There are many different types of liability coverages providing varying amounts of protection.  As an owner/operator of a commercial truck, it is advisable to consult your lease agreement with your carrier to determine which type of coverage you are required to maintain. Many contracts will use the terms bobtail liability and non-trucking liability together, suggesting that the terms mean the same thing. However, there is a subtle, and somewhat confusing, difference about the actual definition of bobtail liability coverage. You should know what bobtail liability is and have the right commercial truck insurance coverage in place before an accident costs you an enormous amount of money.

Using your tuck without the trailer attached is commonly referred to as “bobtailing” or “deadheading.” If you want to or are required to have insurance coverage for when your truck is operated without the trailer, the type of insurance you should purchase is bobtail liability coverage. This type of liability protection will cover you when the truck is driven without the trailer, regardless of whether or not you are under dispatch and covers any damage that occurs to your truck. It would probably be helpful to have a few examples to further explain when and why bobtail liability coverage is necessary. The coverage would apply, for example, when your drive your tractor without its trailer to and from the terminal. It would also apply when you are traveling between loads without the trailer attached. Again, bobtail liability coverage is applicable whether or not you were dispatched for these hauls.

True bobtail liability insurance offers broader coverage than other types of liability insurance. It can be more costly. Some motor carriers prefer their owner/operators to have bobtail insurance. Because the coverage is so broad, it often limits the carrier’s own exposure. Sometimes, the motor carrier’s contract or lease agreement will have language in it stipulating the requirement for liability coverage as either bobtail or non-trucking liability. Or, the wording in the contract may require different degrees and/or types of coverage. As an owner/operator, it is important for you to ask the carrier specifically which coverage they want you to have. By asking specific questions and understanding what bobtail liability truly is, you can be certain what liability you need to assume for your truck.

The commercial trucking industry relies on transporting merchandise to the end consumer. We believe those goods will continue to be transported by commercial trucks even in these challenging times. It will be the most efficient businesses that will thrive. While you cannot change the current economy, the spending habits of the end consumers, or rising fuel prices, you can assess the appropriateness of your other costs. While commercial truck insurance is required to drive on the roads in this country, you can maximize your chances of lowering your premiums. So, it is very important for you to understand what actionable steps you can take to obtain the most cost effective, quality insurance coverage for your commercial truck fleet. Here are a few factors that will influence the cost of this insurance.

Maintenance of the vehicle: Newer trucks are usually better maintained than older ones. However, consider it an investment when spending money to improve the working condition of your older trucks as well. Department of Transportation inspections are required and can provide a record of your company’s maintenance of the truck fleet’s brakes, tires, lights, and other safety features. Proper maintenance can result in lower premium rates. A commercial insurance company may have a qualified technician evaluated the condition of the vehicle. Being diligent with your preventive maintenance schedule is one of the best things you can do for your trucks.

Driving Record and History: You can receive lower premiums if your drivers’ have clean driving records. The driver, of course, needs a Commercial Driver’s License to operate a commercial truck. He or she should have been driving commercial trucks for a few years and have well established routes. These factors will be taken into consideration when determining insurance coverage rates. Believe it or not, hiring either much younger or much older drivers can increase the price of your insurance. Premiums are usually less when the drivers are between the ages of 30 and 65.

Safety: Take a look at your safety record. It is probably no surprise to you that safety is a big concern in this industry. Commercial trucks can cause a lot of damage during a collision. So, an insurance company will be taking a look at how well you alert the public about your fleet. For example, do you have safety signs such as “Wide Right Turns” with graphics, or information posted on the truck about blind spots and mirrors. Even placing the ubiquitous “How’s my driving with an “800” number alerts an insurer that you are serious about safety, especially if you have actual feedback from the “800” number about your fleet. Making your commercial trucking company’s commitment to safety obvious to the driving public can help reduce your insurance rate premiums.

Maintenance, driving record and safety are only a few of the areas where you can possibly reduce your commercial truck insurance premiums. A good insurance company can help you find many more ways to provide you with the best coverage at the most efficient price. There are many commercial insurers out there, but with Reliance Partners, we can work with any size company, help them focus on their needs, and work together to find the best solutions to bring the cost of your commercial insurance down. We can make it easier to minimize costs and maximize profits even in this economy.

Trucking insurance is probably the greatest expense that a fleet owner can have. With cost of this expense being so high, you may be tempted to choose two things:

1.    find the most inexpensive insurance provider
2.    downgrade the amount of coverage you currently carry

If you are considering either of these choices, also consider this: by doing so you could be financially devastated after an accident. But, you need to find the right insurer and the right coverage for your truck fleet. Just by following these simple steps, you can successfully navigate through the maze of trucking insurance.

Prior to contacting an insurance company you will want to determine the type and amount of insurance coverage that you need. Spend some time researching what options are available to you. If you do these three simple things, you will have a better chance of finding a policy with the highest amount of coverage at the most fair price.

There are many options to consider when determining the type of coverage that you need. Do you want the coverage to include insurance for you, your trucks, your cargo, fire and/or theft, collision, worker’s compensation? Make a list of the types of coverage that will be right for your company. Then, determine the coverage limits that you are most comfortable with for each type.

The next step is to find the insurance company that will provide the types of coverage you have identified at the limits you need. Do not be satisfied with information from just one or two providers. Be sure to request quotes from numerous insurance providers. Having multiple quotes will allow you to compare policies equally and choose the policy with the coverage you want at the best price. One way to accomplish this task is to use a truck insurance comparison website. Once you have your quotes, carefully review each policy and be certain that each contains the same types and amount of coverage. You may want to ask the insurers you are considering if they offer a discount for paying your premium all at once rather than in installments. This step may take the most time, but it can save you the most money in the end.

Since a trucking insurance policy will be one of your biggest purchases, be sure to learn as much as possible about the providers from whom you are considering purchasing your insurance. You should check with various rating systems and review how the insurance companies compare with one another. Another step would be to find out if the company you are considering has the financial stability to pay out any claims that you might have.

Once you have decided on the policy that best meets your needs and have chosen the insurance provider with whom you feel most comfortable, remember to re-evaluate your coverage each year. Your trucking business will grow and change and the type of coverage you need will change right along with it. The trucking insurance market is also very competitive. By annually evaluating your truck insurance coverage, you could realize even more savings by making adjustments to your insurance from year to year.