The Different Types Of Truck Insurance, Explained

When it comes to insurance for commercial trucks, you'll find two basic types: personal and fleet.

3 min read
The Different Types Of Truck Insurance, Explained
Photo by Rhys Moult / Unsplash

When it comes to insurance for commercial trucks, you'll find two basic types: personal and fleet. Personal coverage is designed to cover you if you have an accident or a customer claims you. Fleet insurance is designed to protect your business assets from any kinds of losses that would result from vehicles being stolen or damaged.

The difference between these two policies can be drastic. With personal coverage, if your vehicle is destroyed or damaged, you'll only receive coverage for the vehicle's value. If you own brand new dump trucks, they will most likely be covered with a full replacement price. However, when it comes to fleet coverage, you will be covered for damage or theft of the whole fleet. This means if your company owns about five dump trucks, they will be covered no matter what. This may not be the case with personal policies because some companies only payout based on the actual cost of the vehicle being destroyed.

If you don't own a fleet of commercial trucks, you can opt for a commercial truck semi-truck insurance policy instead. This can be an effective choice if you only use the vehicle for work-related tasks or events. Semi-truck insurance policies will offer the same benefits and coverage as a personal policy. Still, they are designed for very large companies or businesses with many trucks on the road at one time.

These policies are typically more expensive than personal policies because of the increased risk, such as having many vehicles on the road and the added coverage provided through the use of a fleet insurer. You'll pay a monthly premium to own and operate the fleet, including any associated operating costs like repair bills, maintenance, and fuel.

You need to know several things when it comes to buying a semi-truck insurance policy. In general, self-employed people have slightly different requirements than regular truck drivers. Self-employed people must carry a certain amount of liability coverage, and they are restricted in the kinds of driving activities they are allowed to be involved in. Read on to learn more about getting your self-employed commercial vehicles insurance policy just right.

When it comes to ensuring trucks, most trucking insurance companies require the owner-operators to get a written declaration stating their vehicles' purpose. The declarations also state the number of miles driven and any other information that is pertinent to the business. This declaration is often required by all truck drivers, not just owner-operators.

Truckers must provide proof of financial responsibility for their operations each year. The proof of financial responsibility typically consists of two hours of video taken from a news helicopter or other aerial photo of the business premises and a list of the bills that the business owes on hand. Most insurance for commercial trucks requires drivers to pay a separate premium for commercial trucking insurance every time they make a claim. Drivers are also required to maintain good grades to keep the premiums from increasing too much in a given year.

Often, owners-operators of large, oversized trucks find that they need to obtain special types of insurance to ensure the vehicle instead of general liability insurance. Special insurance for commercial trucks is designed to cover damage to the actual vehicle itself. They do not insure the driver, as the liability limits are designed for vehicles carrying the company's name or emblem. Instead, these policies are designed to protect the business if an insured vehicle is damaged while being driven by an insured driver.

Other types of truck policies include collision coverage, which pays the trucking businesses for repairs to their vehicles in an accident. Comprehensive coverage is designed to pay the business for damages to its property if a trucking business is issued by an insured party in an accident. Finally, third-party insurance policies are often available to protect the business against the losses suffered by other drivers that may cause a trucking accident.