It is understandable why people attempt this crime: the payout can be enormous. Accident settlements can bring tens to hundreds of thousands of dollars. But the chance of backfire is even more risky. Faking an insurance claim can bring penalties that far outweigh the reward, with thousands in fines and legal fees with jail time added on top.

Take the following case from Florida that occurred just over a month ago…

Florida Insurance Fraud

In Tallahassee on March 27, 2012, the Florida Department of Financial Services made a decision regarding a fraud investigation from the past two years.

The 15 defendants have been arrested for crimes that include ripping off more than $800,000 in fraudulent property damage and claims for Personal Injury Protection (PIP) claims. Between 2008 and 2010, the crime ring staged over a dozen incidents.

The scam involved food trucks that recruited people to pose as owners and then stage accidents. They then reported the accident and committed the truck insurance fraud.

Crime Doesn’t Pay

The biggest issue is that it was really easy for the Department of Financial Services to track the criminals down. With so many similar occurrences of food trucks getting wrecked, it was actually a simple case.

Like I mentioned, insurance fraud is attempted on every agent, with very poor results. With years of experience, we can use photos from the accident to determine when the whole scenario has been faked.

Royalty Truck Insurance is a leader in the industry. Call us today for a free quote for your vehicle or to ask what services we offer. Follow us on Twitter @royaltytruckins

The Federal Motor Carrier Safety Association (FMCSA) has many rules for truckers of driving on the road to increase the safety of truckers, other drivers, cargo, and the environment. Hazardous materials haulers have special regulation and truck insurance because their freight is harmful or deadly if spilled in an accident.

To read all of the hazardous materials regulations in depth, click here. Otherwise, here is a brief overview of some of the important facets.

Qualifying as Hazardous Materials

If your cargo qualifies as hazardous materials, then you must register for a Hazardous Materials Safety Permit (HMSP) prior to shipping. The following qualify as needing the permit:

• Class 7 (radioactive) material
• Over 25 kg (55 lbs) of explosive materials qualified as Division 1.1, 1.2, or 1.3
• Any amount of Division 1.5 or higher explosive materials
• Materials that are poisonous to inhale over 1 liter (1.08 quarts)
• Compressed or refrigerated liquefied methane or liquefied natural gas in bulk packaging exceeding 13,248 L (3,500 gallons)

Penalties for Violation

Because they are so incredibly dangerous, the penalties are swift and harsh. The minimum civil penalty is $275.00, while the maximum is $32,500.00. For criminal cases, the individual can be fined $250,000.00 and the corporation can receive $500,000 worth of fines, with either sentence including a maximum of 5 years in prison.

Responsibilities

Here are the duties of hazardous materials shippers:

The most difficult of these can be identifying if you are indeed shipping a hazardous material. The rest should be standard procedure for any trucking company.

Hazardous Materials Insurance

Royalty Truck Insurance offers Hazardous Materials Insurance for trucking companies that frequently ship these types of cargoes. Protecting your business is important, and a crash involving dangerous chemicals can be devastating, so add this extra level of security with a hazardous materials insurance policy.

Follow Royalty Truck Insurance on Twitter @RoyaltyTruckIns

For one thing, a truck has the potential to cause a lot of damage should an accident occur.

Secondly, the cargo must be insured to protect it from any harm or from causing harm if you are a hazardous materials hauler.

And thirdly, your job depends on your ability to drive, so when you are injured or your truck is broken, you cannot earn an income.

Where does this leave the trucker trying to save money and cut costs? Well, luckily for you, a few options do exist. Here are some tips to reduce your truck insurance costs.

Contract or Join a Trucking Association

Many drivers want to operate as an independent business, which certainly has its perks, but to get reduced premiums you could join a large trucking association. Although you lose some of the freedom you possess, the big motor carriers often have agreements with the insurance agencies for lower payments. You will have to make monthly or yearly payments to remain a member, but measured against the premium cuts, you might be saving money in the long run.

Pay Truck Insurance Premiums Up Front

By setting up an annual payment that covers your premiums for the entire year, you are guaranteeing that they will get paid. This is a huge boon for the truck insurance company, so they often offer discounts for this option. If you can afford one lump sum payment, it will save money over the course of the year.

Increase Your Deductible

Numerous studies have shown that having a higher deductible puts the impetus to drive safely back onto the driver. It shows the insurer that you are willing to pay out of pocket for an accident, meaning you are more willing to drive safer, obey speed limits, use caution, and share the road.

Obey Traffic Laws

The problem with receiving tickets or getting into accidents is that they tend to stick with you for a while, hurting your trucking insurance premiums. It would be nice if there was some magical way to wipe it clean but, unfortunately, only time can remove the blemish. This means staying on the good side of the law until your driving record shows a low incident report, which will eventually reduce your premiums.

For more articles and helpful hints, visit our blog and follow us on Twitter: @RoyaltyTruckIns

So how is it possible that there are well-paying jobs available without qualified candidates to fill them? And during a recession? Here are a few of the factors that contribute to the industry need for more truckers.

Increased Regulations

The change in laws to hours-of-service by the Department of Transportation’s Fedral Motor Carrier Safety Administration in December 2011 has made trucking paychecks insufficient for covering the expenses of potential employees. New regulations aimed at making the roads safer for truckers and other drivers also changed how many hours a trucking professional could log weekly. They were no longer afforded the ability to drive continuously, making their positions less profitable.

In addition, the changes required that new drivers be hired on to meet the demand created by the reduced work week. These new positions, in many cases, were only part-time or offered less hours than the current drivers were allotted. So instead of filling them, truckers took their talents elsewhere for more money.

Better Paying Jobs

After hitting disastrous lows, the housing industry has been slowly returning to pre-recession values. This means a need for new houses, in addition to existing ones.

The State public works departments are also beginning to rebound, meaning more public projects are being started, such as bridges, tunnels, road improvements, new buildings, etc.

Both of these fields open up positions for people with construction backgrounds, or people able to haul heavy materials. With State funding behind them, many truckers have chosen these well-paying positions over those in the trucking industry.

As an added perk, the employee can remain closer to his/her family, rather than spend weeks on the road, important to young men and women.

Difficult to Attract Newcomers

So why doesn’t the trucking industry target drivers that do not have experience? Well, it is hard to convince them towards the lifestyle and it is more expensive for companies.

Truck drivers work crazy schedules, don’t get to regularly see family and friends, and have to endure grueling drives alone. This is not very attractive to a twenty-something used to the luxuries of cell phones, tablet computers, and big screen, Hi-Def TVs. Selecting a stable, financially beneficial job over one with long hours and sporadic schedules is a no-brainer.

Furthermore, new drivers typically are more expensive to the commercial trucking company. How do you attract a new workforce to a demanding, high risk, career? By offering them enough money that they cannot reject the offer. But then you have to pay the veterans more, which is difficult to budget even without the rising fuel prices that are hurting the industry. Plus, new truck drivers often cost more for truck insurance because they do not have the experience to be granted discounts.

What is the Solution?

Unemployment in America is still hovering around 10% and a double-dip recession is a distinct possibility, especially with European financial troubles and high gas prices skewing the value of items. As long as these conditions remain, there will be people in need of jobs and willing to try out something new. So just keep advertising the job openings and the bait will eventually attract the right fish. Hopefully the recovering economy will grant trucking employers extra capital to properly pay drivers and create desirable positions.

Follow Royalty Truck Insurance on Twitter for more trucking news: @RoyaltyTruckIns

Luckily, early reports said that the crash isn’t dangerous to local people, but precautions are being taken regardless. Traffic is being diverted until the mess is cleaned up.

Hazardous Materials Insurance

Many truck drivers don’t realize that transporting hazardous materials requires additional protection from your truck insurance company. Because of the added risk to property, human life, and the environment, coupled with the special needs to clean up a spill, you will need to purchase hazardous materials insurance if you plan to drive certain cargoes.

National and State legislations also require certain standards for these types of materials. Oftentimes, insurance coverage exceeding $1 million is needed to fully insure dangerous freights. This may seem excessive, but imagine the damage caused by a tanker full of fuel getting hit and catching on fire.

Some examples of cargoes that could require hazardous materials haulers insurance include fuel, combustible gasses, poisonous chemicals, fertilizers, and other regulated materials. Check the local laws of states you are driving through to ensure that they do not require additional coverage.

Royalty Truck Insurance has been providing policies for over two decades and is well-educated in the specifics of the commercial trucking insurance industry. Feel free to contact us with any questions or inquiries you may have.

Follow Royalty on Twitter for trucking news and tips: @RoyaltyTruckIns

Before you even start, make sure to scrape all ice off of the windshield, windows, mirrors, and headlights. This will optimize your visibility while driving.

Items to Pack

In addition, there are some extra supplies you need to bring with you before departing in case of an emergency:

Flash light and gloves: These will help you change a tire or repair your vehicle when it is cold and dark outside.

Blankets: If you get stranded, these will prevent you from getting chilled.

Extra food: You will need carbs to survive if you cannot leave your truck for a few days, in case you get stuck in a snow bank.

Snow chains: It is easier to put these on before your journey, but ensure you have them regardless and know which states require them.

Tips for Driving in the Snow

Maintain a full tank of gas. Keeping you tank as full as possible reduces condensation in fuel tanks. If you stop at a gas station to stretch and relax, fill your tank before resting.

Be cautious: Leave extra space between you and the car in front of you. Reduced friction on the road, coupled with increased risk of running into a sudden accident, means you want as much stopping time as possible.

Slow Down!: Adjust your speed based on your current situation, like road and weather conditions, rather than speed signs and maintaining a schedule. This means avoiding using the cruise control to determine your speed.

Be prepared: Know about approaching truck stops and have a sense of when the weather is supposed to get worse.

Truck Insurance

Remember that sloppy driving doesn’t just put you at risk; it also is a threat to your fellow drivers on the road. Also, poor and negligent driving can have the consequence of raising your truck insurance rates. Employees with high truck insurance have a harder time getting hired, because they cost more to insure. This winter, drive smart and stay safe.

Check out our Blog with articles like this one about the trucking jobs added in 2011. And follow Royalty on Twitter for more news and truck tips @RoyaltyTruckIns

That strong November puts the trucking employment up by 33,800 jobs from the past year, or equivalent to 2.7% from November 2010. These numbers are optimistic for a reeling economy and unstable job market.

The trucking figures follow nationwide trends, where the entire U.S. economy added around 120,000 jobs in November 2011. This number could be due regular holiday-fueled consumerism, with an increased need for deliveries, but the upward trend is positive.

Truckers are optimistic about the news, especially coming just two years after jobs hit the recent low, in March 2010. Employment is up by 62,600 jobs since then, or 5.1%.

The numbers only reflect newly created jobs and do not account for replacements made in previously existing positions, meaning the number of truckers no longer jobless could actually be higher.

Happy Holidays!

With holiday spending up from 2010, let’s hope that the job rate continues to increase to support the need for extra deliveries and that they become permanent positions. If this is a signal that the economy is on the rise, maybe the trucking industry will reach its employment peak from January 2007 before the market crashed.

Happy Holidays from Royalty Truck Insurance! May you all have safe deliveries and avoid the winter weather!

Follow Royalty on Twitter @RoyaltyTruckIns and check out our blog, where we make news announcements and gives truck insurance policy advice. Check out this article on Form MCS-90.

Form MCS-90

The Form MCS-90 is financial responsibility for motor carriers. This is broken down into three parts.

Financial responsibility is an assurance that a truck driver has the minimum in insurance policies and surety bonds to cover public liability requirements.

Public liability covers bodily injury, property damage, and environmental restoration.

Environmental restoration is the repayment for the destruction of natural resopurces due to a discharge of harmful or toxic chemicals.

In order to have full financial responsibility coverage, the drivers of commercial and inter-state vehicles must have at least the minimum amount of truck insurance that the law requires. This protects all parties in case of an accident.

Proof of Coverage

In order to prove that you possess the minimum coverage, keep  one or more of the following with your truck at all times:

• MCS-90 Form
• Endorsements for Motor Carriers policies that is issued by insurance agency under the Motor Carriers Act of 1980
• Motor Carrier Surety Bond that is s=issued by a surety
• A written authorization from the Interstate Commerce Comission authorizing you to self-insure your vehicle.

Commercial Truck Insurance

Filling out all of the paperwork to make sure that your vehicle is working within the law can be stressful. Luckily, your commercial truck insurance agent can lend a hand by doing all of the fillings. At Royalty, we dot the i’s and cross the t’s, along with all of the other writing. Choose us for all of your commercial truck insurance needs.

Our Truck Insurance Blog has great articles on recent news in the industry, as well as tips, like this one on losing weight.

Follow us on Twitter for more info @RoyaltyTruckIns

The First Slavic Truck Fair was conceived from a 2010 idea to hold a nation-wide poetry and music competition for truck drivers. This contest yielded over a hundred submissions and led to the creation of this exciting cultural event, allowing truckers to creatively express the intricacies of their profession. Winners received monetary prizes and national recognition from their piers in the trucking industry.

The all-day affair included concerts with musicians performing for the general public, games, food, arts and crafts booths, and souvenirs. In addition, business portions of the day where commercial truck insurance agents, truckers, construction and hauling companies, and auto repairmen could meet and establish new connections and contracts proved quite valuable.

Participants in the First Slavic Truck Fair received a free CD compiled of the best submitted songs. All in all, it was an exciting, successful day for everyone involved!

Royalty Truck Insurance

Royalty Truck Insurance was proud for our part in the First Slavic Truck Fair. Our booth was a popular attraction and all of our employees had truckloads of fun (pun intended)!

View our pictures from the event posted below and check out our Truck Insurance Blog where we post industry articles, announcements, and policy changes. Last week, the drop in price for diesel was discussed.

Along with the common truck maintenance procedures, you should also follow this winter auto checklist to keep your truck and drivers safe. Don’t let freezing temperatures, snow, hail, and slippery roads harm your truck and cause your commercial truck insurance rates to increase.

1) Check your antifreeze: One of the first things you should do is check your antifreeze. This fluid is crucial to winter maintenance. Make sure that your vehicle has a 50/50 mix of antifreeze and water so your radiator doesn’t freeze when temperatures fall below 32 degrees Fahrenheit.

2) Buy snow tires: Some cars may be able to get away with just having deep-treaded tires, but trucks are a beast unto themselves. You need the safest possible measures to ensure nobody gets hurt and no damage is done. Either the studded tires or super deep treads are both acceptable, but one or the other is necessary.

3) Maintain clear visuals: One of the most important aspects of driving in a snow storm is being able to see. Replace old windshield wipers and replace windshield washer fluid. Both of these will keep your front windshield clear and your truck inside the dashed lines.

4) Change brake pads: The last thing you want affecting your stoppage time is bad brakes. Snow is one thing; worn-down brakes are another.

5) Equip your truck with emergency gear: If you do not already have emergency gear somewhere in your truck, now is the time to do it. Along with a flashlight and jumper cables, make sure you have gloves and boots, in case you have to work in the snow.

Commercial Truck Insurance

For more information on commercial truck insurance, winter auto checklists, or getting a quote, visit our Blog where we post helpful articles that provide expert insight, like this one about reporting a claim.

Follow us on Twitter for more updates to commercial truck insurance policies @RoyaltyTruckIns