance Options

Getting proper commercial insurance coverage is one of the most essential steps in starting a trucking business. The trouble is that many truck drivers struggle to get good coverage due to having high-risk profiles.

If you fall into the high-risk category, don’t worry. You can still take various options to secure the right insurance coverage for your business. We’ll explore some of these options below.

What is High-Risk Commercial Truck Insurance?

High-risk commercial truck insurance is a type of insurance specifically designed for trucking companies or owner-operators who are considered to have a higher risk of accidents or insurance claims than the average in the industry.

This type of insurance is necessary because the nature of the trucking business, with large and heavy vehicles on the road, poses inherent risks.

Here are some of the main factors that contribute to giving truck drivers a high-risk status:

Driving History: Trucking companies or drivers with a history of accidents, traffic violations, or other driving-related issues may be considered high-risk.

Cargo: Transporting hazardous materials, highly valuable cargo, or other specialized freight can increase the risk associated with the operation and may require specialized coverage.

Operating in High-Risk Areas: Trucking in regions with challenging road conditions, severe weather, or high traffic congestion can increase the likelihood of accidents and insurance claims.

New Ventures: New trucking businesses without a proven track record may be categorized as high-risk until they establish a history of safe operations.

High Mileage: Companies or drivers covering a significant number of miles each year may face higher risks simply due to the increased exposure to potential accidents.

Vehicle Size and Type: Larger and heavier trucks pose a greater risk on the road, and their insurance costs can reflect that increased risk.

High-risk commercial truck insurance is tailored to address these elevated risks. It typically offers liability coverage (damage to others), physical damage to the truck and cargo, medical payments, and other potential liabilities arising from commercial truck accidents or incidents.

Premiums for high-risk truck insurance are often higher than for standard policies because insurers must account for the increased likelihood of claims.

High-Risk Commercial Truck Insurance Options

Getting the right high-risk commercial truck insurance policy can be tricky. Many insurers are wary of dealing with high-risk candidates. However, various high-risk insurance companies do exist and they offer various solutions to match the needs of drivers and trucking businesses.

Here are some high-risk insurance options to consider:

Specialized High-Risk Insurers

Some insurance companies specialize in providing coverage for high-risk commercial trucking operations. These insurers may be more willing to work with businesses or drivers with a history of accidents or violations.

Many well-known insurance providers offer specialized high-risk policies to ensure they can offer coverage to all truck drivers.

Non-standard Insurance Providers

Non-standard insurance providers are another option for high-risk trucking. They cater to drivers or companies with a challenging risk profile.

While premiums may be higher, they can offer coverage when traditional insurers decline. These policies are often best for high-risk candidates who want to ensure they still get maximum coverage.

Assigned Risk Pools

Some states have assigned risk pools or state-run insurance programs for high-risk commercial trucking.

These programs are designed to ensure that every trucking company has access to insurance coverage, even if they are deemed high-risk. If you’re a high-risk truck driver, then be sure to check to see if assigned risk pools are available in your state.

Increased Deductibles

Consider opting for higher deductibles on your policy. While this means you’ll pay more out of pocket in the event of a claim, it can help lower your premium costs.

This is not necessarily a high-risk insurance policy type. Still, it is an option for candidates with a more significant risk profile. Commercial trucking insurance companies will often be more willing to take on higher-risk candidates if they’re happy with increased deductibles.

Risk Management

Maybe you’re struggling to find an insurance provider willing to take you on. While you can’t necessarily reduce your risk profile or history, you can actively work on making yourself more appealing to insurers.

Implementing a robust risk management program can demonstrate to insurers that you are actively working to reduce risk. This may include driver safety training, regular vehicle maintenance, and other safety measures.

Cargo Insurance

If your high-risk status is related to the type of cargo you transport (e.g., hazardous materials), consider purchasing specialized cargo insurance to cover potential losses or accidents involving the load.

Fleet Safety Programs

Implementing a comprehensive safety program focusing on accident prevention can help improve your risk profile over time. Insurers may offer lower premiums to companies with strong safety records.

Telematics and Tracking

Installing telematics devices and vehicle tracking systems can help monitor driver behavior and vehicle performance, reducing the risk of accidents and insurance claims. In fact, many commercial insurance providers offer these devices to help make their policies more flexible.

Financial Responsibility Bonds

Sometimes, you may need to obtain a financial responsibility bond to meet minimum insurance requirements. This bond ensures that you can cover potential liabilities in case of an accident.

Consult with an Insurance Broker

An insurance broker with experience in commercial trucking can help you find suitable coverage options, even in high-risk situations. They can shop around and negotiate on your behalf to find the best rates.

Conclusion

Finding high-risk commercial truck insurance may be difficult, but it’s far from impossible. Ensure you understand your high-risk trucking insurance options before searching for the right insurance company and planning to meet your needs.

If you’re looking for trucking insurance to purchase a vehicle, you’ll likely need to secure the best commercial truck financing for your needs. Contact Mission Financial; we can help even high-risk candidates secure the funding they need to purchase a semi-truck.