Auto liability insurance is a requirement if one wishes to legally operate a motor vehicle. There is a broad range of coverage options available, the prices of which will vary significantly among the different policies available. To locate the best car or truck insurance rates, consumers should be willing to put forth a suitable amount of time and effort.
However, before choosing a policy, it is important to determine the amount of coverage needed. In virtually all states, there is a specific amount of insurance that is mandatory, but this does not mean that additional coverage is unnecessary. Rather, certain individuals are wise to invest in policies that cover more than their state’s minimum liability requirements.
Types of Policies and Coverage
Because not all motorists need the same amount of insurance for their truck or automobile, there are several types of policies available, rather than a one-size-fits-all option. For example, basic comprehensive collision coverage pays for damage that occurs as the result of a truck or auto accident. It pays for repairs to the policyholder’s automobile, as well as damage to another person or car if the policyholder was at fault.
Another type of comprehensive coverage is referred to as “full coverage,” and will pay for the damage mentioned above, as well as damage or loss resulting from other incidents, such as vandalism, theft, fire or flood. If a car or truck is not yet paid off, the lending institution who issued the loan for the vehicle will require full coverage until the final payment is made.
Liability only is a type of insurance that pays for damage done to another person or automobile, but damage to the policy owner’s car or truck is not covered. For vehicles that are paid off, particularly older cars or trucks, auto liability only is sometimes the most cost-effective option.
How Rates are Determined
Regardless of which type of insurance one chooses, there are several factors that determine the cost of the policy. These include the age of the automobile or truck, the person’s age, and his or her driving record and credit score.
Those who have received a substantial number of citations are sometimes charged more for truck or car insurance, particularly if the citations were for speeding: it is an established fact that motorists who speed are much more likely to get into accidents with other drivers than those who typically adhere to speed limits. The amount of traveling a person does may also affect his or her premiums. As one would suspect, those who spend more time on the road have a greater likelihood of eventually becoming involved in a motor vehicle collision, thus making them a poorer risk.
Drivers with a history of frequent accidents can also expect to pay more for automobile insurance than those who have not had these problems. Similarly, consumers with poor credit are often charged more than those who have good credit scores. Such issues should be discussed with a licensed agent before a policy is selected.
Choosing an Insurance Company
It is important to comparison shop before making a final decision. All companies will state that their rates are the best, but certain agencies offer distinctly lower rates than their competitor’s.
Obtaining word-of-mouth recommendations and reading customer reviews online is also helpful activity. The industry is very competitive, which can be used to the consumer’s advantage when shopping for rates. For this reason, it is never wise to choose the first policy offered. Anyone in need of auto liability insurance or liability insurance for a truck or commercial vehicle should compare multiple policies to ensure that the most appropriate option is selected.
According to data published by CargoNet, businesses and consumers in the US lost cargo worth $23 million during the first quarter of 2015 alone. This was a significant increase from the $9 million worth of lost cargo reported during the first quarter of the previous year (2014). Although most of these thefts occur at storage locations such as warehouses (23%), transporters have also reported cargo thefts at truck stops (16%), parking lots (10%), and unsecured yards (10%). In light of these numbers, every transport business should own adequate cargo insurance. Below is some more information on this topic.
Definition of Cargo Insurance
Cargo insurance is a type of insurance policy that covers risks associated with the loss or damage of goods in transit as well as goods in storage facilities. This coverage remains valid while goods are transported from their point of origin to their final destination. Businesses require this type of insurance because suppliers and shippers may not cover losses incurred while goods are in transit/storage or they may offer inadequate coverage.
When to Purchase Cargo Insurance
Firstly, you should purchase cargo insurance if you intend to ship expensive, rare, or unique goods. Losing or damaging such valuable items could saddle your business with crippling legal and financial liabilities. This type of coverage will also come in handy when shipping beverages and food. This is particularly important because, according to CargoNet, 33% of all cargo thefts reported in the US during the first quarter of 2015 involved food and non-alcoholic beverages. Thirdly, cargo insurance is vital when shipping goods to regions where they are likely to be stolen while in transit or storage. In the US, California, Georgia, Texas, New Jersey, and Florida lead in the number of cargo thefts reported, according to CargoNet. Globally, a study done by FreightWatch International found that South Africa, Mexico, Brazil, USA, and Russia have the highest rates of cargo theft. Finally, this insurance product would come in handy when transporting fragile items.
Factors to Consider When Purchasing Cargo Insurance
Since cargo insurance is lightly regulated in the US, the terms and conditions tend to vary widely from one insurer to the next. As such, you should shop around and compare cargo insurance products offered by various insurance companies. Furthermore, scrutinize the fine print thoroughly because some policies cover almost every imaginable risk while others do not. For example, some policies exclude risks related to loss of market (buyers cancelling orders), warlike actions, any form of harmful radiation (such as nuclear radiation), and piracy. Alternatively, you can forget about the fine print and purchase an “all risk” policy that covers all cargo loss bases. Most suppliers and manufacturers use US-based insurers when shipping goods from overseas in order to benefit from America’s robust legal system and insurance laws. Suing and collecting compensation from a foreign insurer can be a tall order even for a company with huge financial resources.
Conclusion
Cargo insurance is important because it covers losses associated with theft or damage of goods in transit. To get the right coverage, shop around and compare available insurance policies. This is in addition to scrutinizing policy terms/conditions carefully and purchasing coverage from a US-based insurer.
It is no secret that operating as a truck driver and hiring truck drivers have their risks. In fact, if you have been shopping for high risk commercial truck insurance then you should understand by now exactly how difficult it is to find the right plan. Luckily, despite its tendency to be difficult to find, getting the right trucking insurance is not impossible.
6 Steps to Finding High Risk Commercial Trucking Insurance
1. Know what you need and can afford upfront.
Insurance is seldom a “one size fits all”. As such, the first key to finding the right insurance is knowing what you need and how much you are able to pay for it. Admittedly, you may have to compromise on one or both factors but the compromise should not be so drastic that it negatively affects your bottom line.
2. Don’t buy before you compare.
It may be tempting to pick whatever is available but please don’t! In most cases, your prospects of a decent insurance plan are not so grim that it eliminates shopping around as an option. Once the option exists, use it.
3. Do your research before you start shopping.
Shopping around can have a negative impact if it is done incorrectly so beware! In some cases, being turned down by multiple providers can make it harder to find the right high risk commercial truck insurance. Therefore, it is best to do your research and ensure the company is a proper fit before applying. Granted, this does not guarantee a “yes” but applying to unsuitable companies is a sure way to have those rejections pile up fast.
4. Drive or Hire Wisely.
The amount of claims made during your last insurance period has a lot to do with your ability to find insurance. Therefore, every attempt should be made to (legitimately) limit submitted claims. Competent drivers who play by the book will not eliminate all risks (especially in an insurer’s eye) but they are likely to look better on paper.
5. Have your paperwork in order.
Speaking of paper, shopping for high risk commercial truck insurance can be a tedious task so try not to make it worse. Being disorganized or constantly searching for an important document/form is just one way to further complicate the process. At some point you are bound to frustrate yourself and/or your potential insurer.
6. Use a professional to search.
When all else fails, or when you simply do not want to do it yourself, enlist a professional to find the right insurance package for you. This works because it allows you to hand over the hassle to someone who is experienced in handling it.
As a professional service that connects you to suitable insurers, Ratemytruckinsurance.com has a dedicated team of people who know what to look for, where to look and the pitfalls to avoid when shopping for high risk insurance.
Services like ours allow people like you to get what you need without investing the arduous amount of time it can take. The result is more time to focus on doing business while knowing your high risk commercial truck insurance needs are being handled competently.
