As mentioned earlier, truck insurance is an extremely complicated field that varies state by state. Luckily for you, we have done some of the work for you!
In this article, we will go over all the different types of commercial vehicle insurance policies in one place – State Auto. We will also talk about what to look out for when buying coverage as well as how to reduce your premiums due to things like safety records and violations.
State Auto has several tiers of coverage depending on the needs of the business. This includes low liability, medium liability, full coverage, and even customized policies! They are very popular with entrepreneurs because they offer very comprehensive coverage at affordable prices.
Who is covered under commercial truck insurance?
The term “commercial vehicle” means any self-propelled motor vehicle or trailer not designed exclusively for passenger use, regardless of size. This includes trucks, vans, recreational vehicles (RVs), tractor trailers, and semi-tractors.
Most states require you to carry liability coverage at all times while your vehicle is registered and operational. However, most states also have special requirements for additional coverage such as cargo policy, flatbed policy, and collision policy.
These add-on policies are typically only required when your truck is being used for business purposes. For example, if you own an RV that you use for work during off hours, then it does not need cargo policy. But if you hire someone else to drive your truck, they would probably want this type of coverage. Cargo policy covers damage caused by goods in transit, and flatbed policy protects their theft. Collision policy guards against physical loss due to accidents.
What are the different coverage under commercial truck insurance?
Most states require you to have at least liability coverage, but most don’t require much beyond that. In fact, some states do not even require collision coverage. However, this isn’t very helpful if you get into an accident because you won’t be covered truck insurance!
In addition to those three main types of coverage, many states also require you to have cargo or special use coverage. This can help protect your business from lawsuits related to someone bringing their vehicle or product along with them when they leave your service site.
However, like collision coverage, these can cost extra money so make sure to check out all of your policy options before buying one that is expensive or unnecessary.
What are the different types of trucks?
Trucks come in many shapes and sizes, but they all have one thing in common – you can’t drive them without truck insurance. That means that truck coverage is very important to understand!
Trucks fall into three main categories depending on how fast they go. These are “commercial passenger cars or light duty vehicles (LCV), medium duty vehicle (MDV) and heavy duty vehicle (HDV).”
An LCV has less than 3,000 pounds of cargo capacity so it is considered a small business motor vehicle. An MDV has more than 3,001-7,500 pound cargo capacity and is designed for commercial use such as hauling goods. A HDV has more than 7,501 pounds of cargo space and is designed to be used exclusively for transportation.
This article will talk about what differences there are between each type of vehicle and why this matters when buying truck insurance. It also talks about some additional tips for drivers who want cheap car insurance.
What are the different types of insurance policies?
Commercial vehicle owners typically have one type of policy to cover them. This is called commercial motor vehicle (CMV) coverage. CMV covers you for all sorts of things, such as damage or loss caused by your truck while it’s being driven for business purposes.
It also includes coverage if someone else uses your car for their job and they get into an accident. They would be covered under their personal auto policy, but extra costs could arise due to additional liability claims.
These add-on benefits are important to know because unfortunately, not every employer requires these protections.
What are the different costs of insurance?
The next major cost for most commercial trucks is their insurance. This includes liability, property damage, coverage limits, etc. There are many factors that determine how much your truck insurance will be per year.
Liability insurance covers you as an individual or business owner for accidents caused by you or your vehicle. This can include things like accident causation, medical bills, lost wages, etc.
Property insurance covers the damages done to other vehicles or buildings due to an accident. This usually excludes the loss of use of the damaged vehicle!
Coverage such as personal injury protection (PIP) and collision coverage help with injuries and car repairs respectively.
License plate fees and documentation expenses are also part of this cost. These are run through state departments so make sure you’re aware of what each one charges.
Note: Most states have special requirements for cover able drivers.
What are the different states with commercial truck insurance regulations?
In some states, like California and Texas, it is illegal to operate a vehicle without adequate coverage. This includes personal liability for drivers, passengers, and other parties involved in an accident with you or your business.
In these states, you will be required to have certain levels of coverage. These coverage include bodily injury liability, property damage liability, under insured motorist (UIM) coverage, and cargo policy endorsements.
Most states require at least one-year level minimum mandatory UIM coverage. This covers anyone who suffers injuries due to someone else’s negligence that has zero or very little coverage.
Some states also require what is known as “trucking mode” requirements. These regulate how many hours you can work before requiring another driver license. More than five working days per week requires a special endorsement on your policy called “transportation operator.
What are the different violations and their consequences?
The three most common reasons to have commercial auto insurance policy violation is for failing to maintain adequate coverage, operating under an expired license or registration, and having no proof of financial responsibility.
In each case, the driver’s ability to operate a vehicle can be immediately suspended- with very harsh penalties including fines, fees, suspension or revocation of driving privileges as well as denial of access to vehicles and equipment needed to fulfill job responsibilities.
These sanctions can have significant negative impacts on a driver’s livelihood so it is important to understand what happens when you violate your commercial motor carrier (CM) liability insurance policy!
What people often do not realize about CM policies is that they typically offer much lower limits than personal automobile policies. For example, instead of $1 million per person and $2 million per occurrence, typical commercial trucking liability policies only contain either 10% more in bodily injury coverage or 5% more property damage coverage.
This means if someone gets seriously hurt due to negligence related to your truck, their chances of receiving adequate compensation drop drastically. These low coverage limits also mean that even small claims will likely go unpaid which further weakens your company’s reputation.
It is essential for professional drivers to research their own policy limitations and potential liabilities before getting into work every day.
What are the different points to check when buying insurance?
As mentioned before, it is important to understand what types of coverage you have with your current policy and what kind you need as an owner or driver of a commercial vehicle.
There are several things that can be checked during the renewal process for this information. The coverage you have now may not be enough, so it is important to make sure everything is up to date!
You will want to verify that you have adequate liability coverage, personal injury protection (PIP) benefits, roadside assistance, cargo coverage, and business auto coverage. All of these items depend on where you will be driving and what type of goods you will be transporting.
These policies can easily be found through most major car insurance companies.