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Insurance

Commercial Truck Insurance For New Drivers

Commercial Truck Insurance For New Drivers

As a new commercial truck driver, it can be difficult to find good insurance coverage for your vehicle. Insurance companies often see new drivers as risky and only provide coverage to those who have been driving trucks for two or more years.

Additionally, the companies that do offer insurance for new drivers often charge high rates. This means you may end up paying two or three times more than experienced drivers. However, there are ways to find affordable insurance coverage if you know what type of coverage you need and how to search for cheaper options.

What Type of Coverage Do New Truck Drivers Need?

The type of commercial trucking insurance coverage you need as a new driver depends on the category of commercial truck drivers you belong to. There are two main categories of commercial truck drivers:

Company Drivers

Company drivers work for a trucking company as employees or independent contractors. You don’t need commercial trucking insurance if you’re a new truck driver directly employed by a trucking company. The company is responsible for insurance coverage.

However, you may need insurance coverage if you’re an independent truck driver working for a trucking business.

Owner-Operators

Owner-operators have their own trucking business and operate their commercial vehicles. There are two types of owner-operators: those who work under the authority of a motor carrier (leased owner-operators) and those who operate on their authority.

Leased Owner-operators

Leased owner-operators are covered by their motor carriers’ commercial truck insurance coverage.

Depending on the requirements of a motor carrier, an owner-operator with leased authority may need to purchase motor truck cargo or bobtail commercial truck insurance. If you fall under this category, read your lease agreement carefully to determine which additional insurance coverage you need.

Own Authority Owner-operators

Own authority owner-operators are solely responsible for purchasing all the mandatory commercial truck insurance policies they require to thrive. This includes some or all of the essential truck insurance coverage options outlined below.

What does Commercial Truck Insurance for New Drivers Cover?

Commercial auto policies for new drivers offer various essential and optional insurance coverage.

Essential Commercial Truck Insurance for New Drivers

Essential trucking insurance for new drivers is coverage all new truck drivers should consider to protect their ventures from significant financial losses. These coverage options include:

Trucking Primary Liability Coverage

Primary liability coverage is the minimum commercial truck insurance all trucking companies and owner-operators must have to operate in nearly all states. It includes bodily injury and physical damage coverage if you cause an accident. With a primary liability cover, your insurance company pays for the injured parties’ medical expenses and covers any damages to their vehicles.

Physical Damage Liability Insurance

Physical damage coverage protects your commercial trucks from all losses and damages they are exposed to on the road. Most commercial insurance companies offer this coverage in two parts:

Collision coverage: This insurance helps pay for repairing or replacing your vehicle if it is damaged in a collision with another vehicle or object.

Comprehensive coverage: This cover includes compensation for non-collision losses such as theft, fire, vandalism, and harsh weather conditions.

Unlike primary liability insurance, physical damage coverage is not required by law. However, it’s critical commercial truck insurance for new drivers as it protects the main asset, providing business security.

Non-Trucking Liability Insurance

Non-trucking liability coverage protects you if you get into an accident when driving your commercial truck for errands unrelated to work.

General Liability Insurance

Motor truck general liability insurance coverage pays for bodily injury and physical damages unrelated to driving your commercial truck but involving your business. This includes bodily injury compensation for accidents on your business property or those for-hire truckers caused away from your location.

Motor Truck Cargo Coverage

Motor truck cargo coverage protects the goods you haul. It’s an essential coverage option for most leased owner-operators as some motor carriers require truck drivers under their lease to carry cargo insurance.

Optional Commercial Truck Insurance For New Drivers

As a new driver, you should get more coverage to reduce risk and ensure you succeed. To do this, consider the following optional commercial truck insurance for new drivers:

Loss mitigation: Used to cover any losses that exceed your truck insurance policy limits.

GAP protection: GAP (Guaranteed Asset Protection) insurance is optional. This coverage covers any “gap” between the actual cash value of your vehicle at the time of loss and what you owe on your auto loan or lease.

How To Find Affordable Commercial Truck Insurance For New Drivers

There are three steps you can take to find affordable truck insurance for new drivers.

Step 1: Evaluate Your Business Needs

Evaluating your business needs will help you identify the coverage you need to avoid purchasing excess or unnecessary coverage. To do this, assess the common factors insurance providers use to set their commercial truck insurance premiums. These include your operating radius, vehicle and cargo type, FMCSA requirements, location, etc.

Step 2: Compare Quotes From Multiple Commercial Truck Insurance Companies

Get quotes from several commercial truck insurance companies and settle for one with high-quality coverage at an affordable rate.

Look at how the rates of different commercial truck insurance providers fare compared to the national average rates. Here’s a guide to help you understand the average commercial truck insurance cost for various coverage options.

Also, evaluate different commercial truck insurance companies based on their reputation, customer support, and availability to get the best insurance company.

You can get quotes from multiple commercial truck insurance providers at once through commercial trucking insurance brokers like Evolution Insurance Brokers.

Step 3: Negotiate Best Deal

Once you’ve identified the best commercial truck insurance providers, negotiate with each and settle for the best deal. Major insurance companies might be reluctant to offer discounts to new truck drivers, but it’s worth a try.

Final Thoughts

Getting the right commercial truck insurance policy gives you the financial stability and peace of mind you need to grow your venture. You might lose thousands to millions of dollars in settlement claims without insurance.

For additional peace of mind and security for your trucking business, we’ve partnered with TrüNorth™ to provide comprehensive commercial truck warranty protection. We can also help finance your commercial truck purchases to help you grow, even if you’re a first-time buyer. Contact us to learn more.

accident 3rd party

What to Do in an Accident With Semi Truck

As a truck driver, you’ll need to know precisely how to deal with a semi-truck accident if one happens.

While it’s essential to know how to avoid accidents in the first place, accidents still happen all the time. Nearly 388,000 truck accidents happen annually across the U.S.

If you can’t prevent the accident from taking place, the best thing you can do is to deal with the accident as efficiently as possible. Each accident is different and will come with its challenges. However, the same general process can be followed after an accident occurs.

Here are the steps you should follow if you’ve experienced a semi-truck accident.

What to Do in an Accident With Semi Truck: Steps to Follow

Check for Injuries

First and foremost, check yourself and others involved for any injuries. While there’s much to consider during a truck accident, safety should always be your priority.

If anyone is injured, call 911 immediately to request immediate medical attention. Even minor injuries should be reported, as a complete medical evaluation may reveal the injuries to be more severe than suspected.

Identifying possible injuries will also help you understand how best to deal with the truck accident in terms of moving vehicles and clearing up any wreckage.

Once emergency services have been notified about any injuries, you can move on to dealing with the semi-truck accident.

call law enforcement
Move to Safety

If possible, move your vehicle to the side of the road or a safe location to avoid further accidents. Turn on hazard lights to alert other drivers.

This isn’t possible for some truck accidents, and it’s not a good idea to try to move any vehicles if they’re in hazardous situations. However, if your vehicle is alright and you can clear the road without causing any harm, then try to do this.

Before moving the vehicle, though, you’ll want to take pictures of the car accident. This is important for the truck accident investigation – more on this later.

Call Law Enforcement

Once the scene is as safe as possible, the next step is to alert the authorities about the truck accident.

Contact the police to report the accident, even if it’s minor. Having an official report can be valuable for insurance claims and legal purposes. If you’re a truck driver who crosses state boundaries, it’s wise to know which local law enforcement numbers to call for each state you travel through.

Exchange Information

You’ll need information to contact the other driver’s insurance company. Make sure you exchange this information before departing the scene of the accident.

Exchange contact, insurance, and driver’s license information with the other driver. Include their company name, contact number, and any relevant details. Semi-truck accidents can sometimes be tricky to report and follow through with insurance, but having the other driver’s contact details will help the process.

Gather Evidence

An essential part of dealing with a semi-truck accident is gathering enough evidence to report the accident to your insurance company.

If it’s safe to do so, take photos of the accident scene, the positions of the vehicles, any damage sustained, and road or weather conditions. Taking videos with your mobile phone will also be useful.
The more detailed your documentation is, the better, as this will all help make the insurance claims process go faster. So, take your time carefully documenting the scene of the accident.

Obtain Witnesses

If there were any witnesses to the accident, ask them for their contact information. Their statements can provide valuable support for your case.

While this isn’t always possible or necessary, having an extra witness statement is always helpful to help with any legal claims or police reports.

Limit Communication

While exchanging information with the involved parties is essential, avoid discussing fault or assigning blame at the scene. Stick to the facts when talking to the police, other drivers, and witnesses.

Always try to keep a cool head and focus purely on the accident and how best to deal with it. While your emotional condition can be difficult after a semi-truck accident, staying calm and collected will make the process easier to manage.

Contact Your Insurance Company

As soon as you’ve dealt with the accident, notify your insurance company about what happened. They will guide you on the necessary steps for filing a claim and getting compensation.

Having reliable insurance is one of the most essential parts of starting a trucking company. Once you’ve found the right commercial truck insurance provider, ensure you know how to reach them in an emergency.


Seek Medical Attention

Even if you don’t feel seriously injured, seeking medical attention after an accident is always advisable. Some injuries might not be immediately apparent and could become more significant as time passes.

Avoid Settlement Agreements

While this differs from case to case, it’s generally best to avoid settlement agreements immediately.

Do not sign any settlement agreements or release forms from the trucking company or their insurance representatives without consulting your legal counsel. Make sure you deal with a lawyer when going through settlement negotiations. This will help you get the best deal and compensation for your situation.

You must consult an attorney if the accident resulted in significant injuries, damages, or disputes. Try to consult with a personal injury attorney specializing in commercial vehicle accidents. They often offer a free consultation – so make use of these.

Conclusion

Semi-truck accidents may be the last thing you’ll ever want to deal with. However, they sometimes cannot be avoided.

Knowing how to deal with these accidents will help you get through the accident faster and safer. Following the proper steps will also make it easier to get an appropriate settlement after the accident.

If you need to purchase a new semi-truck, you may need to find the right financing solution to make it happen. Get in touch with us at Mission Financial Services, where we help all kinds of commercial truck drivers access the financing they need to purchase a semi-truck.

How Much Is Commercial Truck Insurance

How Much Is Commercial Truck Insurance?

How Much Is Commercial Truck Insurance
The cost of commercial truck insurance can vary widely depending on many factors. These factors include the type of trucks, their usage, the driving records of the drivers, the geographic location of the business, the amount of coverage needed, and the deductible chosen.

Generally, commercial truck insurance can range from several thousand to tens of thousands of dollars annually per vehicle.

In this article, we discuss how much you’re likely to pay for different types of commercial truck insurance. We also offer tips for keeping your insurance costs low without compromising coverage quality.

What is the Cost Of Different Types of Commercial Insurance Coverage?

There are several major types of commercial truck insurance coverage. Some are required by law, and you cannot run your trucking company without them. Other types are not legally required but are essential to protect your trucking business from losses due to legal claims in the event of an accident.

Here is a summary of the insurance costs for different types of Insurance coverage:

truck wreck
Primary Liability Coverage

Primary liability is the minimum liability coverage all trucking business owners, including autonomous commercial truck drivers, must have. Costs range from $5,000 to $7,000 (about $500 average monthly) for owner-operators with their authority.

If you’re an owner-operator working with a motor carrier, the law requires your motor carrier to cover these costs.

Usually, primary liability includes bodily injury and property damage liability as one. This way, it covers the medical expenses of victims injured in an accident caused by your semi-truck and offers compensation for any physical damages.

Physical Damage Coverage

You’ll pay between $1,000 and $3,000 (or $100 to $300 monthly) on average for physical damage insurance. These costs vary significantly because physical damage insurance payments are often calculated as a percentage of the truck’s total value.

All the same, this is essential coverage because of its comprehensive nature. It protects your semi-truck from damages as a result of collisions, vandalism, theft, and even harsh weather conditions.

General Liability Coverage

General liability insurance is not as costly as primary liability insurance, yet it can help your commercial trucking business save money. You’ll pay approximately $500 – $600 minimum per year, although this cost can be much higher.

General liability insurance covers you for more than accidents involving your trucks. It covers you for any damages or injuries related to your trucking business. Say a customer falls and gets injured on your business premises. You won’t have to pay their medical bills out-of-pocket if your commercial truck insurance policy covers general liability.

insurance cover

Non-trucking Liability Coverage

Non-trucking liability protects you when using your semi-truck for purposes other than work. It costs about $400 annually on the lower end but might be as much as $1644.

Bobtail Insurance

Bobtail insurance covers owner-operators who sometimes drive their semi-truck without its trailer in tow. It’s a requirement by most motor carriers. It might be necessary for for-hire truckers operating on a lease with a motor carrier. This insurance costs between $300 and $400 annually.

Motor Truck Cargo Insurance

Cargo insurance costs vary according to the type of cargo you haul. The standard cargo coverage limit is about $100,000. Still, some shipping companies require owner-operators to get up to $1M in coverage.
For $1M cargo coverage, you might pay as little as $400 per year or as much as $1,800.

Umbrella Insurance

Umbrella insurance for semi trucks acts as an extra layer of protection in case you are involved in a severe accident or lawsuit.

The average cost for this type of insurance is $5000 to $7000 per year. But the cost of umbrella insurance for semi trucks can vary widely depending on several factors including risk factors such as the routes you drive and your driving history.

Other Factors Affecting Semi-truck Insurance Costs

Understanding the factors that influence the cost of commercial truck insurance gives you insight into what insurance providers consider when setting their rates. Here are some critical factors that determine your semi-truck insurance cost.

U.S map

Federal & State Regulations

The Federal Motor Carrier Safety Administration (FMCSA) sets regulations all truckers must comply with to operate. At the same time, states set their minimum coverage limits for commercial truck insurance.

These regulations guide how insurance providers create their trucking insurance policies and premiums.
For instance, an owner-operator in Nebraska pays higher semi-truck insurance costs than one in New Jersey because the two states have different minimum coverage limits.

Vehicle Specifications

Your vehicle specifications and overall condition, including the vehicle type and truck’s weight, determine your cost of commercial insurance. You’ll pay more to insure heavy trucks. The size and value of your fleet also matter. You might pay less if you insure your entire fleet as a bundle.

Type of Goods Hauled

Trucking insurance for hauling hazardous materials costs more than similar insurance for transporting non-hazardous goods.

Radius of Operation

If trucks travel longer distances or cover more miles, your insurance costs will be higher. This is because the chances of an accident increase the longer the truck is on the road.

Experience of Truck Drivers

You pay less for commercial insurance if you work with experienced truck drivers with clean driving records.

Credit History

A good credit history helps you qualify for affordable commercial truck insurance rates.

Coverage Limits & Deductibles

When a claim is made (deductible), the out-of-pocket amount affects your truck insurance costs. When choosing a high deductible and low coverage limit, you pay less for commercial truck insurance.

calculating costs

Tips for Reducing Insurance Costs and Keeping Them Low

  1. Maintain a clean driving record.
  2. Monitor your credit reports to ensure you maintain a good credit history.
  3. Reduce the distance covered by avoiding unnecessary trips and finding efficient routes for making the necessary trips.
  4. Consider getting a bundle commercial insurance package, where you combine all your liabilities and get one heavy trucking insurance package to cover them all.
  5. Ask for discounts, especially when insuring an entire fleet.
  6. Consider getting usage-based insurance. It’s cheaper. Check out our guide on usage-based insurance to learn more about this.

Conclusion

Remember, commercial auto insurance is not the same as commercial truck insurance. Auto insurance includes other types of commercial vehicles like buses, whereas truck insurance is specific for commercial trucks.

You must get the right insurance for your trucking company. Operating without proper insurance can lead to severe penalties, fines, and even the suspension of your business operations.

You may want to consider getting help from a licensed insurance agent to find the best commercial insurance to cover your specific business adequately.

If you have any questions on commercial trucking insurance, give Mission Financial Services a call. We are always ready to help!

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