Understanding Insurance Issues

Six Things You Shouldn't Assume Regarding Commercial Truck Insurance

You need to have commercial truck insurance if you rely on a truck or truck fleet for your commercial operations. The following are six things you shouldn't assume regarding commercial truck insurance. 

There is nothing you can do to lower your premium costs for your commercial truck insurance policy.

You may be able to cut your company's overhead costs by reducing your commercial truck insurance premiums. Business owners typically have numerous options that can allow them to lower the costs of commercial truck insurance. 

Opting for a higher deductible on your policy is one possible way to bring down premium costs. Implementing a driver safety program and paying upfront for your policy are two other possible ways of bringing down your truck insurance costs. 

The premium cost is all that matters when you evaluate commercial truck insurance policies.

While your premium costs are an important consideration, they are not the only factor that you should consider when choosing a truck insurance policy. You should also consider the fine print and the amount of coverage that various policies offer to figure out which option is best for your company. 

Your commercial truck insurance policy will automatically cover any drivers you hire in the future.

It's important to realize that your commercial truck insurance policy will only cover drivers who are specifically listed on your policy. You need to notify your insurance company when you hire a new driver so that your new driver can be added to your policy. 

You have to pay the total premium for your commercial truck insurance policy upfront.

Some business owners don't realize that commercial truck insurance providers typically offer a pay-by-month option. This can make it easier for some commercial operations to budget for the costs of their truck insurance premiums. 

Your commercial truck insurance policy can't cover your cargo.

Business owners sometimes think that they must purchase a separate cargo insurance policy to insure the cargo they transport.

While purchasing cargo insurance is an option, it's also possible to add a policy endorsement for cargo coverage onto a commercial trucking insurance policy. In many cases, adding cargo coverage to your truck insurance policy may be the most convenient and cost-effective option. 

It's always best to buy commercial truck insurance from your general commercial insurance provider.

You don't have to have your truck fleet insured under your general business insurance provider. You should explore commercial trucking insurance options from other providers before automatically assuming that you should buy your truck insurance from the provider of your general business insurance policy. 

Contact a professional to learn more about commercial truck insurance