7 Considerations for Insuring a Commercial Truck

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For people who are acquainted with purchasing insurance for their personal vehicles, the process for buying insurance for a commercial truck will not seem too unfamiliar. The big difference is in the size of the policy and its cost. Like anything in the business world, insuring trucks can come with a scary price tag.

You need to know the type and size of truck that you will be insuring.

While the make of the truck does not always have the same effect on insurance rates that the type of car does, it can be a factor in premium costs. The size of the truck does make a difference. Larger trucks cost more to repair, are harder to stop, carry more freight, and can do more damage quickly than small light weight vehicles. All of these items spell additional cost to the insurance company when picking up the cost of an accident. Some consideration is necessary for the owner to take comprehensive car insurance covers you for damages. The amount should be less with the insurance policies to get the benefit. Additional charges are not charged to meet with the requirements of the owner. The terms and conditions should be read through the person to take the policy. 

Plan to be asked how the truck will be used.

Commercial trucks range from pickups supplied to field supervisors up to those mega-trucks pulling three trailers down the highway. If the truck is to be a personal vehicle for an employee, it will not be a lot different to insure than your car. Delivery trucks, work vehicles, and those that haul freight across country are a lot different.

How many miles will the truck travel in a year?

Lightly used vehicles will cost less to insure. Also, if the truck will not be used regularly in dangerous neighborhoods, it will make a difference. If the truck will be covering hundreds of thousands of miles every year, it will increase the chances of something happening that will result in a claim.

The type of freight that is hauled will influence premium rates.

For those trucks that will only be hauling toys, tools, or non-explosive cargo, the insurance company can offer better rates because the liability is so much less. Tankers that haul fuel or other explosive cargo are a huge risk in the event of an accident. The cost of the vehicle can be very minor compared to the size of ensuing lawsuits from a collision with one of these monsters.

Maintenance and the skill of the driver can be a factor.

If you can prove that the truck is well-maintained and driven by expert safe drivers, you will save many dollars. However, if you cannot verify this to the insurance company’s satisfaction, you will be penalized. Keep your vehicles in better condition than the state requires to get lower insurance rates.

Always get multiple quotes for the coverage desired.

Insurance rates can vary significantly from insurer to insurer. Just this one item can save up to thousands per year depending on the type and use of truck you are insuring. Try to get at least three quotes. Five is better.

You need insurance to cover your company’s assets and the cargo being carried.

When lawsuits happen, they eye the financial assets of the company to decide on how much to seek in damages. Your policy needs to protect your company’s total assets. Customers have a right to expect you to repay them for damaged cargo entrusted to your care for shipping. If you are not experienced in purchasing these types of policies, interview some of your competitors and numerous insurance agents to become educated before making your final decision on an insurance policy and company. You need to be sure that your insurer has a good history of paying claims on a timely basis.