Top 10 Mistakes Truck Owners Should Avoid While Buying Commercial Vehicle Insurance

When you own or operate a commercial truck, it is a huge responsibility and the proper commercial vehicle insurance coverage will help to protect this investment, stay legal with the regulations of states and safeguard your livelihood.

Yet when buying truck insurance, a significant percentage of trucking owners make mistakes that could potentially cost them dearly. We’ve put together the top 10 blunders take to avoid when you’re in the market for commercial vehicle cover to help guide your decisions.

1. Neglecting the Commercial Truck Insurance Needs

It is important to note that commercial vehicle insurance is not the same as personal auto insurance. It includes special risks, like damage to cargo, liability for hired drivers and business interruptions. A common mistake that many truck owners make is thinking their personal vehicle policy would suffice, which may leave you with a rejected claim or inadequate coverage just when you need it.

2. Underinsuring the Vehicle

Certain truck owners may have minimal insurance so that they can save on the best commercial vehicle insurance premiums. Because underinsuring your truck can pay off in the short term, but might also leave you with huge out-of-pocket costs if it gets damaged or is involved in a wreck. Make sure your policy has coverage that meets or exceeds the truck’s current market value (which may include any extras or modifications).

3. Not Considering Cargo Insurance

Although the truck has to be safeguarded, its payload is often valuable. Failing to have commercial insurance means you’re at risk for losses that result from theft, damage or spoilage. Ensure that your insurance policy includes cargo coverage as it pertains to the type of materials you generally transport, and avoid financial headaches.

4. Overlooking Liability Coverage Limits

Other people can receive property or bodily harm with commercial truck accidents. Too little insurance for commercial car and you have the paltry amount your insurance policy limits will pay which could leave you open to lawsuits that cost more than what’s in your policy—and subjecting assets you own to those liabilities. Sufficient liability limits protect you from financial devastation if you’re found to be at fault in a serious accident.

5. Not Disclosing All Drivers

If you do not list all authorized drivers, expect your policy to be null & void. If an unlisted driver drives your car and causes the accident, you insurer might deny the claim. Be sure to always “add” any driver who uses your truck in a regular basis to make sure that your coverage is still there!

6. Not Complying with State and National Insurance Mandates

Commercial vehicles are regulated by many agencies. Failure to comply with these requirements can lead to fines, suspension of your license or legal problems. Make sure that your policy is in compliance with all governing laws to avoid fines.

7. Selecting Insurance By Price Only

Price is an important consideration, but choosing insurance for commercial vehicle based solely on cost should not be your objective. Low-cost plans, meanwhile, typically have minimal coverage or high deductibles. Concentrate on the details of coverage on the policy, along with and claim settlement history and reputation of insurer to get maximum value.

8. Failure to Read Through The Policy Terms And Exclusions

All insurance policies have conditions and exclusions. Missing or not understanding this information can be a real surprise at claim time. Be sure to look for limiting conditions, such as deductibles, coverage limits and exclusions for things like wear and tear or unauthorized use.

9. Not Keeping Policy Updated After Making Changes

Some truck owners outfit the trailer with upgrades to increase performance or efficiency. Failing to change the insurance for commercial truck policy after a modification may result in denied claims if the changes are a factor in an accident. Let your insurer know about any modifications or upgrades to ensure that the value of your protection remains accurate.

10. Not Consulting an Insurance Expert

Finally, attempting to understand the nuances of commercial truck insurance on your own is a dangerous road to maneuver. Every trucking business is different, and an insurance professional will be able to assess your risks and suggest a policy that will provide custom coverage. Spending time with an experienced agent or broker can save you from expensive mistakes.

Conclusion

The money you spend on commercial vehicle insurance is a small price to pay for protecting your truck, cargo, business—and ultimately—the peace of mind that helps ensure you get a good night’s sleep. Follow these tips and you should be able to avoid some of the most common mistakes such as by assessing coverage needs, learning how policy details affect costs and trusting reputable insurance professionals.

In this way, you can rest assured knowing your trucking business will be safeguarded on every trip. The best place to buy the best commercial vehicle insurance is Policy Legit. Our insurance experts help you from choosing the right policy to claim settlement.