Getting What You Pay for With Trucking Insurance

Getting What You Pay for With Trucking Insurance

Category : Truck Insurance

Insurance, regardless of what industry or coverage type, is often priced according to a number of influencing factors. Commercial truck insurance is generally a requirement of the Federal Motor Carrier Safety Administration for certain trucking operations, with a minimum in liability coverage set at $750,000. The cost of this coverage can vary across company and driver.

What It Includes

Commercial truck insurance is used for businesses that rely on trucks and truck drivers, though it can be used for specific vehicles acting for a business purpose. The driver listed on the policy will impact the overall costs, as the driving record is an important consideration. When looking for trucking insurance quotes, the following terms commonly arise:

  • Coverage- which defines the incidents, damage and expenses that will be covered
  • Deductible- the amount a company must pay on a claim before the policy takes effect
  • Monthly premium- the cost the policyholder must pay to keep a policy active
  • Policy limit- the maximum payout the insurer will pay on a policy claim

These are all the factors an insurance company will define for the policyholder, and in return for payment on the policy, the insurer will provide compensation for damages, medical expenses, repair or replacement in the event of a covered incident.

Maintaining the minimum liability limits of the FMCSA may not fully address the costs of an accident or incident. Paying for what is needed is the best strategy when choosing how to narrow down between insurance quotes.