Insurance… We all need it but not all of us fully understand it and know what’s a real truth or a myth. What is true is that without our trucks our businesses would not exist, our trucks move the entire countries products and then some. Here are the first 3 myths is a short blog series we will be posting in November. By the way, if you haven’t heard about our November Promotion… click here! Beware of truck insurance myths! They can cost you more than you can imagine.
All my employee’s are covered when they drive a business vehicle.
Verify that you have “Permissive Use” which is when the policy covers you drivers as long as you have given them permission to operate the vehicle. Some insurance companies will only extend coverage to drivers who are specifically named. Rates will be different so be sure to ask all the questions up front.
Downtime after an accident won’t affect my bottom line
Not true, if your truck is down for 30 days after the accident you may only have a 50% chance of survival if you operate 3 or less trucks. You want to make sure your policy provides a rental or downtime payments. This will help you get back on your feet following an accident and / or claim.
If I have a motor carrier policy I’m covered.
What people often don’t understand is that a “motor carrier” policy only is the liability portion of the insurance for owner operators. This won’t cover any repairs needed to your truck from the accident, for those repairs you will need your own physical damage policy. This may be offered by the company you are leased with at a reduced cost or you can buy it on your own. Another thought is that the motor carrier policy only covers you when you’re under dispatch. If you have an accident while running around not under dispatch you will need to have a non-trucking liability and physical damage policy to be covered.
This ends part 1 of our trucking insurance myth blog series.