Every day, we have the privilege of talking to many truck drivers and we have found out that most are not well informed about the insurances and the different coverages that exist. Many think that having liability insurance covers everything and that is not true. For this reason, we thought it was important to write about what types of insurance you should have to avoid unpleasant surprises in case of a claim.
There are many factors to determine what type of insurance is the most appropriate for each type of business. However, these are the 4 fundamental coverages that truckers should have:
- Liability insurance: This is the mandatory insurance and the one that covers damages that you cause to third parties or to a property. Driving without having this coverage is a crime and could result in heavy penalties.
- Bobtail insurance: Also known as non-trucking liability. This insurance covers your liability for damages to third parties when you are not using the truck to transport cargo. For example, if you leave your load in the yard and go with the truck for maintenance, to the mechanic's workshop, to wash it, go home with the truck, etc.
- Motor Cargo insurance: This insurance covers the goods you are carrying. This coverage deserves a separate article because of its breadth. For this reason, we will deal with the coverage and exclusions of cargo insurance in the following article.
- Physical Damage insurance: Generally, it combines a few coverages in order to protect your truck as collision insurance, which covers the repair costs or the replacement of your vehicle when it is damaged in an accident. It is very important to have it because in the case of an accident in which you are not guilty, in many occasions it is easier for you to report it to your insurance and getting your truck repaired while letting the insurance being responsible for recovering the money paid for the repair of the truck, including your deductible. It is a matter of evaluating the situation and see if you should report it to your insurance or that you take care of dealing with the insurance of who caused the damage.
We want to conclude by saying that many truckers try to economize on their insurance, which is not bad; however, we recommend you to check whether that money saving does not mean a dangerous reduction of your coverage, in case you need to require your insurance. A single insurance claim could represent losing everything you've fought your whole life.