Truck Insurance Basics

If you’re planning to purchase a commercial truck, you should understand the truck insurance basics first. Here are the coverages you need to know: General liability coverage, Collision insurance, Occupational and accident-related injury coverage, and Bobtail coverage. You should also know how to protect your assets from the cost of accidents. In this article, we’ll cover the basics of small truck insurance and provide you with helpful advice. Read on to learn more!

General liability coverage

A general liability coverage policy on a truck is a legal requirement in every state. It protects trucking companies from a variety of situations, including property damage and bodily injury. In addition, it provides coverage for accidents while operating on someone else’s property and even mistakes made during load delivery. A general liability policy also replaces your truck in case it gets damaged while in transit. Premiums are determined by the value of your truck.

It is also important to note that a general liability policy doesn’t protect you against every potential situation. A claim can be worth tens of thousands of dollars, so it’s important to have this coverage. Even if you’re found not guilty, attorney fees can quickly add up. Without insurance, these costs can bankrupt a business. A good general liability policy covers defense costs and damages and will also cover judgments and settlements.

Collision insurance coverage

If you drive a truck, you should consider collision insurance coverage for your insurance policy. This type of insurance helps you pay for repairs or replacement of your vehicle if you are involved in an accident. However, you should note that collision insurance typically comes with a deductible, which is the amount you have to pay out of pocket for your claim before your insurer will pay out. Collision coverage may not be worth the money you’d save if you were to upgrade your vehicle, so be sure to consider the deductible when making your decision.

It may not be required by law, but some lenders require collision coverage when you purchase a truck. While this coverage does not protect you if you are at fault for a crash, it will give you peace of mind if you need to make a claim. You may not need collision insurance if you park your truck in a garage or storage. It’s best to have collision coverage to avoid any financial problems down the road.

Occupational and accident-related injury coverage

In today’s world of trucking, independent and contract drivers are working overtime to keep up with record-breaking freight hauling demand. Unfortunately, expanding opportunities also bring with them a risk of work-related injuries that are not covered by traditional workers’ compensation insurance. These injuries can cause huge financial losses for an owner-operator, who must pay large medical bills without any income. Fortunately, occupational accident coverage is inexpensive and can help cover wage replacement and medical expenses incurred after a work-related accident.

In addition to protecting drivers from damages due to workplace injuries, occupational hazard insurance offers protection to employers and non-covered employees. Because many trucking companies employ independent contractors and owner-operators, these insurance policies can help protect both the company and the owner-operators who may have to file claims. In some states, trucking companies may opt out of workers’ compensation programs, but they still have a legal obligation to cover employees in the event of an accident or illness.

Bobtail coverage

Bobtail coverage in truck insurance is designed to protect you from lawsuits and high out-of-pocket expenses if you become involved in an accident. Most motor carriers require drivers to have this coverage as part of their policy. While it is typically reserved for cargo trucks, bobtail coverage is also appropriate for commercial and farm tractors, as well as dump trucks and skid steers. Read on to learn more about the benefits of bobtail coverage in truck insurance.

Bobtail coverage is an option for trucks that do not have a trailer attached to them. It covers damages to other cars and medical expenses for occupants of other vehicles. If you frequently bobtail, you should purchase bobtail insurance to protect yourself from the costs of such an accident. Whether you are picking up a load or dropping it off, bobtail insurance protects your vehicle and its occupants.