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Shopping for Trucking Insurance: Why the Best Price Isn’t Always the Best Decision

Do you worry about liability claims in the event of an accident? Are you sure the cargo you carry is insured? Do you want the best available price on your insurance? 

If the answer to any of these questions is yes, then we’re here to help. Shopping for trucking insurance can be daunting. The best price isn’t always the best decision. 

Read on to learn what to look for in commercial truck insurance and how to find the best insurance to meet your unique business needs! 

What Is Commercial Truck Insurance? 

Commercial truck insurance is a group of auto insurance policies that protect commercial trucking businesses. These policies are highly personalized to each company. 

The basic protection covers trucks in the event of an accident. Expanded insurance protects the cargo, and it can include both collision and comprehensive insurance, even in the case of driver error. 

Pros of Commercial Truck Insurance

  • Personalization: comprehensive protection with a personalized quote.
  • Compliance: ensures federal and state coverage compliance. 
  • Property Liability Protection: reimbursement for vehicle repairs of others, even in the case of driver liability. 
  • Bodily Liability Protection: reimbursement for bodiliy injury or death of others in the even you are at fault.

Cons of Commercial Truck Insurance

  • Expenses. Commercial truck insurance often accounts for a trucking business’s largest expense after vehicles and fuel. 
  • Liability. If you don’t select a board safety net, you risk liability in case of accidents or while transporting certain cargo. 
  • Lack of Clarity. It can be confusing to ensure that your company is adequately covered and you are getting the price for the needed coverage. 

How Does Commercial Truck Insurance Work? 

Commercial truck insurance provides coverage for owner-operators as well as larger commercial companies. If you use your truck for commercial purposes, like for your business, it requires commercial truck insurance.  

Collision coverage and comprehensive coverage are options in basic commercial truck insurance. Many truckers will also require specialized coverage for the goods being transported. Inquire with your insurance provider to determine if auto liability covering damage or loss of goods is crucial to your insurance policy.

6 Reasons Best Price Commercial Insurance Isn’t The Best Decision

While including all possible cargo options can drive up your insurance premiums, choosing the cheapest commercial insurance also isn’t usually the best option. You need insurance specific to  the specific cargo, routes, and vehicles you plan to use.

But don’t just take our word for it. Here are the 6 top reasons to not sign up for the cheapest insurance option just because it’s inexpensive!

No Two Companies Or Drivers Are The Same

There is a saying that says, “You get what you pay for.” In the case of commercial insurance, that means that the cheapest quote might not provide the necessary protection for your company or drivers.  

Every driver or fleet has different needs, and if you’re looking for the best prices over individual coverage, you could put yourself, your business, company, drivers, or pedestrians in danger. 

Varying Locations and Routes

Factors such as geographic locations, weather, and specific routes can affect the necessary coverage. A company that operates in the south where hurricanes are a constant concern would not need the same coverage as a company operating in the northeast where winter storms are the primary weather concern. 

This is all to say that you might need different coverage where you are than a driver on the other side of the country. Additionally, not all coverage applies to all drivers. If your company operates nationally, you can further customize overage.

Price Comparing Overlooks Important Coverage

The cheapest insurance might not even cover the cargo or routes necessary for your business. If you are only looking for the cheapest insurance, you often overlook the details, and important coverage can slip through the cracks. For example, limited cargo insurance is cheaper, but it may limit business options or leave certain cargo uninsured. 

Vehicles With Specific Safety Needs

Not every vehicle has the same safety needs and most have drastically different safety add-ons. Some vehicles require forward and driver-facing cameras or collision mitigation technologies. 

Other transport for specialized cargo, like hazardous materials, will require additional coverage. Tow trucks, cement mixers, tractors, and extra-long semi trucks are other examples of vehicles with specific safety needs and insurance requirements. 

Underwriter May Not Understand All of Your Needs

There are dozens of commodities to include or exclude in coverage. Underwriters can quote different insurance premiums based on the commodities included and the type of coverage. That means that two seemingly identical quotes might cover completely different commodities. 

While it can be tempting to try to reduce premiums by limiting coverage, unless your business is highly specific, it is safer to have broader coverage for different types of commodities. This safety net ensures that every load is protected and doesn’t limit business opportunities if you happen to haul many different types of cargo.

Higher Out of Pocket Expenses 

When looking at insurance, consider that a lower monthly premium does not necessarily mean lower total cost. You could face a higher deductible in case of an accident, as well as other hidden costs. 

The financial risk in case of an accident might not be worth the lower premium. Consider if the policy will protect your business in case of an accident, or due to the deductible one accident could jeopardize the business. 

Get The Coverage You Need With TAP

The best coverage is the one that covers your business needs. In the long run, that will create greater savings and financial stability for the business because the risk of loss, damage, or accidents will be mitigated. While cheap insurance might seem the best, it is rarely the right choice to protect you and your business. 

Finding the best coverage, not just the cheapest, means finding an agency that understands the commercial trucking industry like the Trucker’s Affiliate Program (TAP) partnered with Cornerstone Insurance Services.

If you are looking for the best protection at the best price, then you’ll be pleased to learn that TAP offers both. They understand your specific needs and can provide customized insurance for owner-operators as well as insure an entire fleet. 

If you are wondering whether you have the right insurance for your business, TAP can help you save money and protect yourself all at once! 

FAQ

Do Commercial Vehicles Need Commercial Insurance?

Yes. If a vehicle is used for commercial purposes, including professional transport or any business in the transport space, commercial insurance is required. For trucks and large vehicles, you will need commercial truck insurance.

Why Do I Need Commercial Insurance?

You need commercial insurance to protect yourself from all types of liability. In the case of the transport industry, commercial truck insurance is usually required. Other types of commercial insurance are also required, depending on state requirements. If your business operates across states, there are federal minimum insurance requirements that all businesses must meet.

What Is the Difference Between Commercial and Regular Auto Insurance?

Commercial auto insurance covers the business. All drivers and vehicles are covered under the same policy. Even in the case of a sole proprietorship, commercial auto insurance provides additional protection for your vehicle, cargo, and company.

One-Stop-Shop With TAP

TAP & Cornerstone Insurance, is a one-stop-shop with access to multiple insurance markets to provide the best pricing and service available in the trucking industry. To receive a free quote, click the button below!

One-Stop-Shop With TAP

TAP & Cornerstone Insurance, is a one-stop-shop with access to multiple insurance markets to provide the best pricing and service available in the trucking industry. To receive a free quote, click the button below!