How to Get Long Haul Trucking Insurance

Are you about to purchase long haul trucking insurance? If YES, then here is everything you need to know about long haul trucking insurance. Indeed, the trucking business is no joke. There is a massive demand for trucking services especially with the upsurge of industries eager to get their products distributed from one location to the other. Though there is plenty of earning potential in the trucking business, there is an equal amount of risks involved.

For instance, there are incidences wherein the vehicle gets stalled in the middle of the road and may delay the deliveries of your customers. Although it depends on the kind of arrangement you have, but your business may incur penalties for these delays or its absolute loss of income. Again, what if the vehicle gets hijacked and the truck operator has to pay for the replacement cost of the goods?

Aside from the vehicle being damaged in a collision, the lives of the drivers, passengers, and third party individuals are at stake. If you think of all the risks involved and the possible expenses that go with it, you might think twice about venturing into this business.

Truckers will be on the road for long periods of time as their work schedules are not defined by nine-to-five routines. This entails that these truckers need insurance coverage in the middle of the night, far away from their business premise and sometimes even on weekends.

For these and many more, most insurance companies are hesitant to insure long haul truckers. Indeed, it still boils down to the amount of risk taken — the more number of miles a trucker drives, the more risk he takes of meeting with an accident. Some insurance companies provide coverage only up to a 300-mile radius, whereas some others provide up to a 500-mile radius. Very few insurance companies agree to provide coverage beyond a 500-mile radius.

If you are an owner-operator transitioning into long haul trucking, maybe your present insurance provider may offer coverage to the increased driving area. You may not necessarily have to find a new insurance policy or company. However, it is advisable you shop around for insurance providers that specialize in long haul trucking.

Policies That Make up Long Haul Trucking Insurance

Every fleet owner has their own specific needs and criteria where they need long haul trucking insurance protection. As a fleet owner, you will find a lot of insurance packages online and with insurance providers that will cover the most basic needs. Nonetheless, here are basic policies to look out for;

1. Medical Payments Insurance

Note that this coverage is for medical expenses incurred by drivers or passengers in other vehicles or the driver of a truck involved in an accident. A good number of insurance companies require that owner/operators or owners provide them with the names of any operator who may be driving the vehicle, and sometimes they base the rate you pay for coverage on the driving records of those who are going to be driving.

2. General Liability Insurance

Almost every state mandates commercial truck owners to maintain liability insurance coverage. This type of coverage covers bodily injury and property damage that others incur due to the actions of the owner or the operator. Each state mandates the minimum amount of liability coverage for owners, but those coverage needs can change when truck drivers cross over into other states during the course of operating the rig. There are also federal mandates about the minimum amount of coverage for these trucks.

3. Physical Damage Coverage

Lenders would always request physical damage insurance if you have financed the truck’s purchase. This coverage is expected to remain in force for the length of the loan. If the truck becomes damaged due to a collision, this insurance pays for damage without regard to fault. Comprehensive policies also cover losses due to theft, vandalism, fire, and other natural disasters.

4. Motor Truck Cargo Coverage

Have it in mind that this covers the cargo being hauled with this type of coverage. Federal law mandates $5K minimum coverage for cargo, but individual shippers may require additional limits. This coverage protects you if the cargo you haul is damaged or lost during transit.

5. Equipment Coverage

Coupled with physical damage, equipment coverage protects you from loss for equipment you keep in the truck, such as navigational devices, electronics, tarps, chains, and other items.

6. Bobtail Coverage

For times when the commercial tractor is operated on its own without a trailer, bobtail insurance can be crucial.

7. Non-Trucking Liability Coverage

Note that this coverage kicks in when you are driving the truck outside of business purposes. For instance, when you drive to a job or drive from the job site or if you use it for any personal reason.

8. Occupational Accident Coverage

This coverage is similar to worker’s compensation insurance but tends to act as a supplement. It offers your employees with long-term disability and payments for accidental death or dismemberment.

How to Reduce Long Haul Trucking Insurance Rates

Long haul trucking insurance is more expensive compared to when the trucking business is operating in an area of smaller radius. Nonetheless, there are still few things that can be done to reduce your monthly bills:

1. Take Only Relevant Coverage

Some important coverages like liability, physical damage, and cargo insurance are essential. But some insurance companies try to include coverages that you entirely don’t need so that your premium amount increases. For example, if you operate only within a 250-300-mile radius of your business location then make sure your company has charged you for just that much and not for 500-mile radius coverage.

2. Request for Higher Deductibles

Note that for your monthly premium amount to be lowered you can ask for higher deductibles — the amount that you will have to pay out of your pocket when an accident does occur. However, you have to be careful with this one, sometimes if your deductibles are very low you might have to pay large lump sums of money for damages during an accident and that will defeat the purpose of having trucking insurance.

3. Compare Quotes from Multiple companies

If you are an owner operator switching to a long haul trucking business then consider which would be cheaper — continuing with your current insurance provider or buying a fresh insurance policy from a new company.

4. Maintain a Good Driving Record

Putting into consideration the amount of risk involved in buying long haul trucking insurance, it helps if you can show a driving history with excellent records and a well seasoned driver with commercial driver’s license. Note that showing a safe driving record illustrates responsibility and it will entail that you are not high risk for the insurance company.

Conclusion

Long-haul trucking insurance can be complicated, especially when you travel across state lines and don’t know what you will be carrying from one week to the next. There are varying considerations that come into play when you are choosing the best insurance for your long haul trucking coverage.

When picking the right long haul trucking insurance policy for your needs, work with an agent who has experience in working with truckers, owner/operators, and trucking companies. Compare rates through your agent to find the best possible rate and the coverage limits you need to protect your financial interests and your business.