Why Truck Insurance Is Required
If you are the owner of a transport carrier business, getting your trucks insured is a must. Nowadays, truck insurance has become a legal requirement in many countries. Truck insurance is just like any other motor insurance, but being a commercial carrier it has some additional requirements. Apart from insuring the vehicle, truck insurance also includes cover for the goods it will carry. Even though this is an additional cost and does reduce your profit margin, it gives you and your customers an extra sense of security. In case of an accident or any kind of mishap, if the goods are damaged while in transit, you will be saved from the hassle of paying for the damages yourself.
Truck insurance as a package consists of many modules. These modules are as follows
o Primary Liability: This is a mandatory truck insurance which, like any other vehicle insurance, protects the owner from any damages or injuries as result of a truck accident.
o Physical Damage: Being a costly asset, it gives cover for the repair and replacement of the truck.
o Motor Truck Cargo: It gives cover to the truck drivers in case of damage or loss of freight during the transit.
o Trailer Interchange: This insurance gives cover to non owned trucks and equipment for any kind of damage or loss if the company posses any kind of truck interchange agreement.
o Non-Trucking Liability: This is a limited liability given to only those carrier companies that are permanently leased to an interstate regulating body for interstate commerce.
Some important factors deciding the level of truck insurance to be provided
There are many factors that are looked at before deciding the premium for an insurance plan. The most important factor is the age of the truck; older trucks get smaller insurance plans with large premiums. The second decisive factor is the present condition of the truck and how many accidents it has had, with each accident the level of insurance plan provided goes down. The type and amount of goods transported is yet another important factor. If the goods transported are costly or delicate, you get a lower valued insurance.
There are many big and small companies offering commercial truck insurance plans, but not every one is the best. While choosing a truck insurance company one should keep in mind these five points.
o Experience: For how long has the company been in the truck insurance business?
o Financial Strength: Is the company financially sound enough to handle many claims at the one time?
o Plans: What truck insurance schemes does the company have, and how flexible are they?
o Services: How customer-oriented are their services? Are their claiming procedures tedious or hassle free? Are their employees knowledgeable and easily accessible? All in all, are you getting good value for your money?
Many truck insurance companies that are new to the field can provide you with cheap truck insurance, as their primary requirement is to get established in the insurance industry.
About the Author:
Eric Token is a freelance insurance writer that specialises in truck insurance. For more information about truck insurance visit today.
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