This degree of specialization has spilled over into the commercial truck insurance industry. With so many different ways that commercial trucks are used, some special types of insurance are needed. Here’s a comprehensive guide to the most typical types of policies.

Primary Truck Liability Insurance

Primary truck liability insurance is a form of commercial truck insurance that the United States Department of Transportation requires all commercial vehicles to be covered under. It entitles drivers to financial coverage for injuries and damage costs if involved in an accident where a truck driver is at fault.

Motor carriers often provide this coverage to their employees. Even independent owner/operators are eligible for coverage while under contract. Unfortunately for them, they may need additional coverage to protect their personal assets and for when they are off the job.

Physical Damage Insurance

An independent trucker’s most valuable asset is his or her truck. It is of the utmost importance that that truck be well maintained and that it can be repaired if something unfortunate happens.

Physical damage insurance will cover the cost of damage in an accident whether or not the truck driver is at fault.

Non-Trucking Liability Insurance

Because liability coverage is required by law at all times a truck is on the road and because motor carriers cease to provide coverage for their independently contracted drivers once the job is done, additional liability insurance must be purchased. Thankfully, non-trucking liability insurance provides this coverage without forcing drivers to pay when they are otherwise covered.

Comprehensive Truck Insurance

Comprehensive truck insurance is sort of a continuation of physical damage insurance. Think of a comprehensive coverage policy as including primary truck liability, physical damage and other insurance clauses that prevent against disasters like fire, theft or vandalism. If you want total coverage of your own personal assets, comprehensive insurance is usually the best way to go.

Trailer Insurance

It’s less usual for independent owner/operators to actually own and operate with their own trailers—typically, trailers are either owned by the trucking company or actual shippers, so trailer insurance usually becomes a commodity that’s better included within a motor carrier insurance policy. Still, it’s important to differentiate trailer insurance so all truckers are aware that trailers typically aren’t included in basic truck insurance without specific additional provisions.

Cargo Insurance

The same is true for cargo insurance—typically it’s something that’s more beneficial for motor carriers or fleets to carry as blanket coverage for their business. Independent truckers aren’t usually going to benefit from cargo insurance since they will usually fall under the truck insurance of their hiring fleets if any issues with cargo damage arise.

Motor Carrier Insurance

Motor carrier insurance usually incorporates the same policies for regular trucks, though motor carriers will need to cover all the vehicles they employ. Bundling general liability policies, truck, cargo and trailer insurance, and policies like workers compensation within one company can save trucking companies or motor carriers a significant annual premium in most cases.

Royalty Truck Insurance is an award-winning truck insurance agency recognized by winning the Insurance Agency of the Year from the Consumer Business Review 9 times in a row.  Trust Royalty Truck Insurance for all your commercial truck insurance needs, and browse our site for more helpful resources like this article on diverse commercial truck insurance policy options. 

Got Truck Insurance?

Protecting personal property is important to all of us. For independent commercial truck drivers, that importance is compounded by the fact that not only is that personal property (such as their trucks) very expensive, but it is also their primary means of making a living—it’s important to be meticulous with your truck insurance policy to know when your equipment is covered and when it could be in jeopardy.

If damage to an independent owner/operator’s truck does occur, it may result in hefty repair bills or force the driver to purchase an entirely new vehicle. Neither of those options are good scenarios for drivers who probably don’t have the money for such financial burdens, considering they can reach the $100,000 range.

Truck Liability Insurance

The United States Department of Transportation requires that all drivers operating commercial vehicles carry at all times a primary truck liability insurance policy. This is to ensure that if the driver causes an accident or otherwise damages another motorist’s vehicle, that person is entitled to have their repair costs covered by the at-fault driver’s insurance carrier.

The catch: if the at-fault driver’s vehicle is also damaged, the primary liability policy will not cover the cost of those damages. Luckily, there is an option available for independent truck drivers apart from truck liability insurance that will cover their assets in these cases.

Physical Damage Insurance

Physical damage insurance can be purchased to keep all personal assets covered. It will cover repair costs for trucks damaged in accidents, regardless of fault.

This handy form of truck insurance also covers the truck when it is not running. If it is parked at a rest stop, for instance, and someone vandalizes it, the physical damage insurance will cover the repair costs.

Sometimes physical damage is pitched as comprehensive coverage, which is basically truck insurance that includes physical damage clauses and also provisions to cover your truck in the event of fire or theft.

Royalty Truck Insurance is an award-winning commercial truck insurance agency serving most of the continental United States, offering semi truck insurance, cargo and trailer insurance services to both motor carriers and independent drivers.

For more commercial truck insurance resources, visit our truck insurance articles page, or check out some of our other blogs such as this one about truck insurance rates and the FMCSA.

The ruling was in favor of the commercial truck insurance company, who defendant and Los Angeles resident Roland Polanco accused of negligence that resulted in his arrest that allegedly triggered a seizure and cost him further medical bills.  The commercial truck insurance agent allegedly failed to call Polanco’s bank to verify his identification after receiving call from Polanco’s girlfriend and learning the bank had authenticity concerns regarding a check they had issued to him.

Polanco suffered a neurological disorder and is currently receiving checks from a workers compensation insurance policy the truck insurance company covered him under.  Only later, after Polanco was arrested and suffered a seizure, did the insurance agent call Los Angeles police to verify the authenticity of the check.

According to the published reports of the court, the justices ruled in favor of the commercial truck insurance company, stating the agent had no specific legal obligation to place the call to the bank.  Though the case was dismissed in favor of the insurance company, it seems the entire incident could have been avoided with better customer service regarding the claim.

If there is always an open line of communication between insurance agents, claimants and insurance providers, situations like these can be completely avoided.  All it takes is a little personal service—in this case, one simple phone call in real time to the bank would have prevented the Polanco’s unnecessary arrest and possibly even his seizure.  It certainly would have prevented a four-year court case that was ultimately dismissed by the Court of Appeals.

When choosing a commercial truck insurance company, always make sure you trust your agent to provide you with expedient and detailed service in the case of a claim.  Without reasonable customer service, truck insurance claims can be a lot more difficult on both insurance companies and customers alike than they really need to be.