Business

All About Self-driving Semi-trucks

2027 is the year that some experts believe self-driving semi-trucks will get on the highways, although a few road tests are already underway. This will shake up the trucking industry!

It may affect you, whether you’re a seasoned truck driver or new to trucking. What are self-driving trucks? Are they a good idea? Will they replace human truck drivers?

In this post, we discuss everything you should know about self-driving semi-trucks to help you plan and avoid any disruption to your livelihood.

What Are Self-driving Semi-trucks?

Self-driving or automated semi-trucks are eighteen-wheelers capable of traveling independently, i.e., without input from human drivers. They can go anywhere traditional trucks go and do almost everything human drivers do.

These trucks depend on self-driving technology, including sensors, actuators, machine learning systems, and powerful processors to navigate. They create and keep a clear map of their environment using several sensors and cameras strategically placed in various parts of the vehicle.

Some of these include:

Radar sensors scan the positions of any vehicles nearby.
Light detection and ranging (Lidar) sensors identify lane markings, detect road edges, and measure distances.
Video cameras look for pedestrians, track other vehicles, read road signs, and detect traffic lights.
Ultrasonic sensors in the truck’s wheels detect other vehicles when parking.

Once the sensors receive relevant input, they send it to sophisticated software for processing. The software then plots a path and instructs the car’s actuators to control steering, acceleration, and braking.

Predictive modeling, hard-coded rules, obstacle recognition, and avoidance algorithms help the software navigate obstacles and obey all traffic rules.

At the moment, very few semi-trucks, which are still in their testing phase, can operate entirely on their own. Most require human drivers to act as safety drivers and take control if anything goes wrong. But this is changing fast as autonomous technology continues to improve.

Key car manufacturers in the autonomous trucking industry are also channeling more resources to perfect self-driving technology and eliminate the need for drivers. So far, there are a few types (about 6) of self-driving trucks, each with a different driving automation capacity.

Types of Self-driving Trucks

Driverless trucks are categorized according to their levels of automation or how much human input the vehicles require to operate on public roads. The less human involvement the autonomous vehicle needs to operate, the higher the automation and the category.

Some common levels of autonomous driving include the below.

Level 0: No Automation

Such a vehicle requires manual driving. A human driver must be behind the wheel to perform most driving tasks like steering and acceleration. There could be a few automated truck features, such as automatic emergency braking, blind spot, and lane departure warning. But they are limited to offering warnings and momentary assistance.

Also, the driver has to supervise these features constantly to maintain safety. Most trucks currently fall under this category.

Level 1: Driver Assistance

Level 1 semi-trucks have the most basic form of automation. They come with at least one automated driving system to support the driver’s efforts. It could be a brake or /acceleration driver support system, lane centering, or adaptive cruise speed monitoring control. But not all three.

Level 2: Partial Automation

For level 2 trucks, there is an advanced driving assist system (ADAS) with lane centering and adaptive cruise control. The system provides steering and acceleration plus brake support to the driver. However, the driver still needs to remain alert and monitor all driving operations behind the wheel.

Level 3: Conditional Automation

Autonomous semi-trucks at level 3 have sophisticated self-driving features like environmental detection capabilities. The trucks can perform nearly all the driving tasks but under limited conditions. These conditions must all be met for the automated driving systems to work.

A human driver must also be present to take over upon request by the Artificial Intelligence (AI) systems or during an emergency.

Level 4: High Automation

Level 4 autonomous semi-trucks can perform all driving operations. This includes stopping in case of a system failure or emergency. They don’t require truck drivers.

These autonomous vehicles also don’t need pedals or a steering wheel. Their self-driving autonomous system can take the truck from one point to another following preprogrammed route set via geofencing.

Level 5: Full Automation

Full driving automation for level 5 autonomous trucks lets the vehicle travel to any place through all conditions. It doesn’t require any human interaction or geofencing. Such a system only needs the final destination details, and it takes care of all driving tasks.

Are Driverless Trucks A Good Idea?

Like most opinions, the answer to whether self-driving trucks are a good idea depends on an individual’s perspective. Some people believe autonomous trucks are a good idea for the same reasons others think they are not.

For example, big players in self-driving truck companies and fleet managers support autonomous trucks because they’ll revolutionize the trucking industry by eliminating driver shortages. At the same time, most truck drivers see automated trucks as a threat because they might lose their jobs.

We’ve outlined some of the advantages and disadvantages of self-driving trucks below. So you can weigh and judge for yourself whether they’re a good idea or not.

Advantages Of Autonomous Trucks

Improved Efficiency

With advanced technology comes increased efficiency, and autonomous trucking technology is no exception.

A self-driving semi maximizes performance in terms of the time taken to deliver freight and fuel efficiency. It can choose the most effective route to deliver freight in the shortest time possible. Also, shorter transportation time may push companies to expand their operations. More distribution centers with an increased variety of products can emerge because of this.

Increased Safety

Autonomous trucks will enhance road safety by eliminating human error – one of the most common causes of truck accidents. All the high-tech sensors and software we mentioned earlier work jointly to promote excellent driving and minimize the chances of road accidents.

Minimum to No Breaks

Unlike a human driver, a self-driving truck can operate round-the-clock, including off-peak hours, without any breaks. This means that it can transport more loads faster than human truck drivers and whenever the need arises.

Fleet managers also don’t have to stress about drivers complying with the strict logging requirements by the Department of Transportation.

Reduced Operating Costs

As a result of all the benefits above, automated trucks lower operating costs. Specifically, faster freight delivery and fuel efficiency reduce fuel expenses. While increased safety translates to substantial savings in insurance claims, settlements, and accident repairs. Having no drivers also lowers labor costs for trucking companies.

Disadvantages Of Autonomous Trucks

System Failures

Picture a fully loaded automated vehicle, say a semi-truck at about 80,000 pounds. It’s taking instructions from its high-tech system, cruising the highways. Then, the system fails. What would happen?

Critics of autonomous trucking argue that accidents ensuing from driverless trucks are more damaging than those with truck drivers for one main reason: They lack the human connection and live-saving instincts humans have.

In this scenario, if a human driver were behind the wheel, they could make eye contact with other drivers, send subtle cues, and make split-second judgment calls to prevent the accident or minimize its impact. A self-driving truck cannot do the same.

Security Threats

Self-driving technology is susceptible to cyber criminals, including hackers. Malicious attacks can bring trucking operations to a halt, affecting the entire supply chain and leading to losses.

Weather Conditions

Unpredictable weather poses a significant challenge to most self-driving vehicles. Can the sensors still identify lane markings if they’re obscured by snow?

Automotive engineers are working hard to ensure autonomous cars can operate under all weather conditions. But the uncertainty of weather and other natural phenomenon may pose new challenges with time.

Government Regulation and Legal Liability

What happens when one autonomous semi-truck collides with another? Who will be accountable or liable for the accident? What if the truck collided with a non-self-driving vehicle?

The regulatory process for self-driving cars shifted from federal control to state-by-state mandate. However, most states are yet to polish their autonomous vehicle laws to clarify such matters. Things are likely to change over time, but until then, government regulation on the operation of autonomous trucks remains a challenge.

Overreliance On Big Tech

Automated trucks will require periodic software updates to operate optimally. Because of this, big tech companies currently working to make driving automation a reality, like Torc Robotics, might take control of the transportation industry. If this happens, fleet managers may lose control of their fleet management costs.

Will Self-driving Semi-trucks Replace Human Drivers?

The truth is that trucking jobs, as we know them, will change significantly. And yes, a good number of truck drivers will lose their jobs. But self-driving semi-trucks will only displace as opposed to completely replacing human drivers.

Research estimates that automated trucks may displace more than 2 million truck drivers in the United States and Europe. The demand for new drivers will also reduce by about 70% as most current professional trucking jobs will become redundant.

New opportunities are likely to emerge. Following the trends from the ongoing driverless testing pilot programs, truck drivers may be required to take on a supervisory role. That is, supervising the truck and cargo and ensuring everything goes smoothly. They may also need to conduct emergency repairs from time to time.

Also, short-distance truck drivers will keep their jobs longer to help the trucks navigate congested urban areas. However, if you work long-haul routes, you will have to adjust since the trucks are made to automate highway driving. You can switch to short-distance trucking to continue driving. This can mean reduced working hours which will translate into a pay cut.

Alternatively, you can acquire more maintenance and supervisory skills. Or take new training and explore new roles like being an automated truck technician.

The good news is we still have a few years before driverless trucks become the norm on our highways. So, you’ll have enough time to adjust and prepare for the change.

How Soon Will Large-Scale Use Of Driverless Trucks Become A Reality?

As noted before, we might start seeing a good number of self-driving trucks on our highways as soon as 2027. But the full transition into autonomous trucking will occur gradually throughout the next decade.

The automated trucks will be made available for use in four distinct phases, using a fleet of self-driving trucks connected through wireless technology:

Phase one: A fleet of semi-trucks follows a lead truck closely on the highway. Each truck will have a human driver to take control of the wheel on some, mostly smaller, roads and allow the AI program to take over driving on freeways. This technique is commonly referred to as platooning.
Phase two: In this phase, only the lead truck will have a human driver, as a convoy of automated trucks follows closely behind. It may become a reality by 2025.
Phase three: For the third phase, the lead truck will be completely self-driving on the highway. Meaning the entire convoy will be autonomous. However, a human driver might have to be present in the lead truck to help navigate loading docks and small roads.
Phase four: The final phase will see 100% automated trucks on the highways at scale. There will be no human driver in any of the trucks. This may become a reality by early 2030.

What’s Next?

If you’re a truck driver, you may be required to adapt and take on a more passive but crucial role similar to pilots in the aviation industry.

New opportunities you can take advantage of will also emerge as automation continues to infiltrate the trucking industry.

Chances are, with time, other tasks like loading and unloading will get automated too. Overall, the transportation industry is staring at a completely digitized 24/7 supply chain, and hopefully, you are ready to make it work for you!

To stay updated with the latest news on self-driving AI and autonomous trucking, read our blog!

Semi-Truck Driver Salary | How To Get Paid What You Deserve

Are you considering a career as a semi-truck driver, or are you already in the field? Understanding how to maximize your earning potential is crucial to a financially rewarding experience.
In this article, we explore the factors that’ll influence your semi-truck driver salary. We will also give you tips to ensure that you are compensated appropriately for your skills and experience.

Let’s guide you through strategies to help you secure a salary reflecting your dedication and hard work. If you’re interested in a higher salary, read on!

How To Get A Good Salary As A Truck Driver

The main influences that affect your salary are your experience and the industry you choose. Luckily, you can take extra measures to ensure well-paid compensation. Let’s take a look at a few tips to help you reach your semi-truck driver salary goals.

Research the job market: Different regions and industries may offer varying salary levels for truck drivers. Currently, the highest-paying states for truck drivers are Delaware and Rhode Island.
Find reputable and competitive employers: Look for companies with a reputation for offering competitive salaries and benefits to their drivers. When evaluating potential employers, compare pay scales, bonus structures, and other perks.
Network and stay updated: Attend industry events, join professional organizations, and network with other truck drivers. Staying connected and informed can help you learn about new opportunities and industry trends that may lead to higher salaries.

Specialize or get additional training: Certain truck driving jobs, such as hauling specialized cargo or operating oversized vehicles, often pay higher salaries. Consider getting specialized training to increase your marketability and earning potential.

Salary negotiation skills and personal factors such as willingness to work long hours or travel extensively can also influence your salary. Finding the right balance between financial goals and personal preferences is essential when pursuing a good salary as a truck driver.

How Much Can You Expect To Be Paid As A Truck Driver?

When it comes to a truck driver’s salary, experience, and specialization play a crucial role. In a nutshell, here’s an average of what you can expect to get for your semi-truck driver salary:

Entry-level truck drivers: Beginner truck drivers earn a national average of $41,160 annually.
Experienced truck drivers: As you gain experience and maintain a clean driving record, the average pay is $90,000.
Specialized truck drivers: Specialists, such as ice truckers, and those transporting demanding types of cargo, can expect to be paid anything from $70,000 per year.

Remember, your semi-truck driver salary can differ depending on your location and the company you work for. A more reputable company will often pay more than the average salary compared to a startup business.

Perks Of Being A Truck Driver

You can enjoy a variety of perks. Below, we’ve listed only a few of the top benefits you can expect as a small-scale semi-truck driver.

Benefits and Perks From Employers

Many trucking companies will offer you various benefits in addition to your semi-truck driver salary. Let’s take a look at some of them below:

Health insurance: Some companies will provide health insurance coverage. What the health insurance plan offers varies between companies. So, it’s always important to review the details to understand the extent of coverage.
Retirement plans: Your trucking company may offer retirement plans, such as a 401(k). These plans allow drivers to contribute a portion of their earnings towards retirement, often with the added benefit of employer matching contributions.
Paid time off: Paid time off (PTO) is a common perk provided by trucking companies. You can take time off when needed and still receive compensation for those days.
Driver lounges and amenities: Many trucking companies provide designated driver lounges at their facilities or offer access to amenities at truck stops. These lounges are often equipped with the necessary amenities to help you relax during breaks.
Performance bonuses: Trucking companies may have bonus programs based on driver performance, safety records, or meeting specific targets.

It’s important to note that the availability and extent of benefits and perks can vary between trucking companies. When considering employment opportunities, we recommend thoroughly reviewing the benefits package offered by each company to assess the overall compensation and value provided.

Job Security And Demand

Job security is a notable aspect of the truck driving profession due to the constant demand in the transportation industry. Many industries rely heavily on the transportation of goods.

So, truck drivers have a crucial impact on the economy by delivering goods across the country.

E-commerce and online shopping continue to see rapid growth. It means the need to deliver goods to customers quickly grows with it. Because of this demand, the dependence on the trucking industry is unlikely to diminish in the foreseeable future. This sustained demand ensures truck drivers a relatively stable and secure job outlook.

The trucking industry also faces a shortage of qualified drivers, further enhancing job security. As a result, there’s an ongoing need for new drivers to fill these vacancies, which leads to a relatively stable job market and increased job security for individuals entering the profession.

Constant Learning And Skill Development

Constant learning and skill development are valuable perks of being a truck driver. It’ll help increase your marketability and your semi-truck driver salary. Here’s what else it can do for you:

Evolving industry: Technological advancements and regulations constantly change the trucking industry. You’ll have the chance to learn and stay updated on industry changes continuously. It keeps your skills relevant and valuable in the ever-evolving world of trucking.
Training programs: Many trucking companies offer training programs that cover safety protocols, new technologies, and compliance with regulations. These programs help you enhance your skills and stay informed about the latest industry practices.
Professional certifications: Pursuing certifications, like an ice road trucker, showcases your expertise and commitment to your profession. These certifications can lead to more job opportunities and higher pay.
Technology adoption: The trucking industry is embracing technology rapidly. Learning and utilizing tools like GPS navigation, electronic logging devices (ELDs), and fleet management software improves your efficiency and job performance.
Personal growth and adaptability: Being a truck driver exposes you to diverse experiences, people, and situations. In return, it promotes personal growth, adaptability, and problem-solving skills.

Constant learning and skill development as a truck driver contributes to your professional growth, job satisfaction, and marketability within the industry. Embracing these opportunities allows you to thrive in the ever-changing trucking landscape and build a successful and fulfilling career.

Independence And Freedom

Being a truck driver offers several perks, including independence and freedom. One of the advantages is having a flexible schedule. Unlike traditional office jobs, you can often choose routes and plan your travel stops. This flexibility provides you with more control over your working hours.

Even though you are responsible for meeting deadlines and adhering to safety regulations, you’ll have a certain level of independence. It means you can make your own decisions on your own and manage your own time.

As a bonus, you’ll have the opportunity to explore new places. You’ll experience the open road, witness diverse landscapes, and visit different cities, towns, and regions nationwide. It gives a sense of adventure.

Tax Deductions

Tax deductions can be advantageous for truck drivers as they can help reduce the overall tax liability. Here are some standard tax deductions that you may be eligible for:

Meal allowance: When you’re on the road, you can deduct a portion of your meal expenses. The IRS allows truck drivers to claim between 50% and 80% back for meal allowances.

Travel expenses: Travel expenses, such as overnight lodging, fuel, and maintenance costs, can also be deducted. However, long-distance drivers are more likely to benefit from these deductions than regional drivers.
Communication equipment: Any devices, such as cell phones and laptops, that you use exclusively for work are 100% deductible. It also includes any office supplies that you make use of.
Insurance: Owner-operators can deduct insurance used to cover their ½ semi-trucks. It also includes removing cargo insurance and other necessary small business commercial vehicle insurance.
Tools and equipment: Any tools needed to complete job contracts can be deducted from your tax obligations.

It’s essential to keep accurate records of your yearly expenses to support your deductions. Consider consulting with a tax professional or using tax software designed for truck drivers to ensure you take full advantage of all eligible deductions and comply with IRS regulations.

Final Thoughts

A truck driving career offers the potential for a rewarding career and a competitive semi-truck driver salary.

By knowing and understanding the factors that influence commercial truck driver salaries, you can take steps to maximize your earnings.

With experience, professionalism, and a commitment to ongoing growth, you can carve out a successful career and secure a semi-truck driver salary that reflects your dedication and expertise.

If you’re ready to start your truck driving journey, we can help. Mission Financial Services offers loans to new and existing truck drivers. Even if you have a low credit score, we’d like to hear from you!

All About A Federal Bank Commercial Vehicle Loan

Do you understand what a federal bank commercial vehicle loan is?

Purchasing a federal commercial vehicle can often be an intimidating process. There’s a lot of paperwork involved, and you need to make sure you choose a financing option that makes the most sense for your business.

The good news is that commercial vehicle financing can also be a really smooth process if you work with the right company. This makes it easy to access the business vehicle loan you need, to purchase your ideal truck.

This guide will break down what a federal bank commercial vehicle loan is, and what is required to take out one of these loans.

Federal Vehicle Commercial Vehicle Loans

If you want to purchase a commercial vehicle, like a semi-truck, then you’ll likely need to take out a commercial vehicle loan.

Various business vehicle loan options are available for purchasing federal vehicles. Let’s break down how this works.

What is a Federal Commercial Vehicle Loan?

The Federal Vehicle Standards are a system that classifies all commercially available vehicles, governed by the Federal Motor Vehicle Safety Standards. These regulations specify things like the design, construction, performance, and durability requirements of commercial vehicles.

If you want to purchase commercial vehicles that fall under these federal standards, then you’ll likely need to take out a business vehicle loan.

When you take out a commercial vehicle loan, the loan will need to be administered based on the vehicle you have chosen. Of course, any new commercial vehicles in the US need to abide by the Federal Vehicle Standards.

So, a federal vehicle commercial loan is really just a form of vehicle financing that applies to classified commercial vehicles.

Best Way To Finance Your Semi Truck

There are a couple of different options you face when taking out a commercial vehicle loan for your semi-truck. These include taking out a loan amount to purchase the new vehicle, entering into a hire-purchase scheme, or even leasing the commercial vehicle (if you don’t purchase it).

While different options have their advantages for different people and types of semi-truck businesses, the best way to finance your semi-truck is generally to take out a term loan with competitive interest rates.

Let’s break down the different steps you’d need to go through to take out a commercial vehicle loan.

Establish Your Credibility

The first step to taking out any kind of commercial vehicle loan is to determine your credibility for the loan. Various checks are made to establish this, which include:

Looking into your credit history and credit score: Ideally, you’ll work with a financing provider that considers your entire credit profile, and not only your credit score. This helps people with bad credit access loans for their business needs.
Establishing how much of a down patent you can make: Often, a larger down payment can result in better interest rates. While a down payment is not always necessary, first-time customers generally pay a down payment of around 20% to 30% of the vehicle’s price.
Your time with a commercial driver’s license (CDL): The longer you’ve held a CDL, the easier it will be to vehicle financing loan schemes with competitive rates.
Considering the vehicle type and age: Of course, lenders provide customized solutions based on the type of vehicle you plan to purchase. Some vehicle financing providers accommodate buyers who are interested in older vehicles. However, it’s important to consider the cost of repairs and maintenance when purchasing an older truck.

These factors will help you determine how eligible you are for taking out a business loan. These elements also determine the maximum loan amount you can take out, and whether you can access flexible terms on the working capital.

Gather Your Information

Once you have established your financing credibility, the next step is to gather all of the documentation you need to apply for an existing commercial vehicle loan.

Vehicle loans require buyers to produce the following documents:

Bank statements
References
Your CDL
Contact details
Proof of insurance
Business incorporation documents or operating agreements (depending on the business loan)

By having all of these documents ready, applying for vehicle loans becomes a much faster process. This will help you get the funding you need as soon as you find the right vehicle.

Find the Vehicle

Now you need to find the semi-truck that matches your business requirements. Having very specific requirements in place will make it a lot easier to find the right truck for your needs. Of course, you will also have a very clear budget available for your business vehicle.

Once you have found the right truck, you’ll need to establish an exact price for the vehicle and get a written quote on the purchase of the truck. This is necessary for your business loan.

Get Your Insurance

It’s possible to get vehicle loans pre-approved without insurance, but having an insurance policy in place will make the process a lot easier. This is essential for finalizing your truck financing.

There are many different types of insurance policies available, each with its own pros and cons. Make sure that you choose a policy that makes sense for your vehicle and business.

Apply for the Loan

Now you just need to submit all of your documents to your vehicle financing company to access the business loan.

Mission Financial makes applying for vehicle loans an easy process. Anyone, regardless of credit history, can access loans with a great interest rate. This makes it simple to purchase the semi-truck of your dreams.

Final Thoughts

There can be quite a lot involved in taking out a commercial vehicle loan. The most important thing is being well-prepared, and having a good understanding of your requirements. This will help you find a loan and vehicle that makes the most sense for your situation.

At Mission Financial Services, we help truck drivers and businesses of all sizes access the best possible commercial loans for their needs. Get in touch today to see how we can help you purchase the ideal federal commercial vehicle for your requirements.

Everything To Know About Commercial Truck Insurance For Small Businesses

Hey there, small business owners in the trucking industry! Are you running a fleet of commercial trucks or considering venturing into this dynamic field? In that case, one crucial aspect you need to familiarize yourself with is commercial truck insurance.

It’s no secret that the road can be unpredictable, and protecting your business from potential risks and liabilities is essential.

Let’s delve into the world of trucking insurance, unravel its complexities, and provide you with essential insights to make informed decisions.

So, fasten your seatbelts and get ready to navigate the insurance landscape with confidence and peace of mind!

Commercial Truck Insurance For Small Business: All You Need To Know

Here’s everything you need to know when you purchase commercial truck insurance.

Types Of Commercial Truck Insurance

Understanding the types of commercial truck coverage is crucial for small businesses in the trucking industry. Each type of coverage addresses specific risks and liabilities, allowing you to tailor your personal auto insurance policies to the unique needs of your business.

By selecting the appropriate insurance coverage, you can protect your assets, comply with legal requirements, and confidently operate your small trucking business.

Here are the most common types of small business commercial vehicle insurance out there.

Primary Liability Insurance

Primary liability insurance is a legal requirement for all commercial trucks operating on public roads. It covers bodily injury and property damage caused to others in an accident where the insured truck is at fault. This insurance ensures victims receive compensation for their injuries or property damage, protecting your business from lawsuits.

Physical Damage Coverage

Physical damage coverage protects the insured commercial truck itself. It includes collision coverage, which covers damages from collisions with other vehicles or objects.

It also covers damages from non-collision incidents such as theft, vandalism, fire, or natural disasters. Physical damage coverage is critical if your truck has significant value or if you have financing or leasing obligations.

Cargo Insurance

Cargo insurance protects the goods or freight being transported by your commercial truck. It covers damage or loss of cargo due to accidents, theft, or other covered perils.

Cargo insurance is crucial for trucking businesses that transport valuable or sensitive cargo, providing peace of mind and financial protection in case of unforeseen incidents.

Non-Trucking Liability Insurance

Non-trucking liability insurance, or bobtail insurance, covers liability when the truck is operated for non-business purposes, such as when the semi-truck driver is off-duty or using the truck for personal use. This insurance fills the coverage gap that may exist when the primary liability insurance does not apply outside of business-related activities.

Motor Truck General Liability Insurance

Motor truck general liability insurance offers coverage beyond primary liability insurance. It covers bodily injury or property damage caused by non-trucking-related activities, such as when the driver is at a loading dock or engaged in other non-driving operations. This insurance protects your business from potential liability claims during trucking operations.

Trailer Interchange Insurance

Trailer interchange insurance covers damage or loss to non-owned trailers that a trucking company uses under a trailer interchange agreement.

This insurance is essential for rental reimbursement and when trucking companies interchange trailers with other companies or use trailers owned by others, ensuring that damages to the trailers are covered under your commercial truck insurance policy.

Umbrella Insurance

Umbrella insurance provides additional liability coverage that extends beyond the limits of your primary liability insurance. It offers extra protection against high-cost claims and lawsuits.

Umbrella insurance can benefit trucking businesses that want to increase their liability coverage limits and protect their assets in a catastrophic event.

What To Look For In Commercial Truck Insurance

When choosing the best commercial truck insurance for commercial vehicles, it’s essential to consider several factors to ensure you have the right coverage that meets your specific needs. Here are some key aspects to look for when evaluating commercial trucking insurance options:

Customizable Policies

Every trucking business is unique, and your insurance needs may vary depending on the type of cargo you transport, the distance you travel, and other specific factors. Look for insurance providers that offer customizable policies, allowing you to tailor the coverage to your business requirements. This ensures you only pay for the coverage you need without unnecessary extras.

Adequate Coverage Limits

Assess the coverage limits offered by the insurance policy. It’s crucial to have adequate coverage limits that align with your business’s potential risks and liabilities. Consider factors such as the value of your trucks, the nature of the cargo you transport, and the potential costs of accidents or lawsuits. Adequate coverage limits provide the financial protection you need in case of unforeseen events.

Deductibles And Premiums

Evaluate the deductibles and premiums associated with the insurance policy. Deductibles are the amount you’re responsible for paying out of pocket before the insurance coverage kicks in. At the same time, premiums are the recurring payments you make for the policy. Consider your budget and financial capabilities to choose deductibles and premiums that are reasonable and affordable for your small business.

Claims Process And Customer Support

Look for an insurance provider with a straightforward and efficient claims process. In the event of an accident or loss, a responsive and supportive claims department can make a significant difference in quickly resolving issues and getting your business back on track. Read reviews and seek recommendations to gauge the quality of customer support the insurance company provides.

Insurance Company Reputation

Research the reputation and financial stability of the commercial truck insurance company you are considering. Look for insurance providers with a solid track record, strong financial ratings, and a history of providing reliable coverage and excellent customer service. Reputable commercial truck insurance providers will give you confidence that they’ll be there when you need them most.

Additional Services And Resources

Consider any additional services or resources offered by the insurance provider. Some companies provide risk management tools, safety training programs, or access to industry-specific expertise. These value-added services can help you enhance the safety of your operations, mitigate risks, and improve overall business performance.

Insuring Vs. Financing Your Semi-Truck

When it comes to buying a semi-truck for businesses, you’ll likely face the decision of whether to insure or finance your vehicle.

Both options have their merits, and understanding the differences can help you make an informed decision. Let’s explore the considerations when it comes to insuring versus financing your semi-truck:

Insuring Your Semi-Truck

Insuring your semi-truck is critical in protecting your investment and managing potential risks. Commercial truck insurance companies offer coverage for liability, physical damage, motor truck cargo, and more.

Insuring your semi-truck protects your business from the financial implications of accidents, theft, damage, or other unforeseen events. Commercial auto insurance acts as a safety net, helping you recover financially and continue operations in the face of adversity.

It provides peace of mind, knowing that you’re adequately protected and can focus on your business without worrying about the potential financial burden of incidents on the road.

Financing Your semi-truck

Financing your semi-truck involves obtaining a loan or lease to acquire the vehicle. This option allows you to spread the cost of the truck over a predetermined period, making it more affordable in the short term.

Financing can be advantageous, especially if you don’t have the total funds upfront or prefer to allocate your capital to other aspects of your business.

By financing, you can secure a reliable and efficient semi-truck without depleting your cash reserves, enabling you to preserve working capital for operational needs or other investments.

However, it’s essential to consider the terms and interest rates associated with the financing option to ensure it aligns with your budget and financial goals.

Making The Right Choice

The decision between insuring and financing your semi-truck ultimately depends on your specific circumstances and priorities. Assessing your business’s financial position, risk tolerance, and long-term goals is crucial.

If you have the financial capacity, insuring your semi-truck is a non-negotiable aspect of responsible business ownership. Insurance protects your investment, business reputation, and ability to bounce back from potential setbacks.

On the other hand, if you require additional funds to acquire a semi-truck and financing aligns with your financial strategy, securing a loan or lease can be a viable option. You’ll need to consider commercial truck insurance costs.

Most businesses choose a combination of both insurance and financing.

By insuring your semi-truck and financing its purchase, you can simultaneously enjoy the benefits of protection and affordability. This approach allows you to balance the need for insurance coverage with the financial flexibility provided by financing arrangements.

Ultimately, whether you choose to insure, finance, or pursue a combination of both for your semi-truck, consulting with professionals in the insurance and financing sectors is crucial.

Final Thoughts

Remember, insurance is not just a requirement like your commercial driver’s license, it’s an investment in the longevity and stability of your business.

Take the time to research and compare different insurance options, consult with professionals in the industry if needed, and choose a policy that aligns with your goals and risk tolerance.

With the right commercial truck coverage, you can focus on growing your business while knowing you’re protected against potential challenges and setbacks.

If you’re looking to insure your semi-truck, reach out to Mission Financial Services today.

How to Start a Semi-Truck Parking Business

Starting a semi-truck parking business can be a great idea. As long as you find an area with strong demand for truck parking, you can start a profitable and rewarding business, helping truck drivers and truck companies with a space for their vehicles.

There are many considerations when starting a semi-truck parking lot. There are also many different types of public parking options you can offer to truck drivers.

If you’re interested in getting this kind of business off the ground, here are some of the main steps you’ll need to follow.

Semi Truck Parking Business: Steps to Success

Perform Market Research

The first step to starting a semi-truck parking business is to perform in-depth market research. The better you understand the market, the more easily you’ll be able to identify the right truck parking lot opportunity.

When researching this, there are a few key considerations. These include:

Understanding what type of truck parking lot you will set up (how large it will be and what types of vehicles you will be able to accommodate)
Identifying areas where there is a truck parking shortage
Understanding what competitors exist in your area
Identifying your exact target audience (this could be long-haul truck drivers, food truck drivers, regional truck drivers, and so on)
Researching the feasibility of your semi-truck parking business and understanding what will be required to make your potential truck parking facilities profitable

Performing in-depth market research is necessary for establishing a detailed business plan. This will help you understand exactly how you will be able to set up the truck parking lot, and what steps you will take to ensure your truck parking facility is profitable and makes sense for the market.

Understand Laws and Regulations

Truck parking lots need to comply with the relevant county and state zoning laws and regulations. These zoning regulations differ depending on your specific location and could include things like environmental standards and safety requirements.

It’s important to understand what regulations exist around creating proper truck parking in your area. This is necessary for finding the right location so that you can develop into a semi-truck parking business.

For example, your location might be restricted by residential neighborhood zoning issues, which prevent you from developing new truck parking lots.

Find the Right Location

When it comes to truck parking lots, location is everything.

You can offer high-quality facilities and great prices, but even the best truck parking spaces will stand empty if there’s no demand for them.

Make sure you develop your truck parking facilities where there are plenty of truck drivers actively looking for a place to stay. Of course, busier trucking routers have more demand, but that also means there’s more competition. Your goal is to strike the right balance between the two.

It’s a good idea to try to identify areas where there is a high rate of illegal truck parking.

These areas present a great opportunity for a proper truck parking facility, as there is likely a truck parking shortage in these parts.

Beyond demand, there are various factors to consider when choosing the right place for your truck parking lot. These include:

The truck parking space dimensions available on the lot
What type of construction will be required on the space
What types of amenities are available on the truck parking lot
The legal compliance requirements for developing that land into a truck parking lot
Insurance requirements for turning the space into a truck parking lot
What exit ramps will lead to your parking stall
Whether there’s enough space for trailer parking, semi-tractors, and freight transportation
Whether the area is secure enough for overnight parking

Consider Franchises and Business Options

Once you’ve identified the ideal place for your truck parking lot, you’ll need to establish what approach you will take in starting your semi-truck parking business. The first question to ask is whether you’ll be operating a franchise, or starting your own business. Both options come with their pros and cons.

Starting a franchise means you get access to an already-established brand. You will also get plenty of support in setting up the business according to a proven business model. The downside is that you have less freedom over what you can do with your truck parking lot. Starting a franchise can also be expensive.

Put Your Business Plan Into Action

At this stage, you should have a detailed business plan. Now, it’s time to unfold this plan and start implementing it.

You will need to discuss:

Finances: Ensure your truck parking lot has a detailed and sensible financial plan. Establish realistic financial projections and know what will be required to turn a profit. You may need to take on commercial financing to start the business.
Marketing: Know how you will market your semi-yard to attract truck drivers. This could include listing your business on truck parking apps, developing a strong presence in your area, joining truck driver networks, and developing a solid digital marketing strategy.
Get the right equipment: Your truck parking lot needs to be kitted out with the right amenities for fatigued truck drivers. This includes everything from restrooms to washing facilities and security cameras.

Establish Your Business

When you have a solid truck parking lot idea that you’re ready to execute, you’ll need to establish your business. This involves setting up the right business structure, applying for all of the relevant permits, and ensuring your truck parking business meets all of the right legal requirements.

At this stage, you might need to take on staff, set your business up with insurance, establish a brand, and so on. This is the part where your truck parking lot starts coming together.

Conclusion

There’s a lot of thought and planning that goes into establishing truck parking facilities. Get it right, and a semi-truck parking business can be a lucrative opportunity.

By carefully following the steps and considerations above, you should be able to establish the perfect truck parking lot business based on your interest, area, and market.

If you’re looking to purchase a semi for yourself, reach out to Mission Financial Services today.

How Hard Is It for Minority Truck Drivers to Obtain Financing?

Minority truck drivers often face unnecessary difficulties in securing financing for starting a trucking company. There shouldn’t be barriers in place preventing minority drivers from entering the transportation industry!

As long as you work with the right vehicle financing company, obtaining funding for your truck doesn’t have to be a challenge.

In this guide, we’ll explore whether minority truck drivers face funding challenges, and provide a step-by-step process on how to get around this.

Minority Truck Drivers: Who is a Minority Truck Driver?

Of all the truck drivers in the United States, over 84% of them are men, and over 58% are white. These trucking industry professionals are considered the majority.

Minority truck drivers refer to any professional driver that falls outside of this category. This includes women truck drivers, or truck drivers of different genders, sexualities, and racial backgrounds. For example, Latino or Hispanic, Asian, and Black truck drivers can all be considered minorities.

While these minority drivers were once a rarity in the transportation industry, trucking is becoming increasingly diverse. There’s greater minority representation across the industry, which means more career opportunities are presenting themselves for minority drivers in the trucking industry.

Is it Harder To Obtain Financing as a Minority Truck Driver?

Despite increasing diversity in the trucking industry, minority-owned trucking companies still face many added difficulties in securing financing. This is because minority groups tend to be marginalized socially and economically.

Some minority truck drivers face discrimination in the form of refusal to be assisted, while some may face harsher application requirements. Some minority truck drivers have a weaker economic background than others and will be disadvantaged by financing options that require a strong credit history or a long history of stable bank statements.

This makes it harder to obtain financing than those who are not marginalized.

With so many owner-operated trucking companies operating in the country, restricted access to funding can make it very difficult for minority truck drivers to pursue innovative ideas and start a transportation company. This will continue to create a divide in the trucking industry.

Obtaining Truck Financing as a Minority Truck Driver

While obtaining funding as a minority truck driver may seem like a major challenge, with the right financing provider it doesn’t have to be.

Mission Financial does not discriminate against minority truck drivers and works hard to help everyone secure vehicle loans. When buying a semi-truck with financing through Mission Financial, bad credit or a lack of financial history is not taken into account. This provides a far more equal playing field for any truck drivers to get into the industry.

Here are the steps you can take as a minority truck driver to easily gain funding for your transportation business.

1. Determine Your Eligibility

The first step in securing financing for your truck is to determine your eligibility. This is where most minority truck drivers have a hard time. With Mission Financial, earning your eligibility success is an easier process.

Four main factors are considered when determining your eligibility. These are:

Overall credit: Like with any financing provider, having a strong credit history will make it easier to secure funding. However, Mission Financial is a common sense lender, which means we consider more than just your credit score. This means we review your overall credit situation to understand your eligibility. Even if you have a bad credit history, it’s still possible to gain truck financing.
Down payment: The down payment required is based on the cost of the truck, and is usually around 20% – 30% of the truck’s purchase price. Mission offers financing on various older truck models, so paying a down payment on a brand-new truck is not necessary.
Time with CDL: The longer you’ve had your Commercial Driver’s License (CDL), the easier it will be to obtain funding. Drivers who’ve had their CDL for less than three years may need to pay a larger down payment.
Truck’s age: Mission Financial finances trucks that date back to 2000, so it’s possible to gain financing for a second-hand vehicle. However, it’s important to also consider the higher cost of maintenance and repairs if you do choose to finance an older truck.

2. Get Your Documents Together

Once eligibility has been established, you’ll need to prepare all of your documents for obtaining funding. This will help you quickly apply for a loan when you find the right truck.

Your documentation should include your:

Bank statements and tax returns
Your CDL
At least six references
Contact details
Proof of insurance

Depending on your employment situation, you may also need to provide:

A co-signer statement
LLC agreement and operating agreement
Articles of Incorporation and corporate resolution

3. Find Your Vehicle

When you are prepared to apply for financing, you’ll need to find your truck and negotiate its price. Make sure you carefully choose the right type of vehicle for the type of trucking business you plan to start.

4. Obtain Insurance

You’ll need to provide proof of insurance to finalize your truck financing process. Make sure to select the right type of insurance policy based on your vehicle and the type of business you operate.

5. Submit Your Documents

Once you have all of the above documentation sorted, you simply need to submit your documents to Mission Financial to get approved for truck financing.

Final Thoughts

If you want to quit your driving job and start your own trucking company, you’ll need to obtain funding. With minority truck drivers at an all-time high, there are various opportunities for new truckers to obtain funding and start their own trucking organizations.

This can help minority members of the industry achieve greater success!

By working with an organization like Mission Financial, anyone can obtain the funding they need. We have a commitment to providing fair funding opportunities to all professional drivers. Apply now to kickstart your trucking business success.