Type of Insurance Do Owner Operators

If you’re a new owner operator, you may wonder: What type of insurance do I need? If your business is solely your own, you should consider getting auto liability insurance. Federal law requires at least $750,000 in liability coverage. Most shippers and freight brokers require even higher limits. It’s important to remember that less liability insurance won’t cover the financial consequences of a major accident. It’s important to discuss all available coverage options with your insurance provider.

In addition to your driving history, the insurance carrier will check your logbook and inspection records. They’ll also check on whether you’ve taken driver fitness tests and passed the hours-of-service requirement. They’ll also check to see if you have installed proper safety features and signage on your truck. You can negotiate a lower premium by making a down payment. However, remember that paying the full amount in one lump sum can put you in a financial bind.

While many variables influence the cost of insurance, a good way to lower your insurance cost is to lease-on with a motor carrier. Depending on your needs, you may need to buy additional policies, including bobtail insurance. If you choose this route, you’ll likely save fifty to seventy percent per year on insurance. If you’re still unsure, you can talk with a CoverWallet agent who specializes in Owner operator insurance .

What Type of Insurance Do Owner Operators Need?

When looking for owner-operators’ insurance, you’ll want to find one that suits your business and your budget. There are many factors to consider when deciding the right truck insurance. In addition to the cost, your insurance agent will also provide value-added services that you can use. All of these factors can help lower your premium. You can choose your coverage and pay according to your needs. While truck insurance can be expensive, it’s an essential operating expense.

While most leased owner-operators only need bobtail, non-trucking liability, and physical damage insurance, if you own authority over your vehicle, you may be required to carry primary liability insurance. The type of insurance you need depends on the type of loads and state licensing requirements. In general, you’ll need to obtain primary liability insurance for bodily injury and property damage. Additional coverage may include cargo insurance, which covers merchandise you haul, and trailer interchange insurance.

While leased owner-operators are covered by the trucking company’s primary liability insurance, it’s a good idea to consider obtaining additional coverage. Physical damage coverage, which covers damage to your trailer or tractor, is an additional line of coverage you may want to consider. The other coverage you may need is non-trucking liability coverage, which covers personal use of your vehicle. This type of coverage is often required by trucking companies.