Commercial Trucking Insurance Myths
05.12.2022
5 Biggest Commercial Trucking Insurance Myths To Avoid
The complexities of commercial trucking insurance can lead to confusion for many owner-operators and fleet managers. When it comes to getting the right coverage for your operation, do not allow misconceptions to leave you underinsured and vulnerable. Here are 5 of the biggest commercial trucking myths to avoid.
Myth 1: An insurance policy covers all drivers of a truck.
A common misconception we see here at RoadMasters is the belief that an insurance policy that covers a truck or a fleet automatically includes any driver who operates those vehicles. This problematic assumption can lead to major headaches down the road in the event of an accident.
The reality is that most insurance policies will only cover drivers who are specifically named on the policy. If you want to expand coverage to any driver, you need to ask for a Permissive Use endorsement on your policy.
A Permissive Use endorsement protects any driver who has your permission to operate the truck AND who has the appropriate credentials (i.e. a CDL license) in the event of an accident. Do not allow drivers who are not named on your policy to operate any of your commercial vehicles unless you have this endorsement in place.
Myth 2: Downtime insurance is unnecessary.
Your insurance policy will not automatically cover losses incurred while one of your trucks is out of commission due to an accident. And, these expenses can add up quickly. Every day your truck is out of service, you experience lost income. Paying for a rental truck and other emergency expenses can also quickly eat into your operation’s profits.
Downtime insurance removes the worry of having a truck inactive. This insurance typically covers any loss of income you experience, pays for towing expenses, and reimburses you for the cost of renting a truck so you can keep your operations running smoothly. Never go without downtime insurance before talking to your trucking insurance agent.
Myth 3: Commercial trucking insurance covers all truck uses.
Often, we see owner-operators and fleet managers who believe that their commercial trucking insurance covers their vehicles regardless of their use. Unfortunately, however, you cannot expect an insurance policy to protect you if you get into an accident while the truck is not on official business.
If you want coverage for your vehicle during personal use, on clients’ property, or for other uses not covered by your insurance, you may need to obtain additional coverage. Your insurance agent can help guide you toward the coverages you need based on your circumstances.
Myth 4: Cargo insurance should be a separate policy.
Cargo insurance protects you in the event that your cargo is lost or damaged. Often, owner-operators and fleet managers seek out separate (and more expensive) cargo insurance policies, but the reality is that getting this type of coverage can be as easy as adding a rider onto an existing commercial trucking policy.
Typically, all that is required is for you to contact your insurance agent and ask for the appropriate coverage to be added to your existing policy. In just a few moments, for significantly less cost, you can get the cargo insurance you need to have total peace of mind.
Myth 5: Price is the most important aspect of commercial trucking insurance.
Sometimes, owner-operators and fleet managers make their decisions about commercial trucking insurance based solely on price. However, not all trucking insurance is the same, and price is not the best way to choose a policy.
Instead, the right policy is the one that fits all of your insurance requirements – Without providing coverage you do not need. Start your search for commercial trucking insurance with an agent who prioritizes your needs and ensures that you receive comprehensive coverage at competitive prices.
Here at RoadMasters, we can help you get the right insurance at the right prices – And we can get you set up with coverage in as little as 24 hours. Contact us today for a free quote!
