Monday, February 2, 2015

Truck Insurance

Getting commercial trucking insurance is a necessity for all independent truck drivers. However, it can be quite expensive to maintain and may affect your bottom line when it comes to just how profitable your business will be on the road.

So, it is important to understand the fundamentals of truck insurance and what you need in terms of coverage so that you can balance the proper protection with your budget. However, all it takes is one accident to really elevate your premiums, so the policy itself must be well designed. This will means comparing prices from different insurance companies as well as understand what the different terms and coverage means for your needs.

Truck Insurance Terminology

Here are a few terms that you will need to know in order to get the right insurance for your needs.

Bob Tail Insurance: This is insurance for when you take your truck home. This is very important for all commercial trucks and particularly the owner operators.

Cargo Insurance: This covers the cost of all damaged or stolen items out of the trailer. So, if the cargo you are hauling gets damaged on the road or if it gets stolen, you are covered with this type of insurance.

Liability: This covers all damage to the other vehicles or parties involved in the accident.

Physical Damage Coverage: Basically, any physical damage to your vehicle caused by an accident, another vehicle or person or the weather such as hail for example will be covered.

Reefer Insurance: This is extra coverage for any damage caused by the failure of the reefer motor. However, it does not cover standard repairs to the motor unit. A good commercial insurance broker can help you get the coverage that you need at the right price.

Keeping Up with the Premiums

Now that you have purchase the right policy for your needs, the next step is paying the premiums. This may seem a daunting challenge at first when considering just how much you have to pay at the beginning, but there are ways to help you through this process.

Namely, you may be able to finance the premiums over the next several months through a finance company and then pay them back at a pre-determined rate. There are many companies that specialize in this service and you may want to contact them to find out their interest rates and payment plan so you can at least get past the point of the paying for the insurance and start making money on the road in the first few months.

This means a down payment of 10% up to 20% of the total cost of the truck insurance policy followed by 10 to 12 monthly payments afterwards. When it comes to financing your trucking insurance in this manner, you can stay ahead of the bills and get out on the road to earn the money.

Be sure to get quotes from different finance companies so that you can find the best rate of payment that meets your budget. 

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