Driving a commercial truck like a car hauler under your own authority is an exciting step in your career. You want to do everything right and may wonder if you need to carry larger amounts of auto liability insurance and cargo insurance now that you are no longer leased to a motor carrier. The answer to this question is a definite yes.
Federal Motor Carrier Safety Administration (FMCSA) Requirements
You also need to understand the insurance requirements for auto haulers. The FMCA requires all auto haulers to have at least one million dollars in liability coverage. This is despite the fact that it has established a minimum coverage baseline of $750,000 for general operations.
You should plan on at least $100,000 for cargo insurance. However, the exact amount you should obtain depends on many individual factors. Somewhere between $150,000 and $500,000 of cargo coverage might work for your business. You also need to consider that your state of residence may impose laws on the minimum amount of cargo coverage that you must carry. It is also possible that some of the contracts you have will require you to carry a minimum amount of cargo insurance. Pay attention to these requirements.
Factors that determine how much you pay for cargo insurance as a car hauler.
Insurance companies understand that no two auto haulers are the same. They collect a lot of information from you in order to provide you with the most comprehensive coverage to meet your needs. The factors below are just some considerations that can affect how much cargo coverage you must have as a car hauler with your own authority and how much you will pay for it.
- The type of business you operate
- Whether you typically haul new, used, or salvage cars
- How far you normally drive to deliver a load of vehicles
- Whether your contracts require specific amounts of cargo coverage
- The year, make, and model of your car carrier
- The number of auto hauling trucks you own and operate
- The individual records of your drivers
- Your company’s collective number of accidents and traffic tickets
Be certain to have the right coverage for your cargo.
You need to make sure that you have the right cargo insurance to truly protect your business in the event that the vehicles you’re hauling are destroyed. Don’t underestimate the importance of having enough cargo insurance – and the importance of understanding exactly what your cargo insurance will cover. You’re hauling vehicles, which are very expensive, after all. Make sure that they’re protected.
Take the first step towards getting the car carrier insurance you need today.
TruckInsuranceQuotes.com works with truckers just like you every day to help them understand the coverages they need and then obtain and compare quotes. Whether it’s auto hauler insurance or something else, we are happy to help. Start the process of getting quotes or contact us at 678-271-3449 for more information. Our team of transportation insurance agents would be happy to help you get quotes for your auto hauler insurance.
Source:
https://www.insuranceopedia.com/definition/4622/transportation-insurance