Owner Operator Insurance – 10 Things You Should be Aware of!

Owner Operator Insurance – Trucking is a highly risky as well as extremely rewarding line of business. This is why many truckers dream of starting their own business and making great bucks.

But before jumping into this money pit, you need to consider a few important things which we will uncover in this post. Let’s dive in!

Whether you are planning to become an owner operator or already one, being your own boss is fulfilling.

But this role comes with great responsibilities and errands that need to be done on a daily basis.

You cannot fall short on any chore that works towards your business’s success. From buying the best fleet of vehicles to protecting it with the finest owner operator insurance.

There are a lot of things that you check off when you carry a trucking business, especially when it comes to buying insurance for your fleets.

As an owner operator, you need to be aware of certain things that matter a lot in a truck policy.

Things to consider when buying owner operator insurance

Getting adequate commercial truck insurance for your company is the first thing you require to operate legally on the road.

Many of you must be thinking why do you need this policy in the first place? Some may feel that it is an unnecessary business expense.

But you should know the importance of this coverage. First, having truck insurance is not optional and secondly, it is a necessity that protects your trucking business against lawsuits and other damages.

Not only it protects your fleets from a number of possibilities on the road but offers peace of mind. Additionally, if you take cargo insurance, you will ensure the safety of your freight as well.

A policy like primary liability is state-mandated and safeguards other people on the road against property damages and physical injuries in an accident. However, it only safeguards the third party.  What about you, your business, and your drivers?

You need to take additional coverage along with this mandated coverage to comprehensively protect your business from likely risks.

Here are a few vital points to consider before purchasing owner Operator insurance.

1. The type of policy you need

The first thing to consider before buying owner operator insurance is analyzing the type of coverage you actually need.

For this, look at the type of truck you own and check for a reliable insurance provider that assists in getting the right coverage for your vehicle.

If your truck needs specialized coverages they will customize the policy according to your unique requirements.

2. Purchase from a credible insurer

When you hunt for buying owner operator insurance, you will find countless insurance agencies selling it. All claim to be the best of the rest.

But you need to choose an insurer who has experience in planning the coverage according to your needs and the type of truck you own.

Do the research and find out companies that are good at settling claims. After all, the whole point of buying insurance is to get paid off at the time of need right?

3. Check the insurer’s financial strength

The most important assessing factor before purchasing a truck policy from a company is knowing its financial strength.

You should look at the insurance company’s history and the rate of claim settlements.

A company with good financial strength pays off its clients without giving headaches to them.

4. Read out the policy ‘cautiously’

Whenever you buy owner operator insurance, consider reading each inclusion and exclusion carefully.

Go through the entire policy and check other vital details.

This will help you stay on the same page as your insurer. If you feel that something is doubtful, feel free to ask them because you are putting up your hard-earned money on buying insurance for your truck.

5. Put the right driver behind the steering

Your drivers are not only responsible for moving cargo but also impact the rate of owner operator insurance.

So, before hiring drivers, consider thoroughly checking their past driving records.

Involvement in accidents, traffic violations, age, and experience of the driver influences the rate of truck insurance. Therefore, hire a driver with clean trucking experience.

6. Opt for auto deduction

Owner operator insurance offers protection and peace of mind only if you do it correctly.

If you skip any monthly premium then it can lead to breaking the clause and of course the coverage. Handling the trucking business is not easy, you need to dedicate ample time to it.

This occupancy might let you forget to make the payment on time. To avoid such a situation, opt for auto deductions for your making timely premium payments.

7. Shop around

Whenever you start looking for owner operator insurance providers near you, consider shopping around. Settling and accepting the very first offer can turn out to be an expensive mistake.

Because some carriers charge extra money for truck coverage. If you shop around a little, you will find the best deal available in your state for sure!

8. Reputation is worth considering

The reputation of the insurance company you are partnering with is more than important. You must have friends and acquaintances in the industry, ask them which insurer has decent goodwill.

Check their feedback and testimonials to get a better idea about the insurer.

9. Don’t fall for cheap

Undoubtedly, the cost is an imperative factor when buying a truck policy. But don’t just get swayed away by the cheapest rate offered as you might end up paying more in the end.

Go with a reasonable price that covers you decently. Affordable is good but gauge other factors as well.

10. Ask questions

Don’t jump to conclusions without asking all the questions you have in your mind. Make sure that the insurer answers all your queries.

Sum up

As an owner operator, protecting your investment and the interest of other people on the road is one of your prime responsibilities.

Wherever you go for a commercial truck insurance policy hunt, consider all the aforementioned points.

Connect with a reliable insurance provider. They will guide you in crafting a policy that works better and help you bear the financial trouble that comes with an unforeseen incident.

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