What are common misconceptions about commercial truck insurance requirements?
Updated: Jan 30
The world of commercial truck insurance can be daunting at times, especially when there is a lot of misinformation out there. It's important to understand how insurance coverage and policies work to avoid coverage lapses, missed payments, uninsured drivers, and more. CarrierHQ has included a few key myths in the truck insurance world in this article to help you feel better prepared while on the road!
Myth #1: All employees are always covered when they drive my business’s insured vehicle.
To ensure that all of your employees are covered while driving your company's insured vehicle, your insurance policy must include "permissive use." This means that drivers are covered as long as they have been given permission to operate the vehicle. However, not all insurance providers offer this option, and some may only provide coverage to drivers who are specifically named on the policy.
It is a common misconception that having commercial truck insurance automatically covers all employees who drive for your business. However, this is not always the case. Some insurers only extend coverage to drivers who are specifically listed on the policy.
To ensure that all of your employees are covered while driving your company's insured vehicle, it is important to verify with your insurance provider if they allow "permissive use." This means that all of your drivers are covered as long as they have your permission to operate the vehicle.
Myth #2: Seasonal businesses should cancel their insurance policy during the off-season.
Canceling your insurance policy during the off-season can have significant drawbacks. For example, your trucks may not be covered in the event of vandalism, fire, theft, and so on. Therefore, it is not recommended to cancel your insurance policy when your vehicles aren’t in use. An alternative is to switch to a comprehensive-only policy for the duration of your business’s downtime. This will provide coverage for situations like fire and theft, but won't include unnecessary liability coverage that would only be needed if your vehicles were being driven.
Myth #3: Insurance premiums are set in stone and it is impossible to lower them.
Insurance premiums are determined by various factors, but there are ways to potentially lower them. One option is to adjust your deductible. A lower deductible will result in lower upfront costs in the event of an accident, but your insurance premium will be higher. If your operation has a low accident history, increasing your deductible to a higher amount could be worth considering. Another option is to prioritize safety within your company and for your drivers. Implementing safety programs and having a clean safety record can help to reduce your insurance premium. Additionally, incorporating safety features like dash cameras can help prevent fraudulent claims. Additionally, paying for your entire policy upfront can result in a discount from most insurance providers, and it is worth requesting a policy review from your insurance agent to ensure that you have the right coverage and that you are not paying extra coverage that you don't need or have coverage gaps that need to be closed.
To ensure that all of your employees are covered while driving your company's insured vehicle, you should choose a policy that includes a "Permissive Use" endorsement. This ensures that all of your drivers are covered under the commercial truck insurance plan as long as they have your permission to drive and hold the proper credentials, such as a CDL if needed.
Myth #4: I need a separate cargo insurance policy.
A cargo endorsement can be a less expensive alternative to carrying a separate policy for cargo insurance. If you are involved in an accident that damages both your truck and cargo, you'll only need to file your claim to one company rather than two separate insurance companies. This can save you money and make the claims process less complicated.
Myth #5: Price is the most crucial factor when choosing commercial trucking insurance.
It is a common misconception that the cheapest commercial trucking insurance policy is the best option. However, it is important to note that not all policies are created equal and price should not be the only factor in making a decision.
It is crucial to choose a policy that meets all of your insurance requirements, without providing the coverage you don't need. A good approach when searching for commercial trucking insurance is to work with an agent who prioritizes your needs and can provide comprehensive coverage at competitive prices. This will help ensure that you are getting the best policy for your business.
Here at CarrierHQ, we can help you get the right insurance at the right prices – And we can get you set up with coverage in as little as 24-48hrs hours. Contact us today, or head over to our application for a free quote!