Trucking insurance policies come in various and may include comprehensive, collision, and liability. Each type of policy comes with its benefits and risks, so it’s important to research and shop around to find the policy that best suits your needs and budget. The type of trucking insurance you need will depend on the type of truck you drive and the nature of your business.
If you drive a large truck that makes hauls between cities, you may need a combination of liability and cargo insurance. Even though cargo insurance is not required by law, it’s one of the most important types of insurance. For issues, check with The Owens Agency LLC in Waldron, AR.
What Various Trucking Coverage Entails
Liability insurance protects the trucking company if one of its trucks causes property damage or bodily injury to another person. Property/collision insurance covers the truck’s repair cost if it is damaged in a collision or by other causes such as a falling load. Most trucking companies require their drivers to maintain a minimum level of liability insurance, often at least $100,000 per person. Liability insurance covers the costs you might be responsible for in the event of an accident, such as medical bills for passengers or other drivers or repair costs for another vehicle.
Cargo insurance covers the cost of replacing your cargo if it is damaged or goes missing. Most standard policy limits for liability coverage are between $100,000 and $300,000. You may be able to purchase higher liability limits, but most truckers go with the standard amounts, as they are more affordable. In most cases, the amount of the cargo insurance is determined by taking a percentage of the total value of the cargo. For example, if the cargo is valued at $100,000 and you pick up another load with a value of $50,000, your new cargo limit would be $150,000.
If your truck is damaged in an accident, your physical damage (PD) insurance will pay to repair it. In the U.S., there are different types of commercial truck insurance plans that you can choose from. These plans differ in coverage, price, and more. For consultations in Waldron, AR, call The Owens Agency LLC.
