How Does Commercial Truck Insurance Differ from Auto Insurance?

Driving on any road is a risk for everyone, whether you are driving your own personal car, a passenger vehicle that is part of a company fleet, or a semi-truck. Because of this, each is required to have insurance. 

Yet, commercial truck insurance is different. Why? Because truck drivers face different risks and challenges than those who drive ordinary, everyday personal vehicles. Let’s take a closer look. 

Understanding Commercial Truck Insurance

Commercial truck insurance usually involves more than one type of insurance policy — and they are custom-created to fit the needs of the driver. For instance, those hauling hazardous materials may require additional coverage than those hauling oranges. 

Commercial truck insurance covers both people and property, just as personal auto insurance does. They also have liability coverage, too – though a bit different. 

The Federal Motor Carrier Safety Administration (FMCSA) requires owners to have a minimum amount of coverage. To drive, they must be able to prove that they have coverage for:  

  • Bodily injury
  • Damage from accidents
  • Physical damage to property
  • Damage to cargo

Keep in mind that to have insurance that covers the truck itself, additional coverage must be purchased. 

How Commercial Truck Insurance Differs from Personal Auto Insurance 

Simply put, commercial truck insurance provides more coverage and higher values. After all, getting into an accident will often involve more than just the vehicle itself — it has to cover the cargo that is being hauled as well as any cleanup costs should a spill happen. History has taught us that the average truck accident costs between $100,000 and $200,000! This doesn’t even include the cost of high-priced cargo that can be lost or damaged. 

Insuring personal vehicles does not involve any extra baggage. They are also valued much lower. And, let’s be real — no one ever considers throwing in the cost of cleanup in your personal auto insurance policy. 

What To Look For In Commercial Truck Insurance

You must know what to look for when purchasing commercial truck insurance as you must make sure you are covered and protected based on what your needs are. This is crucial since what you are hauling plays a role in your coverage, as well. 

Before you invest in commercial truck insurance, here are a few things you should be looking for: 

Review your risk. Take a hard look at what you are hauling and the risks you take. Even consider the weather-related risks along your common routes, risks crossing state and country borders, and cleanup costs for those carrying hazardous materials. 

Consider your coverage. Once you know your risks, you can have a better idea of coverage, including the policy itself and any additional coverages you think you may need. 

An affordable rate. You need the coverage so you want to make sure that it is affordable. Sometimes working with a broker can help you find the right coverage from the right company — at the right rate. 

Review your needs often. In the trucking business, things can change quickly as it pertains to growth, loads, weather, and so forth. Make sure that you regularly review your needs to ensure that you have all the coverage you need from your commercial truck insurance. 

Need Commercial Truck Insurance? 

At 10-4 Financing, we offer commercial truck insurance and leasing options. After all, we are the semi-truck financing experts. Whether you have questions, are looking for a quote, or just don’t know where to start — contact us today.