Commercial machines and equipment are always on the move. Semi trucks spend more than 140 billion miles on the road each year transporting goods and equipment across the United States. If you are an owner operator who delivers machines and equipment via your own tractor trailer, you need the right insurance to help keep you on the road. Here are 4 important truck insurance coverages that every owner-operator needs.
4 coverages to consider if you transport equipment for business use.
#1. Liability Coverage
Liability insurance is required by federal regulations. It pays for damages that you cause to other people or their property. It covers third-party injuries and property damage. There are two parts to liability coverage — property damage and bodily injury liability.
When you are responsible for a truck accident, bodily injury is the part of your insurance policy that covers costs associated with injuries to the other persons involved in the accident. This coverage also pays for legal fees if you are sued for bodily injury damages.
Property damage is the portion of your liability policy that pays for the costs associated with replacing or repairing another person’s vehicle or other property. It applies to any type of property that you could damage in an accident such as mailboxes, buildings, and other structures.
#2. Physical Damage Coverage
Physical damage insurance for truckers refers to a group of insurance coverages that protects your vehicle if it is damaged in an accident. There are three types of physical damage coverage:
- Collision – If your vehicle is damaged in a collision with another object or vehicle, collision insurance will pay for repairs to your vehicle. It will also cover your truck in the event that it overturns or rolls.
- Comprehensive – Comprehensive insurance generally covers damage from events other than collision, for example, fire, falling objects, animal strikes, and vandalism. Damage from a hail storm would be covered by your comprehensive coverage.
- Fire and theft with additional coverage (CAC) – Fire and theft insurance or CAC is a type of limited comprehensive insurance that specifically covers fire and theft. This insurance coverage is limited in its scope but it does provide important coverage in the event of a fire or theft.
#3. Motor Truck Cargo Insurance
When you are hauling expensive equipment, you need motor truck cargo insurance. The majority of carriers require it. This insurance pays for damaged cargo. If your cargo is accidentally dumped on the roadway or destroyed due to a collision, fire, or theft, then motor truck cargo insurance would pay out.
#4. Uninsured And Underinsured Motorists Coverage
When motorists are uninsured or underinsured, it means that your injuries may not be paid by the other driver if they hit you. If you carry uninsured and underinsured motorists coverage, it can help you if the other driver doesn’t have enough insurance – or any insurance – to cover the damages from the accident.
To get the cheapest and best coverage for your truck, make sure you compare insurance quotes. For more information on comparing quotes, check out this blog post. To get started with your truck insurance quotes, you can fill out our online form or give us a call today.