Equipment

Commercial trucking is a vital industry that keeps goods moving across cities, states, and countries. Grocery stores would go out of stock in three days if the trucking industry suddenly stopped operating.

Before reaping the rewards of owning trucking companies as the operating authority, you must meet the commercial trucking insurance requirements. With the right knowledge, you can ensure the best protection for your business, comply with legal regulations, and mitigate potential risks.

We’ll explore the types of insurance coverage, discuss their purposes, coverage specifics, and the importance of obtaining adequate coverage limits. So, let’s dive in and explore the essential insurance requirements that every commercial trucking professional should know.

Top Commercial Trucking Insurance Requirements

As a commercial trucking professional, understanding and meeting the insurance requirements is vital for the success and security of your business. Let’s unravel the key insurance requirements crucial for a thriving and protected commercial trucking operation.

Liability Insurance

Commercial auto liability insurance is a crucial requirement for commercial trucking operations. It covers damages or injuries caused by your truck while on public roads. There are two parts to public liability insurance, namely the following:

• Bodily injury: This coverage pays for medical expenses, lost wages, pain and suffering, and other costs associated with injuries to other parties involved in an accident caused by your truck. It helps protect you financially if you’re found responsible for causing bodily harm to others.
• Property damage: Your commercial truck insurance pays for repairing or replacing other people’s property damaged by your truck. It includes vehicles, structures, or any other property that may have been affected.

There are certain commercial trucking insurance requirements that you need to follow when running a trucking company. Let’s look at a few:

• Minimum coverage: The minimum liability insurance requirements can vary depending on the jurisdiction and the type of cargo you transport. Each jurisdiction typically sets its minimum limits for liability coverage. For example, it may require a certain minimum amount of coverage per accident, as well as a minimum coverage amount for property damage and bodily injury.
• Proof of insurance: It’s important to carry proof of liability insurance with you while operating your commercial truck. In most jurisdictions, you need to carry proof of insurance documents. This proof can be an insurance certificate or a card showing you have the required coverage.
• Additional considerations: Some requirements can also be influenced by the size and weight of your small-scale semi-truck and the cargo you’re transporting. Some jurisdictions may have specific insurance requirements for specialized trucking operations like hazardous materials transportation.

Liability insurance protects your business and personal assets in an accident. It’s essential to understand the specific commercial trucking insurance requirements and consult with insurance professionals to ensure you have the proper insurance coverage for your trucking company.

Cargo Insurance

Motor truck cargo insurance is a specific type of insurance coverage crucial for commercial trucking operations involving the transportation of goods.

This physical damage coverage protects the cargo that you’re hauling in your truck. It provides coverage if the shipment is damaged, lost, or stolen during transit.

Let’s look at how cargo insurance works:

• Coverage: Cargo insurance typically covers a range of risks that can affect the cargo in transit. It includes damages caused by accidents, theft, vandalism, fire, natural disasters, and other unforeseen events.
• Types of cargo: Cargo insurance can be tailored to the specific goods you’re transporting. Whether it’s general merchandise, perishable goods, hazardous materials, valuable items, or specialized cargo, insurance options are available to suit different cargo types.
• Coverage limits: The coverage limits for cargo insurance depend on the value of the cargo being transported. It’s essential to accurately estimate the value of the goods and ensure that your coverage adequately protects their worth.

The coverage limits for cargo insurance depend on the cargo’s value. It’s essential to accurately estimate the value of the goods and ensure that your coverage adequately protects their worth.

Bobtail Insurance

Bobtail insurance, or non-trucking liability insurance, is a type of insurance coverage designed for commercial truck drivers who operate their vehicles without a trailer or while not under dispatch.

• Coverage: Bobtail insurance covers bodily injury and property damage liability. If you cause an accident while bobtailing, this insurance helps cover medical expenses, property repairs, legal fees, and other associated costs.
• Difference from liability insurance: Primary liability insurance covers your truck while you are under dispatch. Bobtail insurance extends coverage to your vehicle during non-business or off-duty situations.
• Employer coverage: If you are a leased driver, your motor carrier may provide primary liability coverage while you’re under dispatch. However, once you’re off-duty or bobtailing, that coverage may not apply. Bobtail insurance helps fill that gap and provides coverage during non-business use.

• Insurance requirements: Some motor carriers or contracts may require you to carry bobtail insurance as a condition of employment. It ensures adequate coverage when operating the truck outside of business-related activities.
• Cost and coverage limits: The cost of bobtail insurance can vary based on factors such as your driving record, the value of your truck, and the coverage limits you choose. The coverage limits should be sufficient to protect you in case of an accident.

This is an essential insurance for owner-operators or leased drivers who use their trucks for personal use or when returning to their base after completing a delivery. It offers protection when the truck is not actively engaged in business-related activities.

Final Thoughts

Understanding commercial truck insurance requirements is essential for anyone involved in the trucking industry. Whether you’re an owner-operator or a leased driver, these requirements help ensure compliance, protect your business, and minimize potential risks.

Commercial trucking Insurance requirements can vary by jurisdiction, cargo type, and the nature of your trucking operation. By following these commercial trucking insurance requirements, you can confidently choose the right insurance company and operate while protecting your assets.

At Mission Financial Services, we can help you get started in the exciting world of operating trucking companies. We can also point you in the right direction for commercial truck insurance for small businesses. No matter your credit score, get in touch to find out how.

Buying a semi-truck can be a complicated process – especially if you buy semi-trucks directly from the owner.

You need to make sure that the truck is suitable for your needs, in good condition, and that the price is right. You also need to ensure all documentation and legalities are sorted before proceeding with the purchase.

To help you buy a semi-truck for sale by owner, this guide outlines all the steps and considerations you need to make.

Used Semi Trucks For Sale By Owner: The Guide

Research and Budgeting

Before you start searching for used semi trucks for sale, determine your budget and the type of truck you need. This should depend on the type of semi-truck business you run, the type of cargo you plan to haul, and the length of the routes you plan to run.

If you plan to do long routes, then look for semi-trucks that have all the required features for sleeping, eating, and driving. If you plan to haul goods over short distances, then you may need a more simple truck.

Of course, you’ll need to consider factors like the truck’s age, mileage, make, model, and any specific features you require. All of this should be planned. Otherwise, you will face a wide selection of trucks that don’t fit your requirements.

When researching for semi-trucks for sale by owner, be sure to also consider the insurance costs and add this to your budget. Planning this will help you establish a clear budget. Now, you can start saving for a down payment on this – usually around 10%.

Finding Trucks for Sale

Now that you know what you want, you can start to search for semi-trucks for sale by owner.

There are many different places that truckers can look when buying used vehicles. Look for used semi trucks being sold by owners through various channels, such as online classified ads, trucking forums, social media groups, and local newspapers. Websites like Craigslist, Truck Paper, and Commercial Truck Trader are also great resources.

Finding the right truck should be relatively straightforward if you have put enough planning in because you can simply look for a vehicle that matches your specific requirements and price within your location.

Ideally, you’ll look for manufacturers and models that you are familiar with.

Once you have found a few suitable semi-trucks, get in touch with the owner and arrange to check the truck out.

Request a Vehicle History Report

Once you’ve found a truck and seller that looks good, you need to make sure that the vehicle is trustworthy.

Always request a vehicle history report for any truck you’re interested in. This report will provide vital information about the truck’s accident history, title status, and odometer readings. Services like Carfax or AutoCheck can help you obtain these reports.

It’s also important to ask the owner for maintenance records and service history. Regular maintenance is crucial for the longevity of a truck, and well-documented records indicate a well-cared-for vehicle.

When you search for semi-trucks for sale by owner, there’s a lot more risk involved compared to purchasing from a reputable company. As this is such an expensive investment, you need to make sure that you carefully research any vehicle you find before you buy it.

Inspect and Test Drive the Truck

Arrange to inspect the truck in person before making any commitments.

Look for signs of wear, rust, mechanical issues, and damage. Check the engine, transmission, brakes, tires, fuel filters, and other critical components. This could help you pick up on potentially expensive issues – like bad shocks.

If you’re not knowledgeable about trucks, consider hiring a professional mechanic to inspect them. This could end up saving you a lot of money and headaches.

Take the truck for a test drive. Evaluate how it handles, accelerates, and brakes. Pay attention to any strange noises or vibrations during the drive. Pay attention to how clean the truck is too, as this could be a signal for how well-cared for the truck is. Make sure you have a complete understanding of the model before you choose to buy it.

Consider all the Ownership Costs

As mentioned earlier, your budget must include all the costs of owning a truck. These extend beyond the truck itself and include things like cargo handling equipment, insurance, and semi-truck parking costs.

Consider the overall cost of ownership, including insurance, fuel, maintenance, and potential repair expenses. Factor these costs into your budgeting and decision-making process.

Prepare for the Purchase

When you find the right truck, you’ll need to get all the documents ready and prepare for purchase.

Ensure that the truck’s title is clear and that there are no outstanding legal issues with the vehicle. Verify that the necessary paperwork is for a smooth ownership transfer.

Always have a written purchase agreement that outlines the terms of the sale, including the agreed-upon price, conditions, and any warranties or guarantees.

Secure Funding

Finally, you’ll need to secure a loan for buying a semi-truck. Mission Financial makes this process easy, as any truckers can find semi-truck funding that matches their needs – even with a bad credit score.

Get in touch with us to get a quote and see how easy it is to find funding for a used semi-truck.

Insurance, Registration, and Licensing

Once you own the truck, complete the registration and licensing process in your state or country as required. You’ll also need to make sure your truck is properly insured from day one.

Once this has been done, the semi-truck is ready for you to drive away.

Conclusion

Buying used semi-trucks is a great way to save money. When you follow the right process and properly research and inspect the vehicle, finding the perfect truck is easier than you think.

Be sure to follow the steps outlined above, and take your time looking for a used semi-truck. With a careful buying process in place, you should be able to find a truck that matches all of your requirements. Reach out to Mission Financial Services if you have any questions!

If you’re looking to know all you can about commercial vehicle insurance cost, read on.

If your company owns and uses vehicles for business operations, you most likely need commercial auto insurance coverage. It’s legally required in most states.

On average, commercial vehicle insurance costs around $147 per month for each vehicle. You could pay more or less, depending on your type of vehicle, and coverage limits, among other factors.

Learn more about commercial vehicle insurance and its costs below. We’ll also share practical tips to help you save money when getting insurance coverage for your company vehicles.

What Is Commercial Vehicle Insurance

Commercial car insurance is a form of auto insurance designed for vehicles conducting business operations. You and your insurer get into an agreement outlining how the insurance company will compensate you for any financial losses related to an accident.

It’s different from personal auto insurance, although both offer personal injury protection. Personal car insurance policy only covers claims related to non-business use. You can’t rely on this type of insurance coverage if you or your employee needs to pay for any damages after causing an accident.

Without commercial insurance, your business will have to cater for any legal and medical expenses out-of-pocket, which can be expensive.

How Much Does Commercial Auto Insurance Cost

The cost of commercial auto insurance ranges from $50 to $200 per month, per vehicle, averaging out at about $147, as noted earlier. That’s around $600 to $2400 annually for a standard car used for commercial purposes. Other types of commercial vehicles will require you to pay more.

Here’s what you should expect to pay annually to insure different types of business vehicles:

• Box trucks/ Delivery vans: $3,300 to $6,200
• Taxis/ Limousines: $4,000 to $10,000
• Semi-trucks: $8,000 to $12,000
• Commercial bus: $35,000+

Besides the type of business vehicles you own, six other main factors affect how much you’ll pay for commercial car insurance.

Factors Affecting The Cost Of Commercial Vehicle Insurance

Insurance providers use different aspects of your business to set commercial auto insurance rates. Some of these include:

Type Of Coverage

The type of commercial auto coverage you choose will affect your commercial vehicle insurance cost. By law, the basic coverage required in most states is auto liability.

Auto liability is the lowest-cost property damage and bodily injury liability insurance coverage. It helps pay for physical damages to another party’s vehicles or property and their medical expenses when your company vehicle causes an auto accident.

In addition to auto liability, you may purchase any of the following commercial auto insurance covers. Each additional coverage increases your commercial auto insurance costs by a different amount, which varies from one insurance provider to another.

• Collision coverage: Pays for damages to your vehicle after an accident, whether you were at fault or not.
• Comprehensive coverage: Protects your company vehicles against theft and other non-collision damages, like fire, vandalism, and certain weather events.
• Uninsured motorist coverage: Covers vehicle damage and medical costs for victims of an accident caused by someone uninsured.
• Hired and Non-owned liability coverage: Pays for property damage if you use your vehicle or rented car for business purposes.
• Rental reimbursement: This covers the cost of renting a vehicle for a specific period, outlined in your commercial policy
• GAP protection: This covers you if you lose your vehicle before you finish paying it off. You’ll get the difference between your vehicle’s actual cash value and your loan’s unpaid net balance. To learn more about this and other additional coverage options, check out Mission Financial Services’s add-on coverage offers.

Extent Of Coverage

Commercial auto insurance costs for small business owners with several commercial vehicles and drivers are higher than those with one business vehicle and one driver. The more vehicles or drivers you need to insure, the higher the costs will be.

Coverage Limits

When you purchase coverage, you must determine your coverage limits. Most states have a minimum amount of liability coverage you have to meet. In Illinois, for example, commercial auto insurance policy minimums include:

• $25,000 bodily injury liability per person
• $50,000 in bodily injury compensation per accident, and
• $20,000 property damage liability

Often, state minimums are not always enough to cover insurance claims fully. You’ll almost always have to get higher coverage limits for better protection. Higher limits require higher insurance premiums.

Also, these varying state minimums mean that your location affects your commercial car insurance cost.

Deductibles

Most commercial vehicle insurance policies have deductibles – an amount you must pay out-of-pocket for any claim you face. This affects your commercial auto insurance cost. Higher deductibles reduce your insurance rates, while lower ones increase them.

Type of Business

Your primary business activities and the industry you operate in also affect your commercial auto insurance costs. You’ll pay more to insure vehicles constantly on the road and those operating in industries considered high-risk for accidents. The type of cargo you haul and the distance or miles you cover also contribute to your cost of commercial auto insurance.

For instance, commercial car insurance costs for trucks transporting hazardous materials are higher than for pick-up trucks used for delivery services occasionally.

You’ll also pay more if your company drivers make interstate trips or travel long distances.

Employee Driving Records

When calculating commercial car insurance policy rates, auto insurance companies review your employees’ driving records. Your commercial auto insurance cost might be higher if you have a history of speeding tickets, accidents, or other traffic violations.

In contrast, if all your drivers have a clean driving record, you’ll enjoy lower commercial auto policy rates.

How To Save Money When Getting Commercial Insurance

• Choose high deductibles. As mentioned earlier, higher deductibles lower your commercial auto policy rates. You’ll save money on cheaper monthly premiums.
• Vet your drivers and maintain a good driving record. Vetting your drivers ensures they have clean driving records, so you get cheaper commercial vehicle insurance rates. To keep these rates low, motivate your drivers to continue driving safely by offering incentives, including bonuses.
• Install driving GPS trackers. You will likely qualify for huge discounts if you install trackers and observe other safety measures, like parking in a secure location. In addition to protection against theft, GPS tracking helps you monitor your drivers while on the road. Insurance providers interpret this as a safe driving practice and will offer lower rates.
• Check your company vehicle safety features. As a standard practice, commercial vehicle insurance companies base their rates on the safety features of your company vehicle. These features include automatic brakes, airbags, and rearview cameras. The safer your car is, the lower your commercial car insurance costs and the more you’ll save.
• Bundle your vehicles as a fleet. If your business owns several vehicles, bundle them as a fleet. Some insurance providers offer discounts for fleets.
• Pay your premium upfront. Most commercial auto insurance companies offer discounts when you pay your annual dues in a lump sum.

Conclusion

Commercial car insurance is a must-have if you use your vehicles for work. It’s a safety net for your business, preventing you from spending thousands of dollars in settlement and other costs in case of an accident.

To get the best commercial auto insurance, evaluate your business needs first. You want to get the best auto insurance coverage without buying more than your business requires.

Once you understand your business needs, compare multiple commercial auto insurance quotes. Read the fine print of each quote to understand what’s covered, how much it costs, and whether it aligns with what you’re looking for.

Check out our blog to learn everything you need about commercial insurance for small businesses.

One of the most important decisions to make when purchasing a semi-truck is getting the right commercial truck insurance policy in place. When choosing between different insurance companies, you’re bound to consider Progressive Commercial truck insurance.

Progressive Commercial is the most popular business auto insurance provider in the States. The company offers a wide range of flexible insurance plans and areas of specialization to keep all kinds of truck drivers protected.

This guide covers everything you need to know about Progressive Commercial truck insurance.

Progressive Commercial Truck Insurance

Progressive Commercial is the biggest commercial truck insurance company in the US. The insurance company provides versatile, flexible coverage options for commercial truck drivers. They also provide various payment options, free filings, expert support on commercial trucks, and more.

Progressive Commercial has been offering truck insurance for over 50 years. The company insures practically any kind of truck across all states. This makes it a practical choice of insurance for any kind of commercial truck driver.

What Does This Insurance Offer?

Being the largest auto insurance company in America, Progressive Commercial specializes in many different types of commercial truck insurance. This includes specialist insurance for the following:

Owner Operators

If you operate as a truck driver under your own authority, or if you’re leased to a motor carrier, then Progressive Commercial has truck insurance plans that are suitable for your needs.

Being an owner-operator is tricky, as it typically means you only have a single vehicle to take care of. The flexible plans offered by progressive Commercial truck insurance make things easier for owner-operators.

Motor Carriers

Any for-hire trucking operators can also get specialized insurance plans through Progressive Commercial. This is ideal if you run any kind of for-hire semi-truck business.

Progressive Commercial truck insurance plans include many different options to match the needs of your for-hire trucking business. This includes plans for individual vehicles as well as for large fleets.

Private Carriers

Whether you haul goods for your own trucking business or for an employer, then Progressive Commercial offers comprehensive plans that can handle your insurance needs.

Customized Truck Coverage

In case you run a different kind of trucking business or have specific insurance needs, Progressive Commercial also offers customized coverage.

Some of the truck-specific coverages available include insurance for:

• Motor truck cargo
• Motor truck general liability
• Non-trucking liability
• Heavy truck roadside assistance
• Rental reimbursement with downtime
• Trailer interchange insurance

This means you can get a fully comprehensive commercial auto policy for whatever specific needs your business has.

Ultimately, any kind of truck driver or trucking company can get the right protection with the various policies and areas of specialization offered by Progressive Commercial.

Heavy Truck Claims

Progressive Commercial offers expert truck claims services. This is one of the things that sets this commercial insurance company apart.

Progressive Commercial offers a highly specialized team, knowledgeable about commercial truck claims. Their team of adjusters is entirely in-house and manages the commercial truck repairs process from start to finish.

Progressive Commercial also offers a wide range of pre-approved repair shops. This large network of repair shops gives Progressive Commercial customers priority status. This makes it easy to handle your semi-truck repair process and get your truck back on the road as soon as possible.

State and Federal Filings

Progressive Commercial offers state and federal filings. These insurance filings act as a guarantee to the government, showing that you have the right insurance coverage for your vehicle. This is essential for running a trucking business.

Once the authority has been filed, Progressive Commercial truck insurance handles the rest of the process. This makes it easier to manage the admin side of your business – leaving you more time to focus on the road.

How Much Does Progressive Commercial Truck Insurance Cost?

Of course, the cost of your business auto insurance is a major factor you need to consider.

Every insurance company offers different rates, depending on your specific insurance plan. Your truck insurance quote will also depend on factors like the gross vehicle weight, your coverage limit, whether the insurance covers medical expenses, how long you’ve had your commercial driver’s license, and so on.

The national average monthly cost for Progressive Commercial hire specialty truck insurance ranges from $736 for vocational truckers to around $1125 for other types of transportation truckers.

Every insurance quote is different, based on various factors surrounding your trucking business, The main factors that will influence your insurance costs include:

• USDOT inspection history
• Coverage requirements
• Vehicle type
• Cargo
• Operating radius
• Driving history

Progressive Commercial’s bill plans are competitive, with low down payment options. The company also doesn’t include interest on monthly installments as they do not rely on external premium financing.

Progressive Commercial Truck Insurance: Savings and Discounts

Progressive Commercial also offers various special discounts and options for saving on your commercial truck insurance policy. These options include:

• The Smart Haul Program lets truckers save on their payments by using an electronic logging device (ELD) that provides the insurance company with access to the driving data.
• The Snapshot ProView saving option that lets truckers save at least 5% on their commercial insurance policy. This is available to truckers without an ELD.
• Business Experience Discounts that are available to trucking businesses that have been operating for over three years.
• Commercial Driver’s License (CDL) discounts let for-hire truckers save by simply having the right license.

It’s worth exploring these different discounts and saving options if you pursue business auto insurance with Progressive Commercial.

Conclusion

Choosing the right commercial truck insurance policy is a critical step when purchasing a business vehicle.

It’s so important to compare quotes from different insurance providers and understand exactly what type of coverage and specializations you need from your insurance policy. Progressive Commercial offers an extensive range of solutions for all kinds of trucks and truck drivers.

Of course, you’ll also need to use the right commercial vehicle financing provider when purchasing a truck. Get in touch with us at Mission Financial, where we help truck drivers of all backgrounds finance their ideal vehicle.