Friday, April 10, 2020

How much does commercial truck insurance ACTUALLY cost? Truck Insurance In The United States of America

How much does commercial truck insurance ACTUALLY cost?
With insurance, some money saved upfront can easily turn into a lot more money spent later on. It’s important to consider your total potential costs when deciding which policy really gives you the best value for your money.

For example, be sure to understand what the deductibles will be on your policy. The deductible is what you will have to pay after a loss before your insurance kicks in to pick up the rest. So, if you have a $1,000 deductible and suffer a $5,000 loss, you will pay the first $1,000 and the insurance company pays the remaining $4,000.

Company A may have separate $1,000 deductibles each for the tractor, trailer, and cargo, meaning that if you are involved in an accident, you might be shelling out $3,000 before your insurance policy kicks in.

Company B may have a $1,000 deductible total, meaning that, for the same accident, coverage will kick in for the tractor, trailer, and cargo after you pay $1,000 toward the loss.

Even if Company A’s policy is $500 cheaper than Company B’s, it’s easy to see how Company B offers you better value.

COVERAGES — ARE YOU GETTING WHAT YOU PAY FOR?
Examining your coverages is important as well. Cheaper insurance is nice, but if it doesn’t offer the protection you need, then it’s not very useful. Some of the basic liability coverages should be similar across insurers, but you should pay close attention to some other coverages discussed above, like cargo.

Understand all of the trucking insurance coverages
Some insurance companies offer cargo coverage on a Specified Perils basis. If your loss falls outside the specific loss conditions listed in the policy, you could be left paying for that cargo loss yourself.