Non-Trucking Liability Insurance: A Comprehensive Guide for Owner-Operators

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Owning a commercial truck means that you have the freedom to work for yourself without having to commit fully and independently. You have your primary liability coverage that covers you when hauling loads for a company, but how about while just driving yourself or family members in the truck? Enter Non-Trucking Liability Insurance (NTL) or Bobtail Insurance. This post will walk you through everything there is to know about NTL insurance, including what it protects and when you likely require this coverage but do not have it.

Non-Trucking Liability Insurance (NTL) is a specifically named insurance coverage created for independent truckers and owner-operators. It offers liability protection when your truck is used for personal or non-business-related reasons.

Why is Non-Trucking Liability Insurance important?

Your primary policies do not protect you while you are off the clock or using your truck for personal errands. This coverage gap could put you at risk for hundreds of thousands in out-of-pocket losses when an accident arises on those days. Thankfully, NTL insurance can help close that gap by providing liability protection for those non-business activities.

Here’s why NTL coverage is important:

Financial Protection: As is often the case with accidents, they happen at random times and when you’re not working. NTL coverage means that should damages or injuries be caused while your truck is not being used directly in relation to your business, you will have protection from having to pay for these consequences yourself.
Compliance with the Law: In some instances, you may be required to obtain NTL coverage to fulfill the expectations of state and federal regulations on minimums for this type of coverage. You should speak to an insurance agent about whether this coverage is mandatory.
Peace of mind: feeling secure knowing you are covered if something were to happen even when off the clock; accompanying family or friends in your personal hauler without worrying about having to pay for an accident.

When does Non-Trucking Liability Insurance apply?

NTL coverage is intended to be used during periods when your truck does not have business use. Here is a scenario in which NTL coverage would apply:

Driving to or from home: If you are delivering a load and then driving home, but not on dispatch.
Personal Use: If you use your truck for personal things like going to the store or visiting friends.
Maintenance of Trucks: Should a driver take his truck for repairs or regular maintenance work and be requested to drive it back on the road unhitched, he will be covered by NTL insurance in case anything happens.

However, there are times when Non-Trucking Liability Insurance does not apply:

Hauling Cargo: If you have a load for a company or are under dispatch, your primary commercial liability will cover you. In cases such as these, NTL coverage is not applicable.
Deadheading: If you are driving your heavy commercial truck without a trailer (deadheading) but still under dispatch or company time, NTL coverage will not protect you.
Any Business-Related Activity: NTL insurance is not available for business use. Your commercial insurance will cover you if you are undertaking any business-related activity, even if it does not involve carrying cargo directly.

What does Non-Trucking Liability Insurance cover?

NTL insurance offers liability coverage, so whenever you are not doing any official duty and, at that time, if you hurt anyone or damage other property, this covers it all. These are some usual detections:

Bodily Injury Liability: If you injure another person in a crash, NTL guarantees the injured party’s medical costs, missing incomes, and other similar prices.
Property Damage Liability: If you are responsible for an accident that causes damage to someone else’s property, like a car, then NTL coverage will pay the repair or replacement costs.

Overall, it’s essential to remember that NTL coverage is not offered for:

Damage to Your Own Truck: NTL coverage only covers liability, which implies they would not pay you back while your truck should be fixed after an accident whereby the fault has been pointed out to yourself. You will need another physical damage policy for it.
Cargo coverage: Cargo coverage is not available through NTL coverage. Your standard commercial insurance should cover cargo if you are hauling a load.
Medical Payments or Personal Injury Protection: NTL coverage does not typically extend to paying for your medical bills and passenger injuries. You may need extra coverage for that.

Choosing the Correct NTL Policy

Selecting an incorrect NTL policy can result in insufficient coverage and paying too much for insurance.

Get quotes from more than one provider
Rates between insurance providers can change by more than you realize. As such, getting a complimentary or low quote from different companies can help you understand how much everything is available for.
Discounts
Check if the insurer offers a discount for non-accidental and risk-free drivers. Ask if there are any discounts for customers who have good files.
If you carry other lines of insurance, such as sections writing this policy in connection with a commercial liability or comprehensive physical damage policy, most providers will provide a discount when you bundle multiple policies.
Work with an experienced insurance agent
An insurance agent who specializes in trucking insurance can help you navigate the complexities of NTL coverage and find a policy that fits your specific needs.
Remember to ask about any other coverage you may need and keep an eye out for all your insurance gaps.

The Cost of Non-Trucking Liability Insurance

The cost can vary depending on some factors, including:

Driving record: Having a good driving record helps reduce rates, while at-fault accidents or convictions raise them.
Truck Type: The make, model, and age of your truck will also play a role in the cost of NTL coverage. Trucks that are newer and equipped with the latest safety technology may earn drivers a break on their rates.
Location: Your rates may vary based on where you will be running this vehicle. It is a factor for determining rates in areas where accidents are more common.

Depending on these factors, the usual charges for NTL insurance can vary between $30 and $50 per month. So, you must compare and get different quotes to find the lowest rates in your region.

Royalty Truck Insurance Services: Your Insurance Pit Crew

Since ’99, we’ve been on the trucking scene, making sure drivers like you have the insurance they need. At Royalty Truck Insurance, we’re all about turbocharged service. Need a quick quote, insurance certificates in a flash, or a coverage change? We’re on it with tech that keeps things rolling smoothly.

If you’re ready to gear up with non-trucking liability insurance or need to chat about your coverage options, from Bobtail Liability to Unladen Truck Insurance, give us a call at 866-989-8998. At Royalty Truck Insurance, we’re more than brokers; we’re your road-tested allies, making sure your insurance journey is clear and cruising.