Common Misconceptions About Trucking Insurance

Trucking Insurance

The intricacies of commercial trucking insurance can often be challenging to understand. This can lead trucking companies to have coverage lapses, underinsured vehicles or drivers, and missed payments.

Unfortunately, the abundance of misinformation about commercial trucking insurance has given rise to several misconceptions.

Downtime Insurance Is Not Necessary

Downtime trucking insurance protects your trucking business when you are dealing with physical damage claims or truck repairs. This insurance offers compensation for the loss of income from your inability to operate the trucks due to damage.

When an accident causes your trucks to be out of commission, and you are experiencing a loss of income, expenses such as paying for a rental truck and towing costs can also add up. Downtime insurance reimburses you for such costs, so you do not have to worry about emergency expenses while your trucks are out of service. Other types of insurance policies may not cover the loss of income. 

Cargo Insurance Must Be a Separate Policy

Another common misconception is that trucking companies and truck drivers must carry a separate insurance policy for the type of cargo they carry. However, purchasing a separate cargo insurance policy can be more expensive, which is why you should consider adding this coverage as an add-on to your existing trucking insurance policy.

This can help you save money on trucking insurance. It also saves you the time of filing two separate claims with different insurance companies if you get involved in a truck accident where your truck and cargo are damaged. 

All Employees are Covered When They Drive an Insured Truck 

Many fleet managers are unaware that if the trucking insurance policy does not include permissive use of the insured commercial motor vehicle, every employee driving said vehicle might not be covered. Permissive use implies that drivers who are permitted to operate the truck are covered by the insurance policy.

However, most insurance policies only provide coverage to drivers named explicitly in the policy and do not offer the option of permissive use. So, if you want to expand the coverage to more than one driver, check with your insurance provider about their permissive use policies.

Commercial Trucking Insurance Covers All Types of Truck Uses

Many trucking companies believe that a commercial trucking insurance policy will cover accidents when the truck is being used for personal reasons or off-road, such as, on a client’s property.

But that is not always the case. Most insurance policies do not cover damage when the truck is not out for official business. You might have to obtain additional coverage for such purposes by checking with your insurance provider. 

Truck Insurance Premiums Cannot Be Reduced

There are several critical factors that determine the value of an insurance premium. This includes the driving records of the drivers and the type of cargo. While insurance premiums can be high, that does not mean you should not seek a discount. Many fleet managers and carriers often opt out of choosing a good insurance policy because of high insurance premiums.

You have a few options to get your insurance premiums lowered. One option is to pay a higher deductible in case of damages. Your upfront costs may be high, but your insurance premiums would be significantly lower.

You could also pay for the entire policy upfront, which could result in a discount. Another option is implementing safety programs to help your drivers keep a clean record. This can reduce your insurance premiums.  

Trucking Insurance Companies Assist With Federal and State Filings

Trucking companies can be required to submit state or federal filings. It is a common misconception to assume that all trucking companies assist in federal and state filings. If you need this service, you must look for an insurance provider that offers it.

Working With a Trucking Insurance Agent Is Unnecessary

Although the rates you get for insurance might be the same whether you decide to contact the insurance company directly or go through an insurance agent, the downside of not working with an insurance agent is that the insurance company may prioritize their profits over your best interest.

Working with an insurance agent can also help you expedite the process of getting insurance. They can also conduct research to help you purchase proper coverage for your trucking business. Your trucking insurance agent can also help you get discounts on insurance premiums.

Cancelling Insurance During Off-Season Is Cheaper

One common misconception regarding trucking insurance premiums is that cancelling insurance policies during the off-season can help seasonal trucking businesses save money. But that can have significant drawbacks. For example, if you cancel your insurance policy during the off-season and a theft or vandalism incident occurs, you will not have insurance to cover the damages.

Suppose you want to avoid unnecessary liability coverage during the off-season. In that case, you can opt for comprehensive-only coverage, which would still provide coverage in incidents such as fire hazards, vandalism, and theft.

Price Is the Most Crucial Aspect When Choosing Trucking Insurance

Often fleet managers and owner-operators make decisions regarding trucking insurance based solely on the price of the insurance policy. Unfortunately, this generally results in them choosing a policy that does not meet their business’s insurance requirements and ending up with the wrong type of coverage.

However, the price of the insurance policy is one of many factors to consider when choosing the right coverage. Instead, you should research policies offered by different insurance providers and pick one that suits your needs best.

Every Truck Insurance Company Provides 24/7 Service

Most insurance companies might only provide customer service during office hours which can be inconvenient for fleet managers and truck drivers for various reasons, including if they want to add a vehicle to their policy, file a claim after an accident, pay bills, or obtain an insurance certificate.

Therefore, before purchasing an insurance policy, ensure that the insurance provider is available when needed. You can go to this website to learn more about trucking insurance.