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How Trucking Authority Insurance Works

Marc Green
September 3, 2021
How Trucking Authority Insurance Works

Insurance is something you should consider as soon as you receive the authority to operate your new trucking business under the guidelines provided by FMCSA. A trucking authority insurance will cover all the expenses caused by the loss of cargo or damage to products that occurred during loading and unloading. 

However, the type of trucking authority insurance you receive will depend on multiple factors including:

  • The number of trucks you own. 
  • The type of truck.
  • The quantity, nature, and value of the cargo being hauled. 
  • And the experience of your driver. 

Having an idea of the above factors will help you and your insurance carrier derive a plan suitable for your requirements. 

Types Of Coverages For Trucking Authority Insurance

Before you try to get trucking authority insurance, it is best to understand the coverages you may need for your business. Some common ones include:

Primary Liability Coverage:

This type of insurance does not cover your vehicles, but rather the damage which incurs to others when your driver is at fault. The primary liability insurance is a mandatory requirement by law for all commercial trucks and failure to provide this coverage can cost fines and penalties. 

General Liability Coverage:

The general liability insurance covers the costs of accidents that happen on business premises, such as loading docks and truck stops. It also includes the mistakes that occur in the delivery of the driver’s load. 

Physical Damage Coverage:

Provides coverage to repair or replace the damage that occurs to your vehicle and cargo in the event of an accident or theft. 

Non-Trucking Liability:

The non-trucking liability insurance covers expenses for any damage that occurs when your vehicle is being used for personal use. 

Motor Truck Cargo Coverage:

This insurance provides coverage for the cargo that is lost or damaged as a result of fire, collision, and striking of load. 

Trailer Interchange:

All trailers being pulled under a trailer interchange agreement are eligible for the specified insurance.

Medial Payment:

As the name implies, this insurance covers the medical bills for you or the passenger injured during the drive. 

Uninsured Motorists:

With this type of coverage, you remain protected in the case someone who hits you does not have the liability coverage to offer repair and replacement. 

How Much Does a Trucking Insurance Cost?

The actual cost of the truck insurance depends on several elements. For example, if you have a permanent lease with a motor carrier, you can expect to pay between $3,000 to $5,000 per year. However, if you own authority, the insurance cost can escalate significantly and start from somewhere around $9,000 per year. 

When buying commercial truck insurance, make sure to compare prices from different companies. You can also choose to go through an insurance broker who can help you figure out the fundamentals of the insurance sector. 

We hope you found this information helpful. Keep visiting Tricopolis Records for all the latest updates on Business, Economy, Finance, and Technology. 

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