If you're an independent contractor and own a semi-trailer truck, you probably are already required…
What Does Bobtail Insurance Cover 
What Does Bobtail Insurance Cover
Motor vehicles are prone to many risks, such as theft, accidents or even fire. Even though the probability of this risks occurring may be low, when they do happen, it can lead to major loses especially for the truck owner. Truck drivers are also exposed to many risks. An accident can lead to injury resulting in situations where one has to pay hefty medical bills. Trucks are an investment and a way of owners safeguarding their vehicles, they usually take up insurance covers. One of the insurances covers available for truck drivers is the bobtail insurance cover. What does bobtail insurance cover? This is an important question that will be discussed in length in this article.
What is bobtail insurance?
Bobtail insurance is a liability cover that is specifically meant for truck drivers. Trucks are normally used for freight services. During such travels, the truck insurance normally covers the driver, the truck and also goods on transit. However, once the goods are delivered, the companies liability cover does not cushion the driver from any risks that may occur. Bobtail insurance helps bridge this liability gap by ensuring the driver is covered during such times.
What does bobtail insurance cover?
The bobtail cover applies when a truck is not hauling any load. Such situations normally arise when goods have been delivered and the driver has to travel to get the next haul or when the driver is running personal errands. It is important to note that bobtail insurance only covers the truck when no trailer is attached.
Who takes up the bobtail insurance cover?
Bobtail insurance policy is meant to cover the driver. Normally, if one is employed as a driver in a company, the employer takes up the cover on behalf of the driver. Some truck drivers, however, operate as independent contractors working on lease agreements with truck owners. In such instances, truck owners normally require drivers to take up the bobtail insurance cover before the lease agreement can take effect.
Taking up a bobtail insurance cover
As per the law, it is mandatory for a truck to have an insurance cover. For truck drivers operating lease agreements, having bobtail insurance is a critical part of the contract. Normally bobtail insurance is charged monthly but there is also an annual policy plan. How much you pay for your bobtail insurance will normally be based on the following factors:
• Choice of your insurance cover provider
Companies normally charge different rates based on the company’s policy model. The base rate and premium charges may fluctuate from time to time.
• The type of truck
Trucks come in a variety of models and some tend to be cheaper than others. During valuation, the value of the truck is one of the determinants of how much one will pay as premiums.
• The type of plan
Annual plans tend to be cheaper as compared to monthly plans especially if the covers are meant to last a long period of time.
Important facts about bobtail insurance
There is a maximum value that one can insure of about $1 million but due to the changes in law, one can also get higher covers. Bobtail insurance is not a substitute for primary liability when it comes to truck insurance. Lease agreements will normally require drivers as a way of safeguarding trucks as they operate.
Terms and conditions
After understanding what does bobtail insurance cover, the next step is analyzing the specifics of such an agreement with an insurance company. When taking up such a cover the first step is normally valuation. This is the process of determining the actual value of the truck, key features such as brake performance and security features. Upon valuation the premiums the truck driver is supposed to pay will now be calculated.
The bobtail insurance cover comes to effect once the premiums are paid and the insurer verifies the truck credentials such as ownership and registration. It is, however, important to note that the insurance policy does not cover risks associated with negligence. Such risks include damages caused by reckless acts such as over speeding, drunk driving or even careless overtaking.
As a truck driver, understanding what does bobtail insurance cover is very important. As a bobtail policyholder, your obligations are to pay your premiums on time and inform your insurer of any issues such as breakdown or accidents that may occur while you are on the road. Maintain your truck should also be your number one priority as it minimizes accidents.
Understanding what bobtail insurance covers sheds a lot of light on the relevance of such a policy. One should always consult a professional before taking up such a cover. Such individuals will normally guide you on the contract terms of such a policy and even point out the top insurance companies to go for when taking up such a cover.