Jeffrey Wade
Commercial trucks are required to carry insurance. The Federal Motor Carrier Safety Administration (FMCSA) mandates insurance and it is a necessity for operating a commercial truck. The FMCSA and the Department of Transportation (DOT) require proof of public liability insurance when submitting an application for an Operating Authority/MC Number. The FMCSA requires a minimum liability limit of $750,000 CSL or $1,000,000 CSL for truckers needing a federal filing. This insurance serves to protect the interests of both the trucking company and its customers.
| Characteristics | Values |
|---|---|
| Is commercial truck insurance mandatory? | Yes |
| Who mandates it? | The Federal Motor Carrier Safety Administration (FMCSA) |
| What happens if a truck is not insured? | It cannot operate |
| What is the purpose of commercial truck insurance? | To protect the interests of the trucking company and its customers |
| What does commercial truck insurance cover? | Bodily injury, property damage, cargo damage, accidents during personal use, theft, natural disasters, etc. |
| What factors influence the cost of commercial truck insurance? | Type of trucking, operating radius, vehicle weight, USDOT inspection history, coverage requirements, driving record, etc. |
| What are the different types of coverages? | Bobtail insurance, limited depreciation coverage, mechanical breakdown insurance, motor truck cargo insurance, motor truck general liability insurance, non-trucking liability insurance, on-hook coverage, optional downtime coverage, passenger accident insurance, physical damage coverage, trailer interchange agreement insurance, etc. |
What You'll Learn
Bobtail Insurance
Bobtailing is a term used to describe when a driver operates a semi-truck or 18-wheeler without a trailer attached. This could be when a driver is picking up a load or on their way back from dropping one off. Bobtail insurance, therefore, is a type of liability coverage that protects you when driving your truck without its hauling equipment.
- On your way to pick up a new load
- In between dropping off a load and picking up the next
- On your way home after your last drop-off
The cost of bobtail insurance depends on several factors, including your personal driving history, the coverage limit, and how often you bobtail. Most drivers pay around $400 annually for this type of insurance.
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Motor Truck Cargo Insurance
The cost of motor truck cargo insurance varies depending on the trucking company, the number of trucks, and the type of cargo. It typically ranges from $5,000 to $20,000, with extra insurance also available. When choosing a plan, a limit of coverage and a deductible must be selected. The limit of coverage is the maximum amount the insurance company will pay for damaged or destroyed cargo, while the deductible is the amount the policyholder must pay out of pocket before the insurance company pays.
While motor truck cargo insurance is not legally required, it is often essential for financial protection. Many shippers or clients require truckers to carry this type of insurance to protect their loads. It is important to note that motor truck cargo insurance does not cover certain types of cargo, such as hazardous materials or high-value items like jewellery.
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Physical Damage Insurance
Commercial trucks are mandated to have insurance by the Federal Motor Carrier Safety Administration (FMCSA). Physical Damage Insurance is a type of insurance coverage that protects your vehicle. This includes Collision Insurance, Comprehensive Insurance, and Fire and Theft with Combined Additional Coverage (CAC) Insurance.
Collision Insurance provides protection for your vehicle if it is damaged in an accident. It pays to repair or replace your vehicle if it collides with another object. Comprehensive Insurance protects your vehicle if it is damaged by something other than a collision with a vehicle or object, or if your vehicle is stolen. Fire and Theft with CAC provides similar protection to Comprehensive Insurance but is limited to specific non-collision incidents. Fire and Theft with CAC does not cover windshield claims.
When choosing Physical Damage Insurance, you must select a deductible, which is the amount you agree to pay out of pocket when you have a claim. Choosing a higher deductible lowers the price of your insurance. It is important to select a deductible that you can afford to pay at any time.
In addition to the deductible, you are required to submit a stated amount, which is your estimate of the current value of your vehicle. The stated amount should take into account the age and condition of your vehicle, as well as any permanently attached equipment.
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Public Liability Insurance
Commercial trucks are required to have insurance before they can operate. The Federal Motor Carrier Safety Administration (FMCSA) mandates insurance, and the FMCSA and the Department of Transportation (DOT) have strict requirements for proof of public liability insurance when submitting an Operating Authority/MC Number application.
The FMCSA requires a minimum amount of insurance in the event of an accident. The amount of coverage depends on the type and weight of freight being transported. For example, if a truck carries non-hazardous materials and weighs 10,001 pounds or more, a $750,000 liability policy limit is required. For hazardous materials trucks, liability policies must be significantly higher due to the risk and expense of cleaning up hazardous spills. A $5 million policy must be carried at all times for trucks that deliver radioactive materials, explosives, gases, or anything poisonous by inhalation.
In addition to public liability insurance, there are other types of insurance that trucking companies may want to consider, such as physical damage coverage, motor truck cargo insurance, and non-trucking liability insurance. These types of insurance can help protect trucking businesses from financial losses and ensure that they are able to continue operating in the event of an accident.
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Non-trucking liability insurance
Commercial trucks are required to have insurance. The Federal Motor Carrier Safety Administration (FMCSA) has strict rules about insurance coverage, and will not issue operating authority without proof of liability and cargo insurance.
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Frequently asked questions
Yes, commercial trucks are required to have insurance. The Federal Motor Carrier Safety Administration (FMCSA) mandates insurance and it is a necessity to operate without.
The FMCSA requires commercial trucks to have public liability insurance, which includes coverage for property damage and personal injuries. The minimum coverage depends on the weight of the truck and the type of cargo. For example, trucks carrying hazardous materials are subject to stricter rules and higher insurance coverage.
Without proper insurance, commercial trucks are not permitted to operate. The FMCSA will not issue operating authority without proof of insurance, and companies will not entrust their cargo to trucks without adequate coverage.
Some additional insurance coverages for commercial trucks include cargo insurance, bobtail insurance, physical damage insurance, and non-trucking liability insurance. These coverages provide protection for the goods hauled, the truck when not in use, accidents, and personal use, respectively.
