Truck Insurance Tutorial

Liability Insurance

• Primary liability insurance is the minimum amount of insurance required by both state and federal law. It is required because it covers damages and injury for the other driver and vehicle in the event of an accident but it does not cover damages to you or your vehicle. The actual amount of damages covered can vary by insurance company and by policy.
  
  Physical damage liability is a tier above the basic insurance in that it protects you with regard to physical injury in an accident in addition to the damages suffered by the other party. Physical damage liability can also provide protection against damage to the truck from collision, theft and natural disasters.
  
  

Cargo

• Motor truck cargo liability is usually an add-on to a base policy that is already in place; this addition provides for damage to the cargo a truck is carrying due to accidents, fire, theft or vandalism. The price of this addition can vary greatly, since it largely depends on the type of freight being carried. Comparison shopping can be very beneficial, as the rates for the same cargo can differ from company to company. It is vital that you also know the exact terms through which any insurance damages are paid out, as there are frequently loopholes that insurance companies can use to get out of a claim For instance, some companies won't pay for flood damage, citing the flood as an "act of God" and something for which they are not liable.
  
  

Non-Trucking Addendums

• Non-trucking insurance policies deal with events and damages that occur when the truck is not in motion or the driver is not officially working. If the truck is parked and a branch falls off a tree and breaks the windshield, non-trucking policies would cover that damage, whereas the more basic policies would not. These policies only apply when the truck is not loaded and the driver is not under dispatch. Once either of those takes effect, the primary policy takes over and has precedence.