What Is Hot Shot Trucking Insurance?

Posted on January 31, 2019

Hot shot trucking insurance policies are provided by companies that allow the use of trucks to carry loads which are needed in a short period. Usually, these loads are less than a truckload, and they need to be delivered within 24 hours. Additionally, the trucks can be used to tow and pull large trailers to haul the loads. An advantage in the hot shot trucking services is the fact that it is a freelance and you don’t have to sign some contracts for you to deliver goods to any company. Moreover, anyone can be a hot shot truck driver as long as you have a driver’s license from the Department of Motor Vehicles (DMV).

1. Hot shot trucking insurance requirements

Hotshot trucking is like any job, and it needs to be insured to give your customers comfort that you can deliver their loads on time. Additionally, it allows your clients to be satisfied with your service and have comfort in knowing that they can get a refund of their load in case of damage or loss. Here are some of the hot shot trucking insurance requirements:

• You need to have a commercial driver’s license and truck driving experience this will ensure that you get charged less for your insurance
• You are required to pay $750,000 to the (FMCSA) federal motor carrier safety administration to cover any liabilities, but most of the shippers and load brokers need you to have paid $100,000
• The minimum amount of insurance required for your truck is $5,000, but most shippers prefer you to have $100,000 cargo insurance for safety purposes
• You are needed to have physical damage coverage for your trailer and truck to ensure that all your loads are protected from any physical damage
• It would be best if you had an IRP registration cover for your truck and PTI for all your trailers
• It would help if you had DOT and MC covers for you to be allowed to cross all the state lines

2. Cargo insurance considerations

There a few things you to consider when insuring your cargo for hot shots truck services. This is because in case of any damage you need to be sure that your insurance coverage can cater for everything. Additionally, your cover should be able to be changed on short notice in case you want to transport a more significant load.

Also, you need to find an insurance cover that is flexible and covers your loads from a trip to trip. Always ensure that the insurance policy you signed covers all this and you do not miss out on jobs.

3. Benefits

• Truck drivers are freelancers

This means that the truck drivers can work for any company they prefer without signing any contract. This allows you as a truck driver to have as many clients as you would handle with no problem. Sometimes contracts can restrict you to one place but working as a freelancer driver means that you got the freedom to choose which company you want to work with.

• You are your boss

Being your boss is a fantastic feeling that you can get especially if you are used to being employed. The idea that you are the one who comes up with all the decisions and you are the one who makes a plan and the schedule you want to follow for the day gives you so much freedom. Furthermore, being your boss gives you the freedom to choose which route you want to follow for you to deliver the load. Have you ever worked with a trucking company that needs you to follow a specific direction? That feeling can be exhausting and being able to make your own decisions allows you to do a great job.

• Freedom to choose your cargo

When you are hired by a company you don’t have the privilege to select the kind of freight you want to carry, and you are obligated to carry whatever the company loads. However, as a hot shot truck driver, you have the freedom to state what you want to be put in your track without anybody questioning you. You are your decision maker, and anything you say goes with fewer questions asked.

4. Challenges faced by the hot shot truck drivers

There isn’t any business in the world that does not have its problems. The hot shot trucking services are no, and the drivers are faced with all sorts of challenges. The challenges toughen you up and make you endure the business and celebrate when the good times hit. If you are a new driver, you are likely to face more challenges than the person who is already used to the business. Some of the challenges include:

• Buying the insurance cover to your truck and trailer, this is because the insurance cover can be expensive.
• You have no regular schedule, and this can make you slack in your business especially if you are used to having a program to follow.
• Getting a proper truck and trailer for your business can prove to be difficult since you need to have one that can be able to handle heavy loads.
• Truck maintenance can be a bit expensive not to mention take up your time. However, you need to keep your truck in shape for it to serve you for a long time.

Conclusion

Before getting into the business, you need to know how hot shot trucking works. Additionally, you need to be equipped on the hot shot trucking insurance requirements for you to know how you will go about the business.

Bobtail Insurance For Trucks – What You Need To Know

Posted on January 22, 2019

If you are driving a huge truck, you will have to undertake many responsibilities to safeguard your personal and financial interests. Unlike a conventional vehicle like a car or a van, a truck is a different line of transportation where you need to take care of additional insurance and coverage liabilities by yourself.

As a trucker, you must understand the need and reasons when it comes to bobtail insurance vs. physical damage coverage requirements. Without prior knowledge of the bobtail insurance, and the physical damage coverage options, you will be putting yourself at risk by taking out your truck on the road.

Commercial auto insurance policies for trucks includes the bobtail insurance. If you are a new truck driver wondering when do you need bobtail insurance and why the answer is a relatively simple one, when the truck does not have a trailer attached to it, you will be eligible for the bobtail coverage plan for trucks.

So, the policy is for you if you meet either of the undermentioned criteria.

1- You are a truck driver, operating a truck that belongs to someone else and it does not have a trailer attached.
2- You want to protect yourself from legal actions, or expensive court settlements in case of accidents and collisions of your truck with other vehicles.
3- Your motor carrier policies include carrying the insurance.

Physical damage coverage is the comprehensive vehicle coverage plan that is similar to the insurance plans of other commercial vehicles. It will cover your truck for damages and losses that are the part of your policy. When you go for the physical damage plan, you sit with the policymaker and discuss all options for coverage that will safeguard your financial and safety interest as a trucker. The premium of your physical damage policy will depend on the number of covers you apply for in the plan. You have the option to go for multiple insurance plans at a time or select a method that meets your basic insurance requirements.

How will the Bobtail Insurance Protect You?

The Bobtail policy is exclusive to liabilities. It gives you protection in case of a truck colliding with other vehicles, and the carriage is in someone else’s ownership. In this situation, it goes without saying that at the time of the accident the truck must not have a trailer attached to it.

You will get coverage if you are returning after the delivery of the load.
You get into an accident while you are going to pick the first load.
You get into an accident as you head to your home after the deliveries and are driving the truck.

In all the above scenarios it is important to remember that the policy will not cover and pay for the physical damages of the truck. It will cover other necessary expenses that include legal fees, medical costs, injury claims, and settlement issues.

The Bobtail Insurance Average Cost

Like many vehicles insurances, this type of insurance also checks for many factors that contribute to the average cost of the policy. When a truck driver asks for this insurance, the provider will check for details such as the driving history of the truck driver, any prior accidents on record, the limit requested by the driver, and how many instances will the truck be on the road without a trailer. A driver with no prior accident and a request for a reasonable limit will get the policy for lower rates. On the other hand, if the driver record is not clean, and there are many violations of traffic on his license, not only the price of insurance will go high, but the insurance company has the right to decline the request. On average, with every other requirement met, a truck driver can get the policy for $30 to $60 per month that will provide coverage up to $100,000.

Luckily with fierce online competition, it is not difficult to schedule your quotes online. When you shop for this insurance plan you will find some insurance companies that are exclusively offering this specialized trucking coverage, and you have an option to reach out to the insurance agent, or some sites have interactive features where you can schedule your bobtail insurance quote online as per your requirements.

How to Get the Best Policy?

Like any other policy, the main things to consider when looking for the bobtail insurance is to get at least three quotes and compare the prices and the features of the plan. While you want to save money, you will not want to align yourself with an insurance provider where you make a few dollars savings and let go of some critical insurance cover in the policy. Carefully go through the policy features, read the fine print and seek consultancy with the insurance agent for the matters where you want more information and details. Usually, you will get a no-obligation consultancy with the insurance providers so you should capitalize on that and get all the details from few insurance providers before you decide to purchase a plan.

You can get the coverage in a matter of minutes; however, it is in your interest to align yourself with a quality insurance provider. As a rule of thumb, stay away from agents who offer you cheap third party insurance options, or huge discounts that otherwise does not make any sense. You can find many reputable insurance agencies that will provide you with bobtail insurance at competitive rates. Always check for the insurance company details, such as the number of years they have in this business, the total insurance portfolio, and the claim settlements. A good insurance provider will gladly share all these details with you and give you the security and assurance you look for in an insurance plan. Remember that in case of an accident you should immediately reach out to the insurance company as soon as possible and document your case. If you delay such reports, it can impact your situation and reduce the settlements you may otherwise get for the liabilities.