The Basics of Commercial Truck Insurance

When it comes to commercial truck insurance Texas there are some basic terms that must be defined so as to have a clear understanding of what needs to be done when filing a claim. Any insurance adjuster will tell you that the first thing they do when speaking with someone about their loss is ask them if they have any previous claims filed. The next question they will ask is what was your last policy limit on your vehicle? If you can answer these two questions then chances are you are completely covered under the circumstances of the accident, however this isn't always enough information for insurers or even motor carriers who are buying cargo up coverage.

Carriers often include comprehensive limits on policies similar to what is carried on an automobile policy.

Comprehensive insurance, also called other than collision, covers damage to a vehicle that is not the result of a traffic accident. This would include things such as fire, theft, windstorm, hail, flood and vandalism.

The term "comprehensive" can also be used to describe insurance that covers a wide range of potential losses other than just damage to the policyholder's car.

For commercial trucking companies, having comprehensive coverage on their trucks is important for a few reasons:

1. To cover damages to the truck that are not the result of a traffic accident- such as fire, theft, vandalism etc.

2. If the truck is involved in an accident with another vehicle, this type of insurance will pay for damages to the other driver's car.

3. If the truck is involved in an accident with an object or stationary structure- such as a mailbox, building, telephone pole etc., this coverage also pays to fix or replace it.

Typically liability limits are based on US DOT limits in the state you operate your truck. Those limits range from $750k/500k in most states all the way up to $5M/$25M in some states like New York and California .The good news is that most carriers (especially regional) carry large enough policies to cover your operation within their own fleet; however sometimes no matter how large their policy is, it's not enough to cover an accident that happens outside of their operational area.

In these cases, the carrier will often contact their insurance broker to purchase additional or "excess" liability coverage for that specific incident. This type of coverage is also known as an umbrella policy and provides protection in excess of the limits on the primary policy.

While comprehensive and liability are two important types of coverage for commercial trucks, there are many more that can be added to a policy depending on a company's needs.

Some other common types of truck insurance include:

  • collision insurance
  • cargo insurance
  • hired and non-owned automobile insurance
  • trailer interchange insurance
  • Bobtail insurance

Each of these policies offer different levels of protection and should be discussed with an insurance agent to find the right coverage for your business.



The bottom line when it comes to commercial truck insurance is that there are many options available and it's important to work with an agent who understands your specific needs. By having the right coverage in place, you can rest assured that your business is protected in the event of a loss.

GET INSURED YOUR BUSINESS TODAY CALL (702) 832-0220

 

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