Semi Truck Insurance
Semi trucks, also commonly referred to as recreational vehicles, are known for carrying large loads of expensive and important cargo. These vehicles can weigh several tons and take up a lot of space on the road while traveling. Studies have shown that accidents that involve semi trucks usually have more automobiles involved, and the damages are typically greater. For this reason, a special type of recreational vehicle insurance is needed to ensure the cargo and vehicle body of a semi truck. Semi truck insurance is a type of liability insurance that protects trucking companies and independent truck drivers from expenses associated with repairs and damages caused by a collision or incident involving the insured truck. Consider the following paragraphs to learn about the various types of semi truck insurance, how much it costs, and how to find a suitable semi truck insurance policy.
Types of Semi Truck Insurance
There are various types of semi truck insurance policies and coverages offered, including but not limited to primary liability, physical damage, motor truck cargo, and non-trucking liability. Primary liability coverage is a federally mandated requirements that protects truck owners from damages caused by an accident, which typically provides anywhere from $30,000-$1 million in coverage. Physical damage coverage provides assistance in covering repair costs associated with any damage to the truck or trailer, such as that caused by natural disasters, collisions, or vandalism. Motor truck cargo coverage protects the liability of the driver to a certain extent in the event that freight is damaged or lost. Coverage limitations for this type of insurance usually range from $10,000-$100,000, however there are excessive truck cargo insurance plans available. Non-trucking liability insurance, also commonly referred to as “Bobtail Insurance”, provides protection for truck owners/operators when the vehicle is not being used to haul a load, and is therefore a type of umbrella insurance that is typically used to provide gaps in coverage within the primary plan.
How Much Does Semi Truck Insurance Cost?
The cost of semi truck insurance varies depending on a variety of factors, including but not limited to geographical location, driving history, and the credit score/business history of the trucking company or individual applicant. Although it is possible to find insurance providers that offer competitive rates and affordable solutions, semi truck insurance is generally more expensive than typical auto insurance. However, the amount of money that can be saved in liability judgments, court costs, vehicle repairs, and cargo replacements, could completely negate the benefits of yearly cost of semi truck insurance. Ultimately, even several thousand dollars per year is nominal in comparison to a several million dollar lawsuit or hundreds of thousands of dollars in replacements and repairs that could result from a semi truck collision.
Assessing Semi Truck Insurance Needs
When assessing the type of coverage needed it is important to first consider the state insurance requirements for semi trucks in your area. It is also important to consider whether or not you would need additional coverage for multiple drivers or singular coverage that is ideal for an independent driver with their own truck. Generally, companies or individuals that frequently haul large amounts of freight or cargo that is highly valuable usually require the most comprehensive semi truck insurance policies. The easiest and most convenient way to assess your semi truck insurance needs is to contact an insurance agent or broker and discuss your personal preferences, budget requirements, and typical driving scenarios to find a type of insurance or several coverage types that can meet your needs.