Accidents Happen – Make Sure You’re Covered
Trucking is a risky business. Even if you practice safe driving at all times, you could still be involved in an accident. That's why quality insurance coverage is so important.
Truck insurance protects you and your equipment from financial loss or other claims that may be made against you. Just like with car insurance, you pay a premium that is based on the value of your equipment, and the insurance company agrees to pay up to certain monetary limits if an accident or damage occurs.
Three types of insurance most useful to owner-operators and fleets:
Pays for repair and replacement of your truck if damaged or destroyed in a collision or other accident, regardless of fault, as well as loss from fire, theft, vandalism or natural disasters. Make sure your coverage is at least equal to the market value of your equipment.
Provides personal liability (bodily injury) and property damage coverage when your truck is not under lease agreement to a regulated carrier. It’s a combination of "deadhead liability“ (when the driver/truck is not dispatched) and “bobtail liability” (truck operated without a trailer attached)—both of which are generally not covered or inadequately covered by the regulated carrier’s policy.
In the event of a total loss, gap insurance pays the difference (or “gap”) between what you owe (outstanding loan amount) minus what the insurance company says the vehicle is worth at the time of loss. There is no deductible for gap insurance, which means there are no out-of-pocket expenses incurred by the policyholder at the time of claim.
You can purchase insurance directly from a carrier, an association, an agent or through a SelecTrucks Center. “In-contract” insurance—coverage that’s purchased and included with truck financing—offers certain advantages, including the following:
- Insurance premiums that are rolled into the contract
- Insurance binder (contract) is issued on-site—you leave with proof of insurance
- No out-of-pocket expense (no up-front payment) required
- Only one combined monthly truck and insurance payment is required--and the first payment may be delayed up to 45 days
- No rate increases--you’re locked into same rate for the term of loan
- Insurance “travels” with the truck—no need to worry about insurance every time you lease on with a new carrier
The key with insurance is making sure you know what’s covered and what your risks are in any circumstance. In the event of an accident, it may mean the difference between owing nothing and owing everything.
Have questions about owner-operator or fleet insurance? Your nearest SelecTrucks Finance & Insurance Manager can help.