The trucking industry is a vital pillar for the revival of the economy, as communities depend on trucks for the delivery of everyday goods. Without professional truck drivers, none of the facets of the global or local economy could function. Presently, there’s a driver shortage because the experienced workforce is retiring. That explains why there are so many bobtail trucks on the road. A truck driver that operates under someone else’s authority has to get insurance, whether or not they’re under dispatch for a job. In an attempt to help those employed in the trucking industry better understand insurance, we’ve compiled a list of the most commonly asked questions.
Do I need bobtail insurance?
Bobtail insurance is designed for motor carriers that transport goods for customers using their own trucks and equipment, and, at times, drive without a trailer attached. Owner-operators are required by the Federal Motor Carrier Safety Administration to have liability coverage. Besides bobtail insurance, you can purchase other types of insurance, such as cargo insurance, roadside breakdown coverage, and personal property insurance, just to name a few. It’s better risk management. According to Insuranks, there are certain considerations for those contemplating bobtail insurance. Look at the terms of every provider and compare them thoroughly.
Is there any difference between non-trucking liability and bobtail insurance?
The term “bobtail insurance” is used interchangeably with “non-trucking liability insurance”. the question now is: Is there any difference between the two? Actually, there is. Non-trucking liability insurance protects the owner or the operator when they go to the grocery store or attend a kid’s special events – in other words when the vehicle isn’t used for business purposes. By contrast, bobtail insurance offers protection against any liability if you’re hauling any trailer or load. It doesn’t matter if the truck was used for business or personal reasons. Regardless of the scenario, the policy acts as an umbrella.
What’s the minimum coverage that I need to get?
Primary liability protection is a type of policy that all truckers must carry, as demanded by the Federal Motor Carrier Safety Administration. The amount can range somewhere between $750,000 and $1,000,000. If you were to get into an accident, the primary liability insurance would pay for the related expenses. Attention needs to be paid to the fact that the minimum required limit depends a lot on the type of freight that is transported. Examples of freight include non-hazardous freight, oil moved by for-hire and private carriers, and other hazardous material.
How much does bobtail insurance cost?
The overall cost of bobtail insurance is decided by several factors, including driving history, the frequency of driving without a trailer, limits requested, and the number of employees, just to name a few. It’s not recommended to rush into buying a policy without checking out different quotes. There are countless insurance companies and agents on the market these days, which means that there’s no shortage of choices. Take the time to understand the terms and conditions. It’s worth looking into the legality of the fine print because surprises might arise when claiming liability.