Truck Insurance Rates and FMCSA

Truck insurance rates are probably the last thing on the FMCSA’s mind when they institute new safety programs, but FMCSA regulations can have a large indirect effect on the industry.

Commercial trucking is highly regulated for good reason.  Over 45,000 deaths occur each year in motor vehicle related accidents and it is estimated that up to 9 percent of those accidents involve commercial trucks.

It is therefore the responsibility of several government and private agencies to make sure that roads and highways are safe for all drivers, including truck drivers.  The United States Department of Transportation has established several of these agencies, such as the Federal Motor Carrier Safety Administration, or FMCSA.

The Federal Motor Carrier Safety Administration

The purpose of the Federal Motor Carrier Safety Administration, or FMCSA,  is to improve the safety commercial motor vehicles and truck drivers through the creation and enforcement of various safety regulations.  They do so through their Office of Analysis, Research and Technology (ART).

This office is responsible for collecting research data related to commercial vehicle traffic safety and then analyzing it to help them draft legislation to improve overall traffic safety.  They have several programs in the works, but in one in particular is considered highly controversial among the trucking industry community: The Compliance Safety Accountability 2010, or CSA 2010.

CSA 2010

This program is designed to measure and improve traffic safety through data analysis and implementation of new safety criteria.  Drivers and motor carriers are assessed and given a safety score between one and one hundred.  These scores are currently public record, and are fully accessible to insurance companies.

Advocates for the trucking industry, such as the Owner Operator Independent Driver Association, argue that these scores are unfairly weighted and can cause undue insurance rate increases.  The main complaint is that the score is affected by any traffic incident, regardless of fault or conviction, creating a vague and misleading system of evaluation.

Truck Insurance Rates: Will CSA 2010 Affect Commercial Trucking Insurance prices?

It is estimated that up to 45,000 deaths occur each year as a result of traffic accidents.  Up to 9 percent of those accidents are said to involve commercial trucks and other commercial vehicles.  It is important to note, however, that less than 20 percent of those accidents are reported to be caused by the commercial truck drivers.

Statistics such as these should be noted when insurance providers in the commercial truck insurance industry decide to alter the cost of commercial trucking insurance rates.  As of now, insurers have a flawed program called CSA 2010 to provide them with data that affects individual’s insurance rates.

FMSCA

The Compliance Safety Accountability 2010, or CSA 2010, is a comprehensive program designed by the Federal Motor Carriers Safety Administration (FMCSA) to improve safety for trucks and other commercial vehicles.  They do so under the authority of the U.S. Department of Transportation.

CSA 2010 presents their safety data (which includes driver’s records, company accident history, equipment ratings, etc) as public record.  One needs only to visit the website to view safety scores.

Independent Driver Concerns
Many organizations that represent the trucking industry, including the Owner Operator Independent Driver Association (OOIDA) oppose this program.  The OOIDA, in particular, feels that the rating system, viewable by customers, commercial trucking insurance companies and any member of the public able to sign into the FMCSA site, unfairly penalizes independent drivers more than motor carriers.

The OOIDA has expressed concerns about the system, claiming the standards for arriving at scores is weighted against independent drivers by counting 3 years of violations and infractions as opposed to the 2 required for motor carriers.  Furthermore, the organization expresses concerns about counting all infractions including warning tickets as opposed to just convictions.

More Truck Insurance Articles:
For additional truck insurance reading, take a look at some of our other articles such as: Truck Insurance and the FMCSA

With a similar reverence, Overdrive Magazine is reporting that truckers surveyed across the country have voted Petro Truck Stops their “favorite truck stop” of 2010.

The magazine has run their independent study of truck drivers across the U.S. for the past four years and Petro has been ringing up top rankings for the entire span.

The survey includes 17 different categories ranging from “quickest fueling” to “best buffets.” Petro incinerated the competition by taking the No. 1 spot in 15 of the 17 categories.

Petro, owned by parent company TravelCenters of America LLC, is headquartered in Westlake, OH—a town also famous for hosting the 2006 USA Broomball National Championships.

Petro hosts Iron Skillet diners, Krispy Kreme Doughnuts, Blimpie Subs, DOT screening services, clean restrooms and showers, an assortment of cheesy bumper stickers and beer koozies and a legendary assortment of generic cell phone chargers on revolving racks.

Just about the only things they don’t provide for truckers are licensing and commercial truck insurance.

Some of the categories Petro cleaned up in throughout Overdrive Magazine’s survey included “best food, best breakfast, best buffets, healthiest menu, best travel stores, cleanest restrooms, best parking, easy to maneuver fueling lanes, best employees, best restaurant coffee and best truck stop experience.

Let us Know What You Think in the Comments Below:

Do you agree with the Overdrive Magazine survey? Would you vote Royalty Truck Insurance the best truck insurance provider of 2010?  Tell us below in the comments field!

As a commercial truck insurance company, we know better than anyone just how regulated the industry is. In the midst of a recession where paying truck insurance premiums are the least of most truckers problems, a lot of drivers are worried these new ratings regulations couldn’t have come at a worse time.

The Comprehensive Safety Analysis 2010 is a new federal program that’s being rolled out by the FMCSA.  The program assigns a score to motor carriers that aims to demonstrate their risk to shipping agencies based on their past safety violations.

Things like driver fatigue, behavioral analysis, driver fitness, alcohol or controlled substance violations and accidents caused are all measured to formulate a final score—kind of like a quarterback rating in the NFL

Some drivers are concerned many shippers will read too much into the numbers, choosing to avoid carriers with lower scores that are still above acceptable standards.  They’re worried this could cost smaller business jobs based on unfair comparisons.

Trucking companies with excellent track records and safety advocates for the FMCSA think otherwise, calling the ratings system a “new nationwide system that will make the roads safer for motor carriers and the public alike.”

Stories have surfaced of freight companies that have suffered lower scores because of violations taken into consideration from the distant past—sometimes even before the violations were even considered safety related at all.  In some cases, these companies have lost major accounts.

Let us Know What You Think in the Comments Below:

Is the new CSA rating system really a bonus for the safest drivers, sort of like lower commercial truck insurance premiums are offered to the safest companies? Or is this an unfair system that divulges too much unnecessary information for shippers to discriminate against the trucking industry?

Should a license in good standing, a qualified driver and proof of commercial truck insurance be all a company should need to be hired?  Will these safety regulations really cost truckers more jobs in the end?

Dump truck insurance is one of the largest categories of commercial truck insurance specialization, probably due to the very different capacities dump trucks are used, the very specific types of cargo dump trucks carry and the different variations of dump trucks themselves.

There is probably not a commercial truck cooler than a dump truck—kids play with dump truck toys and there’s something about a dump truck amidst a construction scene that commands a certain degree of reverence. The dump truck is huge, made of heavy metal and has tons of moving parts—all things that are very cool for any commercial truck enthusiast.

If you know the difference between a standard dump truck, articulated dump truck, side dump truck and superdump truck, than you definitely understand why dump truck insurance is one of the most highly specialized (and important) securities in the world of commercial truck insurance. Dump trucks are big, mean and can cause some serious damage if not used properly, and their commercial truck insurance coverages reflect that.

A typical dump truck is used for transporting earthy or aggregate materials, such as dirt, sand and gravel for construction. Many garbage trucks are dump trucks as well. The dump truck is used off road in many capacities as well, such as in the mining industry, logging industry and in any other tasks that require hefty earth moving.

Usually equipped with a hydraulic lift, the dump truck’s trailer is used to deposit its haul contents safely behind the truck wherever it’s transported.

Generally, if you’re a fleet owner that commissions 1 or multiple dump trucks, you likely need a special dump truck insurance policy and other forms of commercial truck insurance such as specialized cargo insurance.

When a driver is off the clock, or not hauling any cargo, coverage is still needed to protect both you and your bobtail, hence the name

“bobtail insurance.”  Similarly, coverage is needed for when you are driving your truck for any non-trucking or work-related activity, hence the name “non-trucking liability insurance.”

Easy as pie! All you need to know is that they mean the same thing and that we specialize in providing it for you.

It is common practice in freight companies for employers to only insure for the cargo and the driver while working. When the driver’s shift ends, so does the protection. Make sure that after you’ve punched out and called it a day, insurance for your bobtail will still be on the job.

Finding the right truck insurance can be difficult because there are so many specializations in the world of commercial truck insurance.  The specialties exist for a few reasons.  Largely because commercial trucks are used in such varying capacities, and largely because the federal and state governments dictate coverage amounts to protect people from the capacities commercial trucks are used.

In simpler terms, a state like California will require you have a much higher coverage amount for hazardous materials haulers than they will for household goods haulers.

Household goods don’t tend to explode and shoot flames 60 feet in the air when they’re involved in a heavy accident—gasoline does. Hence the different cargo insurance amounts.

Specializations among commercial truck insurance exist for styles of trucks and their functions, as well as the cargo they carry.  Big truck insurance for large rigs will have fairly standard coverage amounts compared to regular semi truck insurance, but they’ll account for their capacity to carry oversize loads.

Additionally, tow truck insurance and dump truck insurance have their own special coverage amounts and characteristics because the capacities of the trucks are different than typical semi tricks—tow trucks obviously haul other vehicles and dump trucks unload in a unique fashion.

If all of this commercial truck insurance specialization confuses you, don’t sweat it.  Just remember, whatever your truck and situation, you really just need primary liability truck insurance and probably some type of trailer and cargo insurance.  If you need help figuring out what coverage amounts you need, just contact one of our agents to help clear it up!

Hail the tow truck, quite possibly the best vehicular metaphor for human existence and the perfect ying-yang in the world of commercial trucks (and commercial truck insurance for that matter).

Allow us to explain this a bit further. Some of us think of tow trucks as the large, metal white knights in shining armor of the road—the saviors of the street and the mountains in snowy conditions that save our helpless cars from the savage perils of dark and stormy roads.

Then again, others don’t exhibit quite the same emotion when they walk out of a place of business to find that their car was towed by the city for being illegally parked.  The knights in shining armor soon become petty extortionists, whose name we curse for charging exorbitant minimums and unreasonable per-day garage fees.

The tow truck, much like human beings and nature in general, is a paradox.  Sometimes good, sometimes evil—even when used in the same capacity.

Deep, huh?  Well, tow truck insurance doesn’t have to be that emotionally confusing. Insuring tow trucks is actually quite simple for us, because we provide tow truck insurance throughout the majority of the United States, for good or ill.  While the tow truck is usually operating in a similar capacity, tow truck insurance is specialized for the fact that the vehicles they tow can vary greatly in value.  Additionally, tow trucks are oftentimes picking up said “cargo” in pretty malicious conditions, whether it’s a snowy mountain road or in the middle of downtown Los Angeles gridlock traffic.

Still confused?  Just contact one of our truck insurance agents to clear it up.  We also cover car carriers insurance for bigger vehicular hauls.

We must say, we learned a lot getting licensed to sell truck insurance in North Dakota—much more than just the ins and outs of commercial truck insurance regulations of the state.

We also learned that Cambridge University thinks that North Dakota is the friendliest state in the Union, based on an official study they conducted. We’re still not sure if the study was based on manners or crime rates, but either way, it’s pretty cool if you ask us!

We also learned that North Dakota set a world French fry-serving record in 2006 at the Potato Bowl USA, firing up over 4,620 pounds of the delicious side (with 113 gallons of ketchup to boot).

We also learned that there is such a thing as the Potato Bowl USA.

While we may not be experts in everything North Dakota, for example the intricacies of the sacred albino white cloud buffalo that calls the state home, we definitely are the experts when it comes to North Dakota truck insurance.

Give us a call for anything commercial truck insurance related, whether it’s tow truck insurance in North Dakota, dump truck insurance in North Dakota, potato haulers insurance, sacred albino white cloud buffalo haulers insurance—whatever you need, chances are we can hook it up!

Let’s hear it for North Dakota!

But what’s the best way for independent owner/operators to know they’re always carrying the proper general liability coverage amounts?

The answer depends partially on what part of the commercial trucking industry you usually operate within, but we’ve got some simple tips the independent driver can follow to be sure they’re always carrying the right commercial truck insurance to cover their rig in every scenario.

Non-Trucking Liability

Most times, the independent owner/operator will not need their own primary liability coverage because they’ll be covered by that of their trucking company or fleet whenever they’re on dispatch.  This means if they’re driving to pickup their cargo, they’re covered as they are generally considered “on dispatch.”

Of course, they’re covered while delivering, and oftentimes on the way back from a delivery.  It’s important to always carry up-to-date non-trucking liability, also called bobtail insurance, to protect their trucks in times they are not technically on dispatch.

Examples of this may include while washing or performing maintenance on the truck, or while driving recreationally.

Know Your Cargo

Oftentimes while on duty, the independent owner/operator is covered under their employer’s cargo insurance as well.  Cargo insurance varies greatly in coverage amounts, due to the dangerous or explosive nature of certain materials.  But Independents can carry their own general freight cargo insurance as well. Cargo insurance isn’t always required by law, and independents can often craft their own special policies to cover goods they are hauling for contract employers in the event of spoilage or accidents.