Michigan Trucker’s Guide to Insurance

Before you start searching for quotes for commercial truck insurance, it’s good to have an understanding of what you are purchasing and how truck insurance works. You don’t want to just fill out an online quote and pick the cheapest insurance quote for your truck. You need the best coverage for your particular needs.. We are here to help you. We specialize in truck insurance and have written this guide to help you better understand what coverage you need and how to get the best price on your truck insurance.

What is the difference between Commercial Truck Insurance and Auto Insurance?

If you are driving a commercial truck you need commercial truck insurance, but what’s the difference? Your truck and your cargo are both big investments. Unlike regular auto insurance or commercial auto insurance, your risks are different. You are hauling large amounts of merchandise and often across state-lines. Naturally, the risks for loss are higher than just driving a vehicle around for work. Because commercial trucks haul large amounts of merchandise they are regulated differently than commercial autos.The FMCSA (Federal Motor Carrier Safety Administration) requires truck drivers to have a certain amount of insurance coverage. What type of coverage you need will depend on the value and what type merchandise you haul.

Types of Coverage – What options are there and what do you need?

• Primary Liability Coverage This doesn’t cover your truck. It pays for damages and injuries to other people and their property if you get in an accident.
• Motor Truck (“Truckers”) General liability coverage – When you are a truck driver you don’t just drive. You park in parking lots, rest stops, stop to load and unload your truck. Truckers general liability covers you, the truck driver, for damages that occur outside of driving your truck.
• Physical Damage Coverage. Physical damage coverage protects your truck. This type of coverage will pay to fix or replace your truck. Collision coverage pays for damages if your truck is involved in an accident. Comprehensive covers your truck for additional perils such as fire or theft.
• Motor Truck Cargo Coverage Motor truck cargo covers the freight you are hauling. It will pay for lost freight or damaged goods.
• Non-Trucking Liability Coverage. Non-trucking liability coverage covers you when you are using your truck for non-business reasons. For example, when you are driving your truck for personal reasons or not pulling a loaded trailer.
• Bobtail Coverage. This provides coverage if you get in an accident while “bobtailing” (when you are driving a cargo-carrying truck without a trailer attached).
• Uninsured/Underinsurance Motorists Coverage. Uninsured/Underinsurance Motorist coverage protects you if you are involved in an accident with an at-fault driver who does not have enough liability coverage to cover the damages.

Other insurance you may need if you have a trucking business

If you have a trucking business, you may need additional coverage to protect your drivers and your business such as workers compensation insurance, business liability, or umbrella coverage.

What information do you need to get a quote?

If you want the best truck insurance quote, you should speak with an agent. There are so many factors that influence the price and coverage for truck insurance. It’s more complicated than an auto insurance policy. You will need your driver’s licence number, driving history, and VIN number of your truck/s. Your agent will want to know more about your operation to give you the best quote, such as what kind of truck you drive, where you drive and what you are hauling.

How to save money on truck insurance.

Keep a good driving record. Your driving record is one of the main factors in the price of your insurance. Make sure you and those who drive for you have a clean driving record.

Increase your deductible. Increasing your deductible will allow you to lower your monthly premiums. Keep in mind, a higher deductible also means more will come out of your pocket later if you need to file a claim.

Pay your insurance by the year. Many truck insurance companies offer discounts to truckers who pay their insurance upfront. Considering that truck insurance costs more than traditional auto insurance, the savings can be well worth the upfront costs.

Ask your agent for discounts. Your agent is your best resource.

• ELD discount – Some carriers give discounts on your insurance just by allowing your carrier to track your ELD.
• CDL discount – If you or your drivers have a CDL license you may qualify for a discount.
• Business owner/package discounts – Packaging business insurance (like general liability or a business owners policy) together with your truck insurance can also save you money
• Paying by EFT – Having your premiums set up to be withdrawn electronically is another discount option.
• Combining your auto and truck insurance – You may qualify for discounts on your auto insurance if you carry your truck insurance with the same carrier.

Contact Precision Insurance for more information on how you can save money on your truck insurance. We specialize in truck insurance and can get you the best price and coverage for your trucking operation.