If you’re a commercial truck driver who’s thinking about buying your own truck and acquiring an owner-operator status, temporary truck insurance is something that you’ll need to purchase as well. This is a special type of auto insurance that only lasts for a 30-day period. It is designed to give truckers the time to consider their options in long-term coverage even as they keep their new assets and themselves protected. Following is everything you need to know about this short-term coverage including how to get it.
You Can’t Commercialize Your Fleet With This Short-Term Cover
With temporary truck insurance, your new truck will need to remain out of official operations until you’ve been able to bind permanent insurance. This policy is only meant to protect you against a limited range of risks and damages during the coverage term. There is always a special stipulation written into these policies stating that fleets cannot be commercialized in any way until they are otherwise protected.
How Can A Temporary Policy Benefit You?
By binding a temporary truck insurance policy immediately after you’ve purchased your new commercial truck, you’ll be getting a reliable cover that allows you to safely and legally move your power unit on the public roads. Many drivers also consider these policies to be an excellent move towards obtaining more permanent cover. Through the duration of this plan, you can enjoy things like post-market applications, repairs, stripping services, lettering and more. You’ll basically get all of the provisions that are available to more permanent policyholders apart from your inability to commercialize your vehicle.
Temporary Truck Insurance Is Often Universally Accepted
When you work with a reputable insurer, you can bind coverage that is universally accepted. This means that rather than having to keep your new truck parked, you can drive it freely on public roads throughout the 30-day period. A lot of new truck owners find it incredibly difficult to take their vehicles out ahead of binding permanent coverage.
Peace Of Mind
One of the greatest and most obvious benefits in binding short-term coverage for your truck is greatly increased peace of mind. Even though you won’t be actively using this vehicle as part of your commercial operations, you will still need to move it around in order to get it from the point of purchase to your business, make the truck ready for the necessary work, and engage in other preparatory activities. With a good policy, you will have extensive protection against all short-term damages. Whether remodeling your truck, looking for a recruiter or simply driving it to your yard, you won’t have to worry about accidental collisions, property damages, physical injuries or the costs of hospitalization. The sole limitation to plans like these is that you won’t be able to participate in any aspect of commercial freight business until your truck is permanently and properly covered by a long-term, commercial plan.
What You Can And Cannot Do With Temporary Truck Insurance
Once you’ve purchased your new truck, you probably won’t be financially able to manage the ongoing costs of a permanent policy until you’ve lined up regular work. Truck drivers who are trying to get their own businesses off the ground are usually walking a very delicate line in their efforts to minimize their start-up costs and make sure that everything is done legally. With temporary truck insurance, you can never move a load under dispatch order. Moreover, your truck cannot be laden as per a bill of lading. With these policies, you are also prohibited from moving any cargo for cash, whether for yourself or any other third-party. The sole goal of these policies is to keep your truck protected from the time that you buy it until the time that you are able to line up sufficient work for justifying the costs of a permanent cover.
Once this coverage is bound, any non-commercial movement and activities that you engage in with your vehicle will be fully compliant with FMSCA, DOT, and the stipulations of any loss-payee or lien-holder. Also known as drive-away coverage, this plan will eliminate any fears that you have of losing your new asset in a freak accident or of facing devastation due to an expensive and unforeseen liability issue.
Don’t Be Fooled By Non-Trucking Liability Insurance Plans
One very common mistake among new commercial truck owners is assuming that non-trucking liability coverage is sufficient protection for all activities so long as vehicles are never commercialized. Sometimes referred to as a Bobtail policy, this plan will never cover any claims arising from events that happen before a contract has been executed for permanent coverage. Thus, if anything should happen to your truck or as the result of your truck while you look for work, work on your vehicle, or transport it back to your home or yard, this plan will not cover any of the resulting damages.
How To Get Temporary Truck Insurance
You can find the right temporary truck insurance for your circumstances, budget, and needs at ratemytruckinsurance.com. Once you’ve got a reliable, short-term cover in place, you can safely and legally bring your vehicle home and start shopping around for a recruiter. The most important point to bear in mind, however, is that you cannot carry or deliver any type of freight until a permanent plan has been bound.