Truck insurance is a necessity in the transport and motoring sector. According to the Department of Transport (DOT), most truck operations base the purchase of their insurance coverage on the cost factor. This cannot be entirely blamed on the trucking company since the insurance agents who sell these policies structure them following the same criteria. This is a dangerous approach especially in light of the amount of investment that goes into a trucking operation. Just like is the case when buying other products and services, it is important to consider the quality of the truck insurance package.
Things To Consider When Buying Truck Insurance
? Emergency expenses.
? Combined deductibles.
? Rental reimbursement.
? The coverage limit for towing.
? Coverage for personal effects.
? Accurate and quick filing procedures.
? Accurate and expedited issuance of insurance certificates.
? Detailed and accurate information on insurance accounting
Insurance brokers as well as the insurance policies that they sell usually vary a lot. It is important to carry out a thorough research before settling on any one insurance policy. This way, you will be assured of getting the best insurance coverage for your trucks.
Options For Truck Insurance
Truck operators have several options as concerns insurance payment plans and coverage. The coverage and payment plans are divided into various segments depending on the following fleet sizes.
Group I which comprises of 20-50 units.
Group II which comprises of 51-100 units.
Group III comprising of 101-500 units.
Group IV comprising of more than 500 units.
All these alternatives involve different payment plans which cater for varying trucking insurance needs. Trucking companies that fall into group I and II have fleet policies based on mileage, gross revenue and vehicle schedules. Each of these options has their own advantages and disadvantages. Policies based on gross revenues have premium rates averaging 3 percent which are applied to the generated monthly revenues. In this case, the premium follows the income, a situation which allows for optimum cash flow. These policies are ideal for a growing fleet that may wish to add tracks without necessary having to pay higher premiums for the new units.
Policies based on mileage are ideal for trucking operations that have put systems in place for tracking their accumulated mileage. There should be no wide fluctuations in the driven mileage since this will result in higher premiums which will ultimately mean that you will have to pay more for your policy. These policies make use of an estimation mileage which should leave an allowance for some form of growth i.e. it should not be too rigid. Just like the gross revenue policies, these policies also allow for the addition of additional trucks without necessary resulting in premium payment hikes.
Vehicle schedule policies are ideal for trucking operations that have smaller fleets of say less than 75 units. Such truck fleets have minimal amount of truck changes. Their monthly vehicle reports are based on a monthly unit premium which gets rid of gross revenue or mileage reporting. Any premium increase as a result of sudden increase in revenues and mileage is therefore eliminated. This policy option unlike the other two options doesn?t allow for the subtle addition of tracking units without increasing the cost of premium.
Trucking companies that fall into the III and IV groups are generally interested in various forms of risk sharing which are based on the results of their claims. These trucking companies reduce their truck insurance costs by taking part in the process of claims. This they do through the acceptance of Self Insurance Retention (SIR) or the placement of liability deductibles. SIR brings the trucking company directly the process of making claims.
Deciphering The Numerous Truck Insurance
Almost all trucking companies or truckers in the US concur that truck insurance is the largest fixed business expense that they face. Trucking insurance is one business aspect that companies are obliged to monitor closely so that they can ensure all their insurance needs are taken care of. Insurance costs are impacted by numerous factors such as:
? Truck age.
? Commodities hauled.
? Driver?s age.
? Vehicle location
? Radius.
? Loss history.
? Years of practicing business.
Types Of Truck Insurance
? Physical damage- this protects the trailer as well as the truck. The premium for this type of truck insurance is wholly dependent on a percentage of the equipment?s value. According to US law, this type of insurance coverage is not mandatory.
? Primary auto liability- this type of truck insurance is mandatory under US federal regulations. Rigs are supposed to have liability insurance even when they are leased. Liability insurance takes care of third party injuries in the event of a road mishap.
? Non-trucking liability- caters for accidents caused by trucks or drivers that are not under dispatch. This type of coverage is usually referred to as bobtail liability or deadhead coverage.
? Non-owned trailer liability- protects a trailer that is being pulled.
? Non-owned trailer physical damage- provides insurance coverage for a trailer that is being pulled. The standard amount is $20,000.
? Trailer-interchange liability- protects trailers in transit especially where an interchange agreement is in force.
? Cargo insurance- this coverage takes care of freight loss or damage especially during transit. This insurance coverage has several exclusions such as maximum limitations on theft especially on target commodities like electronics and liquor as well as unattended vehicles.
? Terminal coverage- this coverage protects loss of freight especially freight stored in specific terminals. It comes with time limitations such as 72 hours per load. Should the goods due for tracking take more than the stipulated terminal time in the warehouse, it would be most advisable to take warehouse coverage.
? Warehouse coverage- this protects goods that are up for transportation and which are stored in a terminal location especially in the event of a loss. This coverage caters for losses that would arise from sprinkler damage, fire and theft and usually has its premiums pegged on the amount and value of goods stored in a particular terminal location. Hopefully this helps you find the best truck insurance for whatever you do.
Source: http://www.driversinsurance.net/truck-insurance
the descendants the descendants joe paterno lung cancer joe paterno lung cancer john tucker must die uk basketball iowa state
Keeping your truck safe is one of the first things that a truck driver or owner has to make sure to do; this includes but is not limited to providing a safeguard if the truck is hijacked or stolen, if there is an accident or the truck simply fail to function. Commercial truck insurance policies often deal with all these situations and much more, to the benefit and preference of the truck owners and runners.
ReplyDeletemotor traders insurance