There is a good reason why the law requires every commercial vehicle owner to secure the minimum amount of liability insurance when purchasing any type of vehicle for either commercial or private purposes. And there are good reasons why trucking business insurance policies are priced at a slightly higher rate than regular auto insurance.
First of all, trucking insurance serves as protection from other drivers in the event of an accident or a mishap and to protect the insured driver from expenses he might not be able to cover in a short notice, such as hospital bills.
How Much Insurance is Necessary?
For trucking firms, trucking insurance brokers always suggest that they purchase maximum coverage insurance packages due to the nature of their work. Commercial trucks and drivers rely on the road for conducting business. So, since they spend most of their time on the road, in comparison to drivers who occupy the roads for reasons other than business purposes, they are at a much higher risk for things to go wrong. Therefore, it is important to know the type of coverage you need as well as all the risks involved when requesting a trucking insurance quote. This will help you in determining if your insurance is fairly priced for the coverage you receive.
Failure to Show Proof of Insurance
But what happens if a commercial truck driver cannot show a proof of insurance in the event of an accident? If the driver fails to show proof of proper insurance at the time of an accident, he may have his driver’s license suspended or revoked. In some states, the government will also charge the offender a fine. This fine can be anywhere from $500 to $5,000. Commercial trucks that do not carry trucking business insurance may also get impounded, which can be costly.
A commercial truck that operates without the proper insurance, suggested by trucking insurance brokers, may also be deemed “out-of-service” by the FMCSA, disallowing the specific vehicle to operate for a certain period of time. In the world of trucking, one day of immobility could mean huge profit losses.