Commercial truck insurance is often confused with other types of insurance policies as business owners aren’t aware of the differences in coverage. Much like a personal auto policy, commercial truck or car insurance is designed to guarantee an individual against liability or damage in case of an accident, but these types of coverage can also have restrictions, limits and exclusions that may differ from the typical personal policy. Consumers who buy commercial policies are often required by law to operate under this coverage because; they are using their vehicle to transport goods or conduct services for payment, there are higher liability risks due to the type of work they are performing, or if employees are operating a vehicle that is owned by a corporation or business.
Many consumers may think the distinction between commercial car and commercial truck insurance is simple, but there are differences that extend beyond merely the type of vehicles that are going to be covered. To decide which one is right for you, let’s examine the two types of policies.
Despite the name, commercial car insurance is actually blanket terminology for any type of small business auto insurance. This type of policy will often cover cars or trucks of any size up to large semi or eighteen-wheeler tractor-trailer types of trucks. Commercial car insurance policies offer many of the same coverages as the typical personal auto policy, such as bodily injury and property damage liability, uninsured and under-insured motorist, collision and comprehensive and medical expenses. However, with commercial insurance there are also coverages designed for multiple drivers on the same vehicle or fleet of vehicles and most commercial policies offer higher liability coverages that are unavailable for personal policyholders.
These types of policies are created to protect entire companies from loss and cover “big-rig” tractor trailer types of trucks, associated mostly with hauling large cargo across long distances. There a number of determining factors that are considered that can affect the costs of this type of insurance; driving record and age of the insured, the type cargo being hauled, the age of the equipment and as well as distances and location of the vehicle and the business.
Just like commercial car insurance, the types of coverages that are available cover damage and liability, but in the latter case, the liabilities extend beyond just the physical vehicle itself, mainly with a focus on insuring the driver behind the wheel, and the goods that are being hauled. Policyholders who purchase blanket general liability coverage are insured against any damage or injury that occurs outside of the truck itself. These usually refer to slip and fall accidents, or advertising and contractual issues involving the business and not the truck specifically. In addition, cargo insurance protects the policyholder from cargo loss or theft on the truck, usually with limitations, while terminal coverage and warehouse coverage protects cargo at specified terminals for up to 72 hours and covers any loss or damage at specific warehouses in the event of theft or fire/sprinkler damage.