The transportation of logs plays a vital role in the economy given that most of the products that make our homes habitable are made of wood. Due to this, tons of woods are hauled every day from one market to another depend on where the wood is required for further processing. This process of hauling demands for logging truck insurance to ensure that the wood is transported in a safer manner. Notably, the hauling of larger logs could seem such an easy task yet there are risks involved, making it one of the most dangerous freight haul in our modern roads today.
The Risk Involved in Log Truck Hauling
Logs are quite heavy . Depending on the tree from which it derived, a log mass of between 50 to 100 feet can weigh up to a ton each. This means that while on transit, the log could easily tip over and cause injuries to other motorists on the roads. Their sheer weight make them even more dangerous as compared to the other boxed loads.
Securely tying log loads have been effectively used for long in hauling logs. However, accidents still occur as there have been reports of securely tied logs bursting along the way causing fatalities to other motorists. Such incidents have involved rolling logs smashing into oncoming traffic, resulting into damages on other motor vehicles and even the motorists losing lives.
Therefore, in spite of the much precautions that loggers undertake to secure their logs on their trucks, accidents still happen. This is a reality that loggers must live with, especially when they are hauling logs for long distances across the country. Log truck insurance ensures that in the event of such eventuality, the log haulers do not suffer extensive damage in terms of financial liabilities.
There are several insurance companies that are providing coverage for log hauling. Each of them have got different packages to offer and it is therefore, important to look into them to make the most of their packages. So, what do you need to check out when looking for a logging trucker insurance?
Check the Benefits that Come with Their Packages
This is very important. You first need to consider whether the logging truck insurance offers you any direct benefits as the insured. Understanding the provisions in the log truck insurance package is certainly your first step in gaining from the cover. Never make the mistake of assuming that logging truck insurance is a mere formality that can be overlooked since it is not really needed. You never know when an accident or emergency will fall upon you, and in such event, the insurance cover will save you a lot of damages on your business.
Check the Quotes from Reputable Logging Insurance Companies
Beware that the cost of some similar polices could be lower as compared to those of the established insurance companies. You do not need to risk paying less with a company that has got little experience in these matters. You may be required to pay more for a particular policy with an established company. The advantage is that such established entities offer you a level of confidence that the other less established companies cannot.
Commit Yourself to the Insurance Cover of Your Choice
You have understood what insurance covers are available for your log hauling business and you have settled on one that best reflects your interests. Many are turned away by the cost of the insurance cover and opt for cheaper options which do not offer much in case of an accident or emergency. You need not settle for less when it comes to the safety and protection of your business. Have the satisfaction of always knowing your assets and employees are comprehensively covered and this is only possible through purchasing an insurance cover that is comprehensive, most of which come at a dear cost.
Check the Limitations of Your Coverage of Choice
It is quite easy for you to overlook the limitations that are inherent in your log truck insurance of choice whenever you sign a policy agreement. You need to ensure that you understand the rights and limitations of your enterprise before you embark on signing the policy. Check with your insurance agent on the provisions of the policy in terms of the differences in accidents and emergencies. It is, therefore, important for you to understand what it is that you are buying before signing the policy.
Consider the Competence of Your Drivers
Your employees are the heartbeat of your enterprise. You, therefore, need to consider the suitability and competence of your drivers when it comes to logging truck insurance. Many good policies will demand you to prove that your enterprise has evaluated all the eligible employees and assure them that they are not susceptible to drug abuse, violence, or anything that could impair their judgment when they are on the road with your trucks.
Accordingly, you are required to provide proper training for your drivers in order for you to increase your chances of acquiring the most comprehensive log truck insurance coverage. Most logging insurance companies that have good policies to offer are reluctant to engage with businesses that do not have properly trained and experience drivers.
Final Verdict
It is better to be safe than sorry. Nowhere else does this maxim holds true than for your log truck company! You need not take logging truck insurance as a casual requirement of the law. The logging insurance policies are actually here to cushion your business from imminent damages in case of accidents and emergencies.
However, you need to be on the lookout for the best insurance cover that will cater for your business interests in the best way possible. With many companies providing log truck insurance, not all of them will give you what you need when an accident occurs. Make the five points highlighted above your checklist and you will save yourself thousands of dollars and hours of headache when shopping for the best insurance cover available.
Some people own several tractor trailers for business purposes or a new entrepreneur might have only one. It might be a case where certified and trained drivers make cross-country freight delivery or trailers that make in-town deliveries for a company. Whatever the situation, tractor trailer insurance will be required that is suited to your particular business as well as the risks which will be involved. This is because every business is different from another in their particular risks, vehicle uses and also the type and amount of coverage required.
Unless you are an insurance expert, you will definitely need assistance in making the right decision regarding tractor trailer insurance for any business that you may have. Begin by making contact with a trusted source specializing in this type of insurance. Finding the right agent to talk to about tractor trailer insurance policies will allow you to choose the best available rates. In addition, the agent will assist you throughout the entire process for insurance coverage for your business.
Types of Tractor Trailers Insured
There are different types of vehicles that benefit from tractor trailer insurance. These trailers include but are not limited to:
• Utility
• Transfer boxes
• Tilt
• Tank
• Refrigerated
• Pole
• Lowboy
• Logging
• Livestock
• Horse
• Gooseneck
• Flatbed
• Dump body
• Dry freight
• Concession
• Bulk commodity
• Bottom dump
• Auto hauler
What to Expect from Tractor Trailer Insurance
Like with many other vehicle insurance, tractor trailer insurance have different forms of coverage. Each of these are designed in a specific way to offer protection to personal assets as well as your business from disastrous damage and loss. Tractor trailer insurance required may include:
• Coverage for Physical Damage
This takes care of the expenses for vehicle damage that occur in any accident or incident. The coverage involves payout for collision damages resulting from an accident and also complete coverage for any damage that result from vandalism, theft and additional collision causes.
• Liability Insurance for Commercial Truck
In a case where the driver employed to your business or yourself is responsible for a particular accident, this type of insurance covers all liability risks. These cover bodily injury liability. That is, the party that is injured will be compensated for medical expenses, injuries costs as well as damage to property occurred during the accident. Legal defense costs will usually also be covered even if you or your hired drivers are responsible for the accident.
• Coverage for Motorists who are underinsured or uninsured
This offers payout to anyone involved in an accident resulting in damages and injuries where the driver of another vehicle caused the accident. This coverage is applicable if the insurance coverage for the driver at fault is not adequate to compensate you for property damage and injuries.
• Coverage for Truck Cargo
This covers any item theft or damage to items that the trailer is hauling. This is ideal especially for items that are expensive to replace. It is best to include this type of tractor trailer insurance.
There are several other forms of insurance coverage that are not mentioned here. The options will vary as policies are structured to fit specific needs and concerns. For instance, a non-owned vehicle insurance policy may be required in the case of an employee required to use their own vehicle while conducting business on behalf of the company. In this case, anyone driving these vehicles will be protected from expenses that result from accidents occurring during hours doing business when the vehicle driven is not owned by the company.
Choosing the Right Tractor Trailer Insurance Company
The question will always come up concerning which insurance company is most ideal for your specific tractor trailer business. Insurance companies that offer coverage to drivers of trucks, trailers and other types of motor vehicles do not all operate the same way. Some use independent agents to sell their insurance, while others use sale representatives from their own companies. Some insurance providers may offer coverage for trucks or tractor trailers only while others may sell this type of insurance as an option from a several other coverage offers. They also vary in certain types of specializations for providing insurance coverage. For instance, some cover only owner-operators, equipment that are temperature-controlled or large fleets. You will find that some companies sell to several hundreds of customers and others on sell to a small number of customers.
Due to the many variations in types of insurance, it is recommended that you choose a company that sells insurance for tractor trailers and commercial trucks only. This is because the insurance providers that do not specialize in these types of vehicles tend to overlook certain details. There are some things that a specialized provider will pay attention to while others would not know to look for these things. For instance, it might not be the first thing that come to the mind of an agent of a non-specialized company that to be eligible for a coverage for a back-haul profitable delivery of items that are not carried frequently, an owner-operator might need to do a coverage upgrade on a single-trip or temporary basis. A company specializing in this insurance coverage would be aware of the possibility of the owners needing this coverage, discuss it with the customers and give them useful details and recommendation for affordable policies of this type.
What to Look for When Choosing a Tractor Trailer Insurance Company
Experience is the first thing to look for when looking for providers of tractor trailer insurance. The length of time in the business is a factor which contributes to the kind of services offered. In addition, you should be able to compare costs as well what is covered with the different types of insurance. The financial strength of the company or the ability to meet the expenses of several claims simultaneously should be of concern when choosing a tractor trailer insurance. Although it might require some amount of effort, ensure that the overall value in convenience, money and time are clear regarding the services and products provided.
Leasing a truck is a good option for those who want a reliable vehicle but are not able to buy one just yet. It also provides you with an opportunity to be your own boss. Many truckers have to submit themselves to companies that force them to take jobs they otherwise would not take; thankfully, there are other options.
Though leasing may be a good idea, you should not take this contract lightly. There are a lot of intricate details that must be considered. For example, have you tried understanding your vehicle lease agreement before you sign and the type of coverage they require you to buy?
Many simply do not question this because they believe the truck leasing representative will go over the details without hiding anything important. It may not be the truck leasing company’s intention to withhold information as they might just overlook it. Still, the wisest thing to do is to be knowledgeable, so the following are a few things you need to understand about your lease and coverage that should be covered before you sign the agreement.
Understand the Main Lease Types
There are two basic leasing types: one is the operating lease, and the other is the capital lease. The capital lease gives you the benefits of owning the vehicle and usually guarantees an option to buy at the end of the lease term. If you choose to purchase the truck at this point, it should be the price agreed on when you signed the lease agreement.
The second type of lease is the operating lease, which is leased for a pre-agreed term. The main difference is you may or may not get the option to buy the truck at the end of your term. There also may not be a reduction in the price.
Dissecting a Bad Contract
A contract between two entities will not be fair if one party is unaware of the little tricks used to take advantage of the other party. The other party could be you if you do not pay attention to some of the major issues.
One of the biggest mistakes you can make while negotiating the lease is agreeing to a deal that is based solely on how many miles you drive. This might seem okay, but you may end up spending more than you need to.
It is always important to ensure that the interest rate, the term, truck payment, and the final price of the truck are agreed upon before you sign the lease. There are some leasing companies that might try to leave these open ended so that they can change the prices, which can get expensive.
You should also be weary of any company that does not want you to have the lease purchase agreement looked over by a professional. You do have the right to have it looked over before you finalize the deal, so this is definitely a red flag that the company might be trying to rip you off one way or another.
Do Not Overlook Insurance
One thing that needs to be addressed in the terms of your lease is the insurance. The leasing company will offer insurance, but it may not be good enough to protect what you can consider your property for the time being. The insurance may be a little too cheap, or you may be paying for what you do not need.
It is better to contract your own independent insurance company to know exactly what is being covered, and check out other prices as well.
One type of insurance that some contracts may not give you is a non-trucking liability insurance. This type of coverage takes care of you should you be operating the truck for your own personal purposes.
Another little hiccup in most lease contracts is the insurance does not provide bobtail liability. This type of liability takes care of you when you are operating the vehicle without the trailer attached to it. Sometimes a trucker will leave the trailer behind to make a quick errand and save on gasoline. It is your truck for now, so you should be able to do whatever you need to do without worrying about coverage.
You should consider having breakdown coverage, just in case the truck fails for some reason, and you are stranded somewhere in the middle of nowhere. Towing a truck is not as easy as towing a car. The coverage should cover towing and any labor that needs to performed to get your vehicle in tip-top shape again.
Many insurances do not cover any personal property that you might decide to carry on your truck. Sure, the truck is mostly for you to transport other goods, but that does not mean you will not find any use for it on your own time. Your goods matter to, so taking advantage of a good personal property protection insurance is wise.
The gap coverage is often overlooked, but it provides protection on the difference between the loan and the truck’s market value should there be an accident where the truck is completely totaled.
One last type of insurance that is sometimes not provided is a full passenger accident coverage that covers anything that could occur to your passenger or employee. Some lease contracts think that you are going to work alone, but that may not always be the case. It is important that the basics are taken care of like medical expenses or even death.
Failing to Pay Attention to Those Strange Limits
All leased vehicles come with limits, which are sometimes reasonable like not modifying the truck’s overall look. Modifications to the truck could make it hard for the company to lease the vehicle to another, which is what this leaser wants to do.
Still, there are a few limits that really do not make any sense and should not be a part of the deal that you are making. For one, you should stay away from, or renegotiate, a lease contract that will not allow you to perform upgrades that will help improve gas mileage. This will help you make a little more money as well as the leasing company in the long-run if you just return the vehicle.
You also want to be weary of a leasing company that is asking you to bring the truck to a designated mechanic. It is your vehicle while you are leasing it, and it should be up to you where it will be serviced. This might be a red flag and could mean that the leasing company is trying to extort you.
The truth is there are a lot of things to think about when leasing a vehicle, so the best advice is to make sure you read the lease in its entirety and understand it before signing it.
A lot of unforeseen incidents can happen while out on the road. If you are in the business of towing or hauling vehicles for others, then you should look into ways of guaranteeing their safe passage while they are in your possession. Consider the acquisition of on-hook insurance for the fleet. This will protect your company’s finances in the event of an accident. It is meant to cover the repairs for any damage sustained by the client’s vehicle while in transit. Note that it is for your customer’s properties and not your own, which are presumably already covered by other forms of insurance.
Types of Damage
Vehicular damage can happen despite multiple safety measures. After all, we cannot control everything once we go out into the world. The cars being transported may be harmed by a collision with another vehicle. Dents and scratches may result from these collisions to varying degrees. The company is responsible for fixing these problems since they were obtained while they were in-charge. Theft is another common issue. Valuable parts may be removed if security precautions are inadequate. Vandalism may become a problem if passing through rough neighborhoods. In rare cases, fire and explosion may ensue. These are all covered by most on-hook towing insurance policies.
Limits and Deductibles
As with most policies, it is necessary to specify a limit and a deductible. Be careful when choosing the amounts for these as they have major consequences. The limit will be the highest possible amount that the insurance provider will pay per occurrence in case the vehicular cargo gets damaged. This should be high enough to cover most issues. The problem is that lofty limits come with expensive monthly payments. Find a good balance that works for the business. Meanwhile, the deductible is amount that you must pay from your own funds before the insurer helps with the balance.
Restrictions
If it often necessary for trucking companies to get liability insurance before they are allowed to acquire on-hook insurance. Present proof of this to your service provider for faster processing. All of the vehicles on the fleet that are being applied for coverage under the same policy must have equal limits. Remember that this is only applicable for businesses that are engaged in towing and trucking for hire. It covers the vehicles that are being hauled for clients. It is not applicable when transporting cars owned by your company. It cannot be counted upon when towing a vehicle with a mobile home or any other personal use.
An On Hook Insurance Example
A concrete example will be helpful at this point. Let’s say that a number of racing cars need to be transported from a pick-up point to the race track. Your company is called up to perform the task. This should be a straightforward affair. Your truck drives to the client’s location to pick up the cars, loading each one carefully onto the platform. These are then driven along the highway to get to the track on time. Unfortunately, a slick road makes it difficult to drive and the truck hits the side of the road. No one is hurt but the cargo has sustained some damage.
The insurance policy now gets activated. If you selected a $600 deductible, then you pay this amount towards the repairs first and the insurer takes care of the rest up to the designated limit. For instance, you might have chosen a limit of $20,000. If the scratches, dents, and other damages sustained fall below this amount, then you will not have to worry about paying anything more. However, if the issues require an outright replacement which costs more than this, then you will have to shoulder the rest of the bills.
Many types of materials ranging from biological hazards to nuclear waste are shipped across the nation daily. Though each cargo has the capacity to do serious harm, a large number of regulations exist so that the threat is kept to an absolute minimum. Shipping dangerous goods under the auspices of the United States Department of Transportation keeps all hazmat transports regulated by federal code, dictating that the contents must be sealed and marked individually so as to provide the smallest element of risk to handler and shipper. This is done under the umbrella of seven separate classes of goods.
Explosives, the first class of dangerous goods, can be anything from TNT used for mining operations to ammunition and highly flammable goods. They must be marked according to their ability to cause damage, ranging from minor blast hazards like fireworks to extremely fire-sensitive materials like rocket fuel.
The second class are gases, substances that may be corrosive, poisonous, or flammable. Poisonous gases like chlorine are the easiest to transport, given that nothings short of extremely high pressure will puncture the hull. Flammable gases, conversely, are some of the most dangerous as they can be set alight with a single spark.
Flammable liquids are a separate entity given their capacity for boiling at certain temperatures. Simple gasoline can withstand temperatures of up to one hundred fifty degrees, while carbon sulfide must be kept at a much lower temperature.
Flammable solids are much rarer than liquids, as they are rarely used for fuel. Some solids, like calcium, may react violently with water and must be kept away from moisture at all costs. Others can ignite spontaneously like white phosphorus; still others like spent nuclear fuel can catch fire without producing flame.
Organic peroxides like potassium permanganate and ammonium nitrate are capable of quickly killing any material they come in contact with and must be kept sterile at all times.
Any infectious substances, such as virus specimens or used needles, must be shipping according to World Health Organization standards rather than American regulations, given that any potential spread of the infection could affect other nations.
Radioactive substances, usually uranium or plutonium, will emit radiation during their transport and must be sealed in lead, then transferred immediately to a safe storage location.
Corrosive materials that can quickly erode metal or human tissue, like hydrochloric acid, are relatively safer to transport given that they can be exposed to air.
There’s no question that truckers keep things running. Without truckers, the entire infrastructure as we know it would collapse. Imagine stores with empty shelves, food shortages, hospitals without the medications and supplies they need to treat patients, schools without food for students and other scenarios that seem impossible to fathom. Unfortunately, these unthinkable scenarios are not only very possible, if the current truck driver shortage is not solved soon, they are probable.
Although there are an estimated 3 million truckers who keep America running, the trucking industry reported a loss of more than 48,000 drivers in 2015. A large portion of these lost drivers retired after years driving big rigs across America. The current driver shortage is attributed not only to the loss of retiring drivers, but also to the extremely high turn over rate of newly licensed drivers.
Citing long hours, too much time away from home, lower than expected wages and impossible to meet time frames for deliveries, many of the newest drivers end up quitting before even completing their first year. Other drivers jump from trucking company to trucking company in search of better hours, higher pay and other benefits leaving their former employers in a lurch and facing a shortage.
The trucking education industry, however, is booming and turning out licensed, knowledgeable drivers at a very high rate. School across the country enroll and graduate new drivers almost every day, so why is that there is a driver shortage and what can be done to solve it?
While the answer to why a driver left the road is often different for each individual, the most commonly cited reason is low pay. In reality, there is not so much a driver shortage as a pay shortage. Drivers do not feel adequately compensated for the time they spend away from their families and the quality of life they endure while on the road. Living in a small truck cab, no matter how tricked out it is, takes a toll on a driver’s mental and physical health. Having to eat truck stop food, shower in communal bathrooms at truck stops and being confined in a small space for hours on end, day after day, are working conditions many drivers are unwilling to endure if they feel their pay is not commensurate with their work demands and conditions.
Not only do many drivers feel that life on the road is difficult, they do not feel appreciated or valued by their employers. Most trucking companies pay their drivers by the mile. This means time spent sitting in traffic, waiting at loading docks, weighing in at weigh stations and time spent in other delays is unpaid time. When drivers add up the time they actually spend on the road, away from home and family, versus the pay they receive, their pay rate often comes up very short. For many drivers, the paycheck they get is not in line with the actual time they spent working and it is simply not financially worth it to them to be away from home for the check they get. Why would a driver elect to be away from home, sleep and work in a cramped cab, eat sub-par food and deal with all the hassles and aggravation of a life on the road if there is no financial incentive to make it worth it? They wouldn’t and they don’t, ergo the driver shortage.
Solving the driver shortage is going to take major initiative on the part of the trucking companies who employee drivers. Companies are going to have to offer real financial incentives to drivers in order to keep them. Reconfiguring the way drivers are paid to compensate them for their full time on the road, not just the miles they cover, would be a good first step.
Additionally, new legislation requires drivers to electronically record the hours they log in an effort to combat fatigue. However, these laws slow truckers down and cut into the time they spend driving, accruing mileage and earning pay. If they want to keep drivers, trucking companies are going to have to find a way to compensate drivers for the time they spend complying with transportation laws in addition to the compensation they receive for miles covered.
Another way trucking companies can correct the driver shortage is by offering more benefits and recognition to their drivers. Many drivers feel unappreciated, undervalued and completely replaceable by their companies. Offering bonuses, paid vacations and pay raises for drivers who stay with the company are smart ways to incentivize drivers to keep on trucking.
Solving the driver shortage is the way to keep our current infrastructure up and running. Without drivers, almost everything we use on a daily basis will soon be in short supply. It’s time for trucking companies to share their profits with their drivers and keep them on the road.
Shipping food can be hard work. Many individuals do so around the holidays, shipping easy dry food. However, the lessons learned during this kind of shipping are not applicable to those situations in which one wants to ship something more substantial. Shipping frozen food is actually more a difficult process than some might realize, and it does take careful preparation. You must not only buy the right materials for the shipping process, but you must also invest in the right container. Even after this is done, you will be racing against the clock to make sure that your precious cargo does not thaw out before it can be delivered.
Prep Work
Shipping frozen food requires a bit more thought than throwing a frozen pizza in the mailbox and hoping for the best. If you actually want to ship something that is frozen, you are going to have to do a bit of prep work. The most important preparation note is that you must use dry ice to pack frozen food. It is the only thing that can guarantee that your food stays frozen for any length of time, and it will not turn your container into a soggy mess. Since you are using dry ice, you will also have to invest in plastic wrap for your food. After all, you want to make sure that your food will not come into contact with the ice.
Packing
Packing is a fairly important part of the process. You want a urethane container that is at least two inches thick for the best results, though some rely on duct tape and Styrofoam coolers to do the job. As a rule, you will use about five to ten pounds of dry ice for every day you need the food to stay frozen. Always make sure to pack the food and ice tightly, and fill in any extra space with wrap or plastic peanuts. Empty space in the container can cause your dry ice to warm, thus defeating the purpose of using the substance.
Shipping
Speed is the key for shipping frozen food. You should always pay extra for overnight shipping, as even a great packing job is not likely to last for more than two days. This can be quite expensive, and it is usually best to go through a private shipper rather than the post office. Costs vary by region and by weight, and every extra ounce is likely to cost you a bit more money.
If you absolutely have to ship frozen food, it can be done. It is an expensive process, though, and there are many mistakes that can be made along the way. If you use the right materials and pack correctly, though, you can get the food shipped out quickly. It should be thawed out upon arrival, and you should always ask for some kind of return receipt. After all, you want to make sure that no one decided to have a snack when they were out delivering your parcel.
Shipping container dimensions have been standardized, so they do not vary from one market to another, or from country to country. This is because they are made to international standards, making cross-border trade much easier. Containers can also be interchanged by shipping, rail and truck companies easily without having to make any adjustments whatsoever. The following are standard shipping container dimensions.
External Container Dimensions
The standard lengths of shipping containers are 10 feet, 20 feet, 30 feet and 40 feet. These containers have a standard external width of 8 feet. The height for standard containers is 8’6″ while High Cube containers have a height of 9’6″.
Internal Container Dimensions
Since containers are made from thick metal, the internal measurements are normally a little bit smaller than external measurements. The internal dimensions for the 10, 20, 30 and 40 feet containers are reduced to 9’2″, 19’3″, 29’4″ and 39’4″ respectively. The internal widths are also reduced to 7’7″. The internal height for standard containers is also reduced to 7’9″, while that of High Cube containers is reduced to 8’9″.
Carrying Capacity
Standard containers can carry 560, 1160,1760 and 2360 cubic feet of goods respectively in the 10, 20, 30 and 40 foot containers.
Companies that manufacture shipping containers have to adhere to these standards regardless of the type of materials they are using. Containers are designed to offer maximum carrying capacity while ensuring maximum stability of the road, bearing in mind the fact that traffic and trucking rules differ from country to another. Standard dimensions also make it easier for shipping companies to stack up the containers in their ships and shipping yards. After making a container, manufacturers are required to give each container a unique identification number.
It is important to note that refrigerated and insulated shipping containers have smaller internal measurements. They are also much heavier.
Types of Shipping Containers
The following is a list of standard shipping containers commonly used in the trucking industry.
– Flat rack
– Half height
– Open side
– Open end
– Standard
– Modular
– Liquid build (tank), and
– Refrigerated containers
Container shipping services are very important in the global trade. They must be used whenever individuals or corporations need to import items into the country. Using standardized containers makes loading, transportation, unloading and storage very easy. When you want to transport something, it is important that you consult a shipping company to come up with the best shipping solution.
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.
