If you have a vehicle for personal or business, you are required to have insurance. This is typically paid when you register your vehicle to be on the road and is required by law. But beyond that, you do not need to get extra insurance and if you are in an accident, it can be quite costly. For this reason, many people choose to buy supplementary insurance or in the case of a business, trucking liability insurance.
Typically the extra insurance people buy is a type of liability insurance. You get a minimum amount required by law when you insure your vehicle but if you buy extra, it will cover you for any costs above that. For instance, if you are found to be at fault for the accident but the damages are more than what the minimum covers, the extra will cover those fees.
Collision coverage will cover the cost of your vehicle in the case of an accident. If your vehicle is older or not worth very much, it likely is not worth purchasing extra coverage as you will not get your money’s worth You will have to pay a deductible and that may be more than the value of your car.
Another type of insurance you can purchase is comprehension insurance. Depending on where you live or how much driving you do, it may make sense to buy it. This covers situations that were not an accident such as damage due to weather or someone stealing your car. You can buy a variety of market tools that are deterrents for theft but as with the insurance, depending on the value of your car, it may not be worth it. This type of insurance can be costly and the fee for it may be dependent on what your vehicle is worth.
Another type of insurance you may choose to purchase is personal injury protection. When you are in an accident, the costs associated with it can add up quickly. This insurance will cover any medical bills that you incur as well as anyone else who was in your vehicle. This type of insurance may be expensive and is optional but may not be available where you live.
While all these types of insurance apply for a personal vehicle, there are other insurance considerations if you are running a business. If the business vehicles are just to run around town, you should be fine with regular insurance. But if you have a shipping business, or other type of business with a fleet of vehicles, you are going to want to look into trucking liability insurance and other types of insurances that will be beneficial.
For a transportation company, trucking liability insurance will cover damage that was unintentional either to their property or others property. If a truck is pulling into a dock but accidentally hits something, the insurance will cover it. Damage covered includes other property, vehicles and pedestrians if something were to happen.
Beyond trucking liability insurance, cargo insurance is a good idea for a company that is hauling goods. If something happens to the cargo in transit, a claim can be put in and the client will be reimbursed for damage. This keeps the trucking company from having to pay for it out of their own pocket.
Another beneficial type of insurance is environmental liability insurance. If your vehicle is hauling cargo that could be toxic to the environment or contributes to pollution, you will need a special policy that will cover the cost of a cleanup if there is an accident. As with any other insurance, there are conditions to this that should be discussed with your insurance broker.
Hot shot trucking insurance is for truckers who specialize in the transportation or expedition of cargo. Often times, expediter’s insurance and hot shot insurance are used interchangeably. And, if you are a trucker, shopping for hot shot trucking insurance can be a daunting and overwhelming task. With so many companies competing for your business, it is hard to know which one to choose.
Hot Shot Trucking Insurance Factors
Gaining an instant quote online might give you a spread of over $8,000, so it is hard to determine which policy to choose without first giving all the pertinent information. There are several factors that ultimately determine your insurance premium.
– The type of insurance agent you choose and the companies they represent
– The minimum coverages you need
– Any additional coverage you want
– Your limits and deductibles
– Your personal credit score
– The state in which you live
– Your CDL experience and driving record
– The class of your truck
Insurance Coverages
You will want a well-designed insurance policy to cover you in nearly every situation. Some of the available common options include the following coverages:
Comprehensive – Comprehensive insurance protects your truck on-road or off from physical causes of loss, fire, vandalism, and theft. You will want to ensure that your comprehensive coverage applies to both your truck and your trailer.
Collision – Collision coverage protects your truck in the event of a collision with a stationary object, other vehicle or rollover accident.
Binders, Tarps, Chains and Ramp Coverage – This coverage protects all of your valuable and costly equipment in case of vandalism, fire, theft or other damages.
Storage and Towing – This will provide you with the coverage you need in case you need to store your truck or have it towed.
Combined Deductibles – Combining your deductibles allows you to make one deductible payment in the event where multiple deductibles would apply.
Family Emergency Expenses – This allows for traveling and other expenses that your family incurs in case you are injured while on the job away from home.
Downtime – Downtime coverage provides a fixed rate paid to you every day for a month if you are out of work due to your truck being stolen, rendered useless during an accident or collision or inoperable due to vandalism or theft.
Loading and Unloading – Loading and unloading covers all goods or commodities while in the process of loading or unloading them from your truck.
Pollution Coverage (Broad) – provides liability coverage for your covered vehicle in the event of pollution discharge while transporting, loading or unloading cargo.
When it comes to hot shot trucking insurance, the best route to take is talking to one of our available insurance agents and find out which options fit you and your trucking insurance needs. Whether you fill out our form for a free quote or live chat with one of our helpful agents, Bobtail Insurance is always there to help you get the coverage you need and answers to all your questions.
Are you an entrepreneur who uses a commercial truck? Or, do you have trained and certified truck drivers who deliver freight across the country? Or, do you simply have truck drivers who make deliveries for you? If any of these situations apply to you, then you need to select the perfect insurance for your business. Contact a local independent agent who deals with commercial insurance. The agent will not only find you the best insurance policy for your business at a competitive rate, but also tackle every area of your business coverage, including commercial truck insurance, general liability, and property coverage.
Before you choose the type of cover needed for your truck, it is good to note these commercial truck risks:
• 70 percent of truck collisions report only property damage
• 22 percent of truck crashes result in injuries
• Nearly 130,000 people get injured yearly in truck accidents
Commercial Truck Insurance Coverage
Just like all the other car insurance policies, commercial truck policy comes with various types of coverage. Each cover is meant to offer protection to your business and personal assets from tragic losses. The insurance coverage you may need include:
Auto liability insurance– will cover you from risks arising from damage or injury to others in case of an accident caused by you or one of your drivers. In most cases, this insurance carries two components- liability against personal harm and liability against property damage. Auto liability insurance is mandatory in most states, but the minimum insurance value varies from one state to the other. Although it would be statutory satisfying to have minimum insurance, it is always advisable to invest a little bit more into the auto liability insurance to be able to meet the incidences without financial challenges.
Physical damage coverage- includes collision coverage and comprehensive insurance. Physical damage coverage will protect you against damages to your truck from a crash or any other incident.
Uninsured/underinsured motorist coverage- will cater for damages and injuries if you or your driver gets in an accident with another driver who is at fault, but does not have enough coverage to cater for your injuries as well as property damage.
Truck cargo coverage- will pay for damages or theft of components being hauled by your truck.
Getting Commercial Truck Insurance Quotes
The truck insurance quote you get will depend on the type of the truck as well as its use. As such, it can be difficult to compare different quotes side-by-side, for the same types.
Luckily, there are independent agents who can help you compare quotes from several different insurers. Having an agent who takes his/her time to understand your concerns and assess your risks will save you time and money. The agent should be able to get several quotes that suit your truck insurance needs.
To get accurate quotes, it is important that your agent knows:
• The type of trucks you will be driving
• How many trucks your business has
• How the trucks will be used
• How far they will be driven and how often
• Whether your trucks will be transporting hazardous materials
• Whether they will be crossing state boundaries
• The details of drivers in your company including their driver’s license numbers and the kind of training or certification they have.
If you start your truck insurance quote online, you will have an idea of what rates to expect, but to ensure your business risks are well-managed; it is good to look for an agent.
How Much Will You Pay for your Commercial Truck Insurance?
How much you will pay for your commercial truck insurance will be determined by several factors including:
• The type of business
• Your vehicle
• Your geographic location
• Your driving radius
• The driving histories of your drivers
• The limits required
How to Save on your Truck Insurance
Truck insurance can be cheaper if you can be able to secure all the discounts available to you. These discounts can be in the form of loyalty bonuses, business volume discounts, and claim bonuses among others. The most common discounts include:
Business Experience Discount — This can help you save up to 4 percent on your policy. The business experience discount is available to those whose business has been in operation for over three years.
Commercial Driver’s License (CDL) Discount — This can help you save up to 2 percent on your truck policy. It is available to those who own a Commercial Driver’s License (CDL).
In modern times, finding a truck insurance quote that meets your needs is easy. You can even prepare some questions for the insurer or the agent to answer to help you determine the type of insurance policy that best suits you. Other than finding a policy with enough coverage, ensure the commercial insurance quotes you consider have the deductibles and limits that meet your needs. An independent agent will help ensure that the policy you choose fits your business needs.
If you live in a larger city and hail taxi cabs, you have no doubt heard of Uber. The company is well-known for its ride-sharing app that connects drivers and riders, and often costs less than traditional cab rides. Recently, the company announced Uber Freight or Uber trucking. While the details are sketchy for the company’s new venture, it’s clear the technology direction is focused on self-driving trucks.
Purchase of Otto
Uber recently acquired Otto, a new technology company with plans and development of self-driving kits for semi-trucks. Otto has already tested the trucks by delivering Christmas trees and beer in the San Francisco area, without incident. Uber plans to use drivers for the time being, and it will be similar to its current ride-sharing app. Drivers will respond to the app for long and short driving hauls.
The future of Uber trucking will no doubt include more autonomous deliveries as the technology improves. This poses some questions, excitements, and concerns over replacing truck drivers with trucks that do not need drivers. It also raises several pros and cons to such an undertaking.
Pros of Uber Freight
Just like the self-driving cars, self-driving trucks come with a host of advantages.
Because of the sensors the trucks are equipped with, it would mean less traffic jams. This of course would make deliveries faster since many truck drivers spend a lot of time sitting in traffic, especially in larger metropolitan areas. This, of course, leads to less pollution, which is yet another advantage of Uber trucking.
A self-driving truck is equipped with smart software as well as special sensors, which ultimately should lead to fewer traffic accidents. This would save trucking companies a great deal of money because tractor loads are often totally or partially destroyed during an accident. Even if the contents of the tractor are not damaged, accidents result in a lot of downtime.
Because self-driven trucks don’t need drivers, the semi-trucks are able to operate during the day or night. Moreover, for long distance driving, the trucks would only need to stop for refueling. Even the most experienced truck drivers have to stop and sleep for safety reasons.
Many trucking companies would save a great deal of money with autonomous trucks on the road since there wouldn’t be a need to pay drivers or contractors to haul loads.
Cons of Uber trucking
One of the biggest disadvantages to self-driving trucks is the implementation with other vehicles and trucks on the road that are driven by people. The software and sensors are very useful in avoiding traffic accidents and sitting in traffic jams, but there are more people-driven trucks and cars, which can outweigh the benefits in many ways.
Another con or what could ultimately be a huge expense is laws and rules governing autonomous trucking vs. the current laws for human driven semi-trucks. This alone could be an undertaking that may delay self-driven trucks for many years, especially when it comes to long hauls.
The biggest disadvantage to autonomous trucks is the possibility of software failure or hacking. Technology has come a long way in a short amount of time, but software failures and hacking still pose problems. The concern over self-driven trucks on the roadways with a software failure is the possibility of causing serious accidents.
Lastly, if drivers are replaced with self-driven deliveries, what would this mean to the industry? Many people have long careers as truckers and the threat of not having a job in the future raises a lot of concern. It would literally change the entire industry.
The launch of Uber trucking raises some important questions and concerns as the company seeks to further develop Otto’s technology.
The Federal Motor Carrier Act was passed by Congress in 1980 to reduce the myriad of regulations that applied to for-hire motor carriers. The aim was to encourage more competition among freight transporters by introducing price competition. This was done by introducing self-coverage in the form of MCS 90 insurance, which in practice allowed carriers to publish their own rates of hauling freight to replace the mandatory prices imposed by rating bureaus.
However, the MCS-90 in practice became one of the most misunderstood sections in insurance, civil litigation and the motor carrier industry in general. Different insurers have come up with unique ways of addressing compliance with the Act, which in turn creates extra confusion when it comes to the requirements. Courts also disagree in the way they interpret and apply the MCS-90 endorsement, particularly in the way it relates to the underlying insurance cover. It’s therefore important to learn the distinction between what MCS-90 is and isn’t.
Proof of Financial Responsibility
While the main aim of the Act was to ease regulations, it also had additional requirements imposed on motor carriers. This Act required each carrier to provide some proof that they have the financial capability equal to, or exceeding the thresholds set by each state. Specifically, all carriers are obligated to ensure that their vehicles have in effect the minimum levels of responsibility. The proof of this financial responsibility also had to be maintained at the carrier’s premises.
Carriers could demonstrate their financial responsibility in one of several ways. One of them was to choose to self-insure their firm. Here, one essentially states that they have the financial capability to cover all and any claims arising from their firm’s negligence, and which they’re eligible to pay. Financial responsibility could also be demonstrated by providing a surety bond. This is a promise made by the issuer to pay on behalf of another party in case the latter fails to do so. The carrier could also opt to procure a conventional insurance cover, which is where the MCS-90 endorsement came into play.
In practice, the MCS-90 is just but a guarantee that there will be some funds to cater for a loss in the event that the insured had the legal liability. As such, it falls close to acting as an umbrella policy of proof that the transporter has enough resources to cover all foreseeable damages of the vehicles they use. All vehicles owned, operated and/or maintained by the insured are covered, irrespective of whether each vehicle is specifically mentioned in the policy.
This guarantee mainly caters for the public by assuring them that there’ll be no loss if the carrier doesn’t meet the required minimums. But if any claim is compensated under the MCS-90, the insurance provider could recoup their losses by subrogating claims paid against the transporter. For this reason, it’s crucial that all equipment is listed on the scheduled unit policy.
The MCS-90 Isn’t Equal to Insurance
As mentioned, all for-hire transporters are required to have an MCS-90, just like is the case with insurance. But contrary to popular belief, the MCS-90 isn’t insurance per se. Instead, it’s more of a guarantee that the carrier has demonstrated proof of financial responsibility; that they have some source of funds to cover a loss in which the insured is held liable. This requirement makes sense because most carriers use exceptionally large vehicles which tend to cause a higher degree of damage when they’re involved in an accident. Because the MCS-90 is a federal requirement and not insurance in itself, the insurer isn’t obligated to determine the carrier’s financial responsibility. This is usually the carrier’s own obligation.
Application
This is one of the most misunderstood elements of the act, especially when as far as the ‘when’ and ‘to whom’ the requirements apply. A motor carrier is legally defined as “A firm that employs big semi-trucks and bus drivers.” However, the MCS-90 could also be required for a vehicle of any size, depending on the type of cargo it’s ferrying. This especially applies when it comes to the transportation of hazardous material; small trucks carrying such goods have to abide by the requirements.
The MCS-90 also applies to both intrastate and interstate operations. It’s commonly assumed that because it’s part of federal law, the Act only applies to carriers operating across state lines. But the MCS-90 clearly states that the requirements don’t apply according to the size or classification of vehicles, or the geographical extent of their operations. In a nutshell, the Act applies more in respect to how risky the vehicle is based on various factors, mainly the size of cargo and how hazardous it is. High-risk freight will certainly necessitate bigger contingencies due to the potentially larger extent of damage.
The MCS-90 is basically a complex, confusing endorsement. However, it is one of significant importance to all freight carriers. While it doesn’t equate to insurance, it could go a long way in helping carriers and insurers protect themselves.
Truck driving is one of the most secure employment fields in America, and these opportunities are growing every day. The benefits of becoming an owner operator go deeper than just financial stability. These professionals also have the flexibility to make their own schedules and the opportunity to see America. However, the owners of big rigs are also required to have far more coverage than the drivers of small cars. Fortunately, it’s rather easy to acquire owner operator insurance from a qualified carrier once you understand the laws..
What is Owner Operator Insurance?
Owner operator insurance actually falls into two categories and drivers should only be concerned with one type. Premium liability insurance actually protects the public from any damage caused by the tractor-trailer while it’s on the road. This is the insurance that’s carried by the driver at all times so long as he or she owns and operates a rig. There’s also secondary liability insurance which is carried by the company with whom the driver is contracted. Even though owner-operators are independent contractors, the companies contracting them will typically have secondary insurance for each truck.
Are there Different Insurance Requirements for Each State?
The trucking industry is closely regulated by the Federal Motor Carrier Safety Administration (FMCSA). This governing body requires the same coverage of all drivers regardless of their states of origin. It’s important to remember that these drivers regularly cross state lines so it’s best to regulate them on a state level. However, there are governing bodies for companies that only haul within one state. Yet in still, both surplus lines and admitted carriers are regulated by the FMCSA.
How much Coverage do Drivers Need?
All owner-operators need at least $750,000 in coverage to acquire their tags. This is liability insurance to pay for property damage and hospital bills if need be. Most companies will require at least $1 million in coverage before they’ll let the owner-operator haul for them. There are some companies that will let drivers haul with the minimum, but they’re typically lower paying operations.
Do Drivers Have to Insure the Cargo?
The company that ships the cargo is responsible for its insurance. However, the company may pass the fee of the insurance onto the driver. It’s up to the driver to read the agreement before signing because paying for cargo insurance can be expensive.
Do Drivers Need More Insurance to Haul Cars?
The FMCSA requires at least $1 million in coverage for drivers who are hauling cars. This is some of the most expensive cargo on the roads and the additional insurance protects the drivers and the owners of those vehicles.
What is Bobtail Liability Insurance?
This is insurance for owner operators that are insured by the company for whom they’re driving. Some operators have their trucks insured by one company because this company is the sole client. However, the company’s insurance only covers the truck while it’s hauling a load. Bobtail insurance provides coverage for the truck when there’s no load on board. Drivers who have insurance in their own names (or the names of their own companies) aren’t required to carry bobtail insurance. This is also known as running under your own authority, and these drivers also need auto liability and cargo insurance. There may also be other requirements from the party paying for the shipment.
Understanding the owner operator insurance Laws are just as important as knowing how to operate the vehicle. Drivers are in the field to earn a living so they don’t want to pay for too much coverage. However, an even worse mistake would be taking to the roads with too little coverage.
Bobtail insurance is commercial liability insurance for motor vehicles and is purchased by owner operators or independent trucking contractors. This insurance is designed to provide liability coverage for the owner operator whenever the driver is bobtailing or deadheading. This liability coverage is applicable regardless of the dispatch status of the tractor.
When under dispatch, the owner operator will be covered by the motor carrier’s auto liability coverage. It is common for the motor carrier or trucking company to require that any leased owner operator obtain bobtail coverage. Bobtail insurance will not provide coverage if you are hauling any trailer even if the trailer is empty.
Bobtail insurance coverage applies to a semi not in the act of pulling a trailer and covers only the tractor. This coverage is generally broader coverage than Non-Trucking Liability as it covers the tractor when the truck is driven irrespective of whether the equipment is under dispatch. A business auto policy on the truckers form with a non-trucking using endorsement is the typical method for providing this type of coverage.
There is a similar coverage also available called non-trucking liability. This coverage would protect the tractor when it is not under dispatch and irrespective of whether the tractor is attached to a trailer. This type of coverage applies only when the truck is not under dispatch and provides coverage for areas such as personal use.
Owner operators who are permanently leased to a motor carrier providing auto liability insurance may be required to obtain Bobtail or Non-Trucking Liability (NTL) coverage. Bobtailinsurance.com can connect you with insurance professionals that can help you determine that right coverage for your business.
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