Commercial truck insurance can be complicated and pricey and you might not know where to begin especially if you’re new to the industry. There are a lot of things that need to be considered to balance saving money and having enough coverage. The right insurance for your truck can save you a lot of stress and give you a good amount of peace of mind knowing that you are protected from potential catastrophes.
There are many different types of coverage when it comes to commercial truck insurance Chicago IL that need to be considered when purchasing insurance. Each of these covers specific situations and damages than the others. Here are just a few of the types of coverage that are available.
Primary Auto Liability
This type of insurance is required on a federal level to meet certain regulations. Every rig must have liability insurance even if they are leased. If someone else is hurt in an accident, liability covers their damages. As an owner-operator, it’s important to ask the company that you are considering leasing from questions about who provides this type of insurance on the rig.
This type of coverage protects your trailer and truck. Your plan’s premium will be based on how much your equipment is worth at the time. Usually, a percentage is used to determine the cost. While it’s not legally required, it’s highly recommended as commercial truck equipment can be exceedingly expensive. If there are damages or a loss to your equipment, the insurance company will pay you the exact market value.
Even if you are not dispatched, there’s a good chance that you will still have to drive your truck somewhere. This is what non-trucking liability coverage is for. If you are in an accident when not on the job, you will still be covered.
Even out of the truck, there are still hazards in the workplace when it comes to trucking. Accidents can happen while at a business or your own headquarters. In addition, this insurance also protects against contractual damages as well in some cases.
In many cases, the cargo being hauled is much more expensive than the equipment that is hauling it. It’s important that it be protected whether it be from an accident or theft. There are maximum limitations to the coverage available for the cargo being transported that are important to keep in mind when taking a load.
Non-Owned Trailer Coverage
For trailers that you are hauling for someone else, you can have both liability and physical damage insurance to protect the equipment. There is usually a standard of around $20,000 for non-owned trailer physical damage coverage. Liability coverage is used when there is an interchange agreement to protect the trailer.
Your freight needs to be protected when it’s off the road, including at a terminal. There are usually time limits for this type of insurance of around 3 days. It’s important to know these limits before parking your freight for an extended period of time.