It can be extremely challenging for new owner-operators to secure the trucking insurance they need for their business operations. Trucking accidents can be costly for insurance companies, so many of the standard commercial insurance providers may make it more difficult or expensive to get trucking insurance for new owner-operators. Here are some of the common challenges and pitfalls to be on the lookout for when it comes to new trucking company insurance.
Beware of High Upfront Costs
One of the major obstacles new truckers face when starting their businesses is high upfront costs, especially when it comes to buying a truck and finding commercial insurance. Many commercial insurance providers require hefty down payments for new truckers. Even if large down payments aren’t required, the costs for most commercial trucking insurance plans are high
In some cases, you can expect to pay between $16,000 and $20,000 a year per truck for commercial insurance. Overall costs for trucking insurance decrease after you have more years in business without an accident or claim. After three years, you should expect to see a decrease.
Work With a Specialized Trucking Insurance Agency
It might be tempting to call your personal auto insurance company to get a quote. However, most of the big insurance industry players only have a few different options when it comes to commercial trucking insurance, if the company will offer coverage to new ventures at all.
Instead, you could choose to work with a specialized trucking insurance agency like Tobico Trucking Insurance that specializes in providing commercial trucking insurance. These insurance agencies work with many different insurance providers, which means that your insurance agent will be able to tell you the best price and all of the options you have without having to call insurance companies directly and settling for a higher price than is necessary.
Understand the Types of Commercial Trucking Insurance
To truly be able to compare quotes from different insurance, you have to understand the types of commercial trucking insurance available. If one company quotes a much lower price, it is possible that the quote didn’t include all of the same types of coverage that another company included. The types of commercial trucking insurance include:
● Truckers general liability coverage: Covers you when you operate on another company’s premises, such as truck stops and loading docks.
● Primary liability coverage: While this type of coverage won’t cover your truck, primary liability coverage pays for damage done to others during the operation of your truck.
● Motor truck cargo coverage: This covers your cargo. Look for a Broad Form plan that provides better protection.
● Medical payment: This provides coverage for medical bills for you and your passengers in the event of an accident.
Personal Protection Insurance
In some states, for example, in Florida, Personal Injury Protection coverage is required. PIP Is a form of no-fault insurance coverage that pays medical bills and lost wages in the event of an accident. PIP doesn’t cover all the expenses of an accident though, so to increase protection and compensate for the future losses, Florida law also requires insurance providers to offer Uninsured Motorist coverage as an option.
Uninsured Motorist and Underinsured motorist coverage. This type of coverage protects individuals injured in accidents caused by motorists who do not have insurance or carry a policy which doesn’t cover all the expenses.
Commercial trucking insurance for new truck drivers is an investment. Fortunately, there are ways to find the insurance coverage that better meets your needs and your budget. Call Tobico Trucking Insurance at (469) 731-0707 to learn more about our trucking insurance options. We’re happy to work with new drivers and provide competitive rates.