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Understanding the importance of commercial truck insurance

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The use of commercial vehicles everywhere has increased dramatically over the past decade. With an increase in both truck-based freight delivery and business owners operating their own trucks to transport goods, there has also been a rise in the number of reported accidents involving these vehicles. Here we will understand the importance of commercial truck insurance and what it is:

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What is commercial truck insurance?

In some countries, primarily those with high traffic density and congestion, the government imposes heavy fines on people who do not have commercial truck insurance before they can be allowed to drive their trucks on public roads. The idea behind this approach of the governments is that if you are running a business on a large scale, it will mean a lot more money lost if an accident were to occur. This way, the owners of these trucks will be compelled to protect themselves from spending huge amounts of money on repairs or compensations towards affected parties.

In the United States, you can get this insurance depending on your state. If you live in Texas, you can get TX commercial trucking insurance and if you live somewhere else you can get the insurance according to that state. If commercial truck insurance requirements don’t exist in your country yet, you should consider bringing them about.

truck (©Rhys Moult)
truck (©Rhys Moult)

Types of commercial truck insurance 

There are two types of commercial truck insurance: compulsory and non-comprehensive. Compulsory cover is a must, as it will compensate you for your loss in case of an accident. It also has some additional features that enhance the safety features of large trucks on public roads. On the other hand, non-comprehensive insurance is optional and focuses on covering any accidents not related to driving on public roads as well as theft or hijacking cases relating to these vehicles. In most countries, there is a legal minimum requirement for compulsory cover. However, you should always consider bringing non-comprehensive insurance as well to protect your business from any financial loss in case of an accident or theft related to trucks transporting goods.

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What you need to know about commercial truck insurance?

For starters, you should never drive a truck without commercial truck insurance. Apart from being illegal, if an accident occurs because of this, you will have spent all your money paying for severe damage to your vehicle and be left with no way to pay for any repairs or compensate anyone else involved in the accident or their property. You will also not be covered by insurance against claims made by others who were part of the accident and can sue you for damages and compensation and include other costs incurred due to their injury such as medical costs and time off work. 

Secondly, you should not be quick to purchase insurance from the first company who offers it. It is a common misconception that if a company offers commercial truck insurance, they will offer the best deal on the market. Make sure to compare different companies before making your decision, as some non-comprehensive options can actually end up costing more than they are worth. Also ensure that you know exactly what your vehicle needs as far as cover goes, as opting for optional features such as international coverage or covering damage due to war or terrorism can end up being very expensive if not provided by your current provider of choice.  

Finally, if you have a company that transports goods from place to place on a regular basis, it can be beneficial to take out commercial truck insurance for the drivers of your vehicles. This way you will not have to worry about compensating any other party in case they were involved in an accident with one of your drivers and your business will be protected at all times.

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Why is commercial truck insurance important?

Commercial truck insurance is significant because it’s the only way to protect both you and your business. How can a large company or organization function without any trucks? If an accident occurs, victims may sue you for cash reparations, not to mention that you will end up paying off all repairs out of pocket. Commercial truck insurance covers these costs, as well as ensuring that your business is protected at all times. Here is why you should get it right now.

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1. It protects you from lawsuits.

In case a collision occurs, you will need commercial truck insurance to protect against lawsuits. If the victim is injured in some way, they will need to seek some sort of compensation. They could sue you for medical expenses, lost wages due to time off work, or any number of other things. If you are confident that you are not at fault in the accident, then it doesn’t matter if they file a lawsuit against you — your insurance will cover all the costs associated with damages caused by the incident.

2. It protects you financially.

Commercial truck insurance will provide financial protection for your business, especially if it is large and has lots of vehicles. It can help you pay for the costs of repairing and replacing your vehicles, as well as any expenses that may occur as a result of an accident. The commercial truck insurance policy should cover these costs. If it’s not available, then your business could end up spending much more than what is necessary and such a situation would never be beneficial to you.

3. It covers damages to others’ property.

Commercial truck insurance also provides peace of mind in the sense that it will protect both other people’s property and yourself from damage resulting from an accident or collision caused by one of your employees. For example, if someone hits one of your company trucks and causes actual bodily harm to another person (or themselves), commercial truck insurance should cover all bills relating to the incident. This way, you won’t have to pay anything out of pocket for the medical bills — it will all be covered.

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Having a commercial truck insurance policy is the only way to ensure that you won’t end up paying for damages yourself, as well as protecting your business from expenses and losses caused by accidents. Even if you’re confident that you won’t be at fault in an accident, it’s still smart to have commercial truck insurance just in case.

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