Independent truck drivers own their vehicles. They operate in a for-profit manner for themselves. Yet, their biggest and most important asset is their truck. Protecting it is essential to ensuring the business continues to operate. Trucking insurance is at the heart of this protection. Here is what you should know about updating your trucking insurance as an independent driver.
Insurance Costs Are Higher Initially
During the first year of ownership, trucking insurance costs tend to be higher. New drivers are a higher risk to the insurance company. As a new independent driver, you are more likely to suffer an accident. Remaining accident-free can help you to keep your insurance costs lower. And, over time, this will fade. Talk to your agent about whether you can expect a rate decrease after the first year.
Insurance for What Is on Board
Truck drivers operating their own vehicles need to invest in cargo insurance. It protects the company’s assets on board the truck. It covers all of the contents of the truck. This type of insurance value can change depending on the value of the items you typically move. If your cargo changes significantly, you might need to update your policy.
Liability Insurance Is Essential
Truck driving is dangerous. And, truckers are at an increased risk of creating significant damage to another person’s vehicle if they strike it. As a result, liability insurance for truck drivers, especially independent truckers, is high. Work with your agent to estimate the amount of damage common in your area or during the last year. Proper coverage minimizes any risk of having to pay out-of-pocket for losses.
Protecting the Vehicle Itself
Of course, property insurance is also important for truckers. The amount of coverage on your truck should be enough to cut any risks associated with the truck. This includes theft, vandalism, storm damage, and other concerns. Your insurance agent can help you here. Most important is to have proper coverage even if you have a loan on the truck. You want to know the truck’s value (including what you owe) has proper protection.
Trucking insurance can change often. As you gain experience, update your coverage. Speak to your agent about your new risks, too. If you change the type of runs you do, how frequently you operate your truck, or the value of the contents on board your truck, let your agent know. Have a policy that matches your truck’s needs and keeps you financially healthy for the long term. Independent drivers may have more need to monitor conditions like this.
Also Read: The Benefits of Trucker Pollution Insurance