A Guide to Fleet Auto Insurance – What You Need to Know

Transporting cargo is a very lucrative but also dangerous and pricey business. So, whether you own a fleet of trucks, are a 100% owner-operator, or run a business that uses these vehicles to deliver goods, you need insurance to protect your investments and the investments of your clients. However, finding the right type of fleet auto insurance at the right rate can be tricky. In this blog, we will go over the various aspects of trucking insurance policies so that you can understand and pick the one that works best for you.

Best Insurance Plans for Trucking Companies

Companies of varying sizes, fleet configurations, and transported commodities require varying levels of protection from their commercial truck insurance providers. Listed below are the most frequent kinds of commercial auto insurance that you can consider depending on your requirements.

  • Primary Liability Insurance: Having this commercial vehicle insurance in place will protect you financially in the event that your truck causes bodily harm or property damage to another person or entity while on the road. In order to legally operate a trucking company in the United States, you must obtain this insurance.
  • Full Coverage Truck Insurance: This is the best choice if you want to save money by just having to pay for one policy. On the other hand, fully comprehensive insurance may cover stuff you’ll never need. This implies you may be paying more than necessary for a layer of security. It is possible to minimize your prices for truck insurance without sacrificing protection by tailoring your policy’s coverage.
  • Damage Coverage: Repairs to commercial trucks damaged by fire, hail, flood, or any other natural calamity are covered by the physical damage insurance. This commercial truck insurance policy also includes coverage for the cost of a replacement vehicle in the event that yours is damaged beyond repair. This is a must-have policy for businesses operating in the transportation and logistics industry.
  • Cargo Insurance: The items you are transporting are protected against loss due to collision, fire, or strike with this cargo insurance. This commercial vehicle insurance safeguards your goods in the event that your truck breaks down due to, say, an ice storm or excessive traffic. This type of insurance is extremely important. It will not protect your business but also enhance customer trust in your services. This coverage may include theft, hijacking, spilled goods, water damage, loading/unloading coverage, etc.
  • Worker’s Compensation: If you have workers, you must comply with the laws of your state regarding worker’s compensation insurance. This type of insurance provides financial security and legal defense in the event of an employee’s illness or injury sustained on the job. Consider worker’s compensation insurance not only for your truck drivers but also for other ground staff that you may have on your team.
  • Downtime Coverage: Lost income due to repairs or other issues is covered by downtime insurance, which also reimburses you for rental expenses. The expense of renting a truck may also be covered.
  • General Liability Insurance: This insurance shields your company from lawsuits stemming from events that didn’t involve a vehicle. Slip-and-fall accidents and incorrectly loaded deliveries are only two examples of the kind of mishaps that this policy protects against. While this insurance doesn’t have anything to do with trucking operations, it is extremely important and can protect your business in several ways.
  • Bobtail Insurance: Many businesses, particularly owner-operators, use their vehicles for purposes other than business. With bobtail insurance, when you use your vehicle for personal reasons on non-work days, you can rest easy knowing that you’re covered by non-trucking insurance coverage.

These are only some of the most common types of insurance alternatives available to transportation businesses and owner-operators. Several other options may be available, such as medical payment for commercial truck drivers and riders, trailer interchange, etc. Premiums might range in price as well. Therefore, it is advisable to talk to a reliable truck insurance company if you need help deciding between several truck insurance plans or if you want to discuss tailoring your coverage.

Evaluating the Need for Commercial Trucking Insurance

The potential for injuries, accidents, and lawsuits against your company is directly proportional to the type and amount of insurance protection you require. Now that you understand what different insurance types have to offer, it’s time to choose the one that would be best for you. This requires evaluating the dangers you may be exposed to.

Think about all the dangers you face in the trucking sector in addition to the general hazards, such as injuries and lost wages. Let’s say what the chances your fleet may get grounded for several days due to the ice storm are, or there’s an accident and cargo spills on the road leading to high cleanup costs.

Furthermore, also keep in mind that fleet insurance policies for freight brokers should be tailored to the unique dangers they confront in comparison to those faced by for-hire truck drivers. Your coverage requirements will vary depending on the truck you drive, the goods you transport, and the routes you take.

Finding the Right Coverage: What Are Your Options?

When you are in the market for fleet and commercial trucking insurance, there are different ways to go about finding the right insurance. You can work with an insurance broker, contact a service provider directly, or look for options online.

Insurance Broker

A broker might be thought of as a well-connected acquaintance who is paid on commission. They’ll take the time to learn about your company and its insurance needs, and then they’ll find you competitive offers from different providers. Trucking newcomers might benefit greatly from working with a broker.

Fleet insurance brokers aid in making sense of your policy options and coverage requirements. They work on commission, which means they bring their best game to the table to help you find the perfect policy. Plus, having a single contact saves time compared to making individual calls to each provider.

However, insurance brokers charge a fee for their services, and sometimes, they may not look for the lowest possible rate. This makes it important to work only with reputable insurance brokers who prioritize their clients.

Online Marketplace

Online marketplaces for insurance are quickly emerging as a popular option. You can compare different providers online. After filling out an online form, the website will give you insurance estimates and plans from a variety of companies. Among the benefits is the independence to look for insurance whenever you like, not just during regular work hours. However, when you need assistance, you will usually have to talk to a real person.

Also, keep in mind that when you request insurance quotes at an online marketplace, only companies who work with the marketplace will respond. In most cases, the insurer is responsible for handling claims, answering client questions, and updating policies, which can mean a lack of standardization.

Contact Service Provider Directly

To avoid paying extra fees, it’s best to buy insurance straight from the company. You can acquire a quote either online or over the phone, depending on the service provider. Know that some service providers outsource insurance to a separate company. In such cases, commercial truck insurance is handled internally, while the company’s general liability policies are provided by a different insurer. If you bundle your auto and personal insurance, you’ll save money and enhance ease of operation.

Another advantage is that you can get a quotation and coverage quickly when working with the company directly. But in some cases, you might not be able to get the individualized assistance you need to choose the best plan for your specific circumstances.

Insurance Company Comparison

Regardless of the type or communication methods you choose, it is essential to learn how to compare different insurance companies. The cost of commercial insurance for trucking companies can vary greatly amongst insurers, even for identical policies. Take into account the following criteria while contrasting different insurance plans for trucking companies:

  • Your premium and deductible are the two primary costs to think about when it comes to pricing. Typically, premiums are paid annually, though monthly installment plans may be available. Premiums may be discounted if paid all at once. However, you should still check with your insurer.
  • What does the policy cover, and what does it not cover? Note that different service providers may offer different levels of coverage.
  • What is the limit of liability? It entails the maximum amount of money an insurer will pay out for any given incident, as well as the total amount of money they will pay out over the duration of your policy. Coverage limitations can be changed to better suit individual needs. Greater coverage results in higher rates.

Partner with RSB to Safeguard Your Business

If you are an owner operator looking to safeguard and enhance your business, RSB may be able to help you out. We are one of the top logistics and transportation firms in America. The well-being of our clients and business associates is of the utmost importance to us.

Join the RSB team in its mission to improve the trucking and transportation industry for everyone. We may also discuss your fleet auto insurance options. To learn more about RSB and the possibilities in logistics and dedicated freight, please visit our website or contact us at 866-616-7540.

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