Whether you are working as an independent driver or own a trucking company, it’s crucial to know the right type of truck insurance required. In most cases, the truck coverage for employees from the company will provide coverage if there is a collision while hauling the dispatch.
However, self-protection coverage is required if you are transporting off-duty or you are not under dispatch duty. There may also be a chance to haul without the trailer.
The protection plan to protect the truck when you are using the commercial vehicle for non-business purposes is non-trucking insurance. Sometimes, people mix up this term with bobtail insurance, but these two insurance terms are different.
We will discuss this too along with all the details of non-trucking insurance.
So, continue to read!
What Is Non-Trucking Liability Insurance?
Non-trucking liability insurance, also known as NTL, is designed to protect cases where one is using a commercial truck for non-business purposes or personal uses.
In such situations, if an accident occurs, your normal trucking liability insurance policy won’t work. You won’t be able to file a commercial truck insurance claim unless you have non-trucking insurance.
Personal uses or non-business purposes include:
- Taking the vehicle for groceries or any personal shopping use.
- Going to pick friends or family.
- After delivering, going out to eat, etc.
There may not be a chance you’ll think of using the commercial vehicle for personal usage, but unexpected things may occur at times. So better be prepared in advance.
Generally, the trip home after delivering the cargo is covered under general insurance. But some situations may alter this. Like, if a trucker changes the route because of some personal work, or visiting a friend on the route to home.
As you have read what non-trucking insurance is, let’s understand who needs it!
When Will You Need Non-Trucking Insurance?
Most motor transporters with owners or operators that contract a lead agreement need non-trucking insurance. With such an agreement, the carrier gets relief from any sort of financial burden while the driver or trucker is using the truck off-duty.
Some Cases Where One Needs Non-Trucking Liability Insurance Are:
- When one drives the truck for non-business purposes.
- When you want to avoid high expenses or sudden financial burdens as an outcome of an accident.
- When the motor bearer requires the insurance in a written agreement.
If you are wondering if Non-trucking insurance sounds the same as Bobtail insurance, you are mistaken.
Let’s clear up this confusion!
How Is This Liability Different From Bobtail Insurance?
The Bobtail insurance coverage protects trucks that operate without trailers called bobtailing. Bobtail insurance covers the vehicle only when it is operated without connecting the trailer, whether the truck is being dispatched or not.
On the other hand, Non-trucking liability insurance covers the truck in the event of an accident involving a commercial vehicle when it is off-duty. The coverage is applicable on a vehicle with or without a trailer. It will cover damage to the property or bodily injury.
What Is Offered In A Non-Trucking Liability Insurance?
As we have discussed where Non-trucking coverage is helpful, now let’s read about the types of Non-trucking insurance that a truck business owner can get:
Bodily Injury Liability Coverage
It covers the other driver’s medical expenses if your driver is at fault in an accident.
Property Damage Liability Coverage
If you or any of your workers on the truck cause damage to another’s property, this policy will cover all the damages.
Uninsured/Underinsured Motorist Coverage
It helps to cover the other driver’s expenses who don’t have a protection plan or enough insurance to cover all the expenses when they are involved in an accident.
Medical Payments Coverage
This policy will assist you in paying the medical bills for your employee after an accident.
Personal Injury Protection (Pip) Coverage
Such coverage helps in covering the expenses of an accident, whoever is at fault.
Like semi-truck insurance, non-trucking insurance has the same kind of coverage available under commercial truck insurance policies. But non-trucking liability comes into the role only when you drive the commercial vehicle for non-commercial work. On the other hand, other general policies like semi-trucks cover the vehicle when it is working for business purposes.
What Is Not Covered In Non-Trucking Insurance And When?
Not all the odd hours of personal driving time in your truck are covered by such policy as already discussed. Like, non-trucking insurance excludes:
- When you are driving between two workplaces.
- When you are driving without a trailer attached. (Bobtailing)
- When you are taking the truck to the repair shop for maintenance or repair work.
- After completing the duty, when driving to a place to rest.
When Can You Claim For A Non-Trucking Insurance Policy?
This liability insurance can protect the commercial vehicle in several situations in terms of injury and property damage while you are driving off the clock. Some of them include:
- You are driving from a restaurant to eat something or to a restaurant.
- After loading, instead of delivering, you are going to a rest place.
- After unloading and completing your work, you are driving to a rest stop.
- When you are driving home.
- When you are driving with your kids, take them to and from activities.
- When you are using the truck for family outings.
- When you are hauling personal items after duty hours.
If you do any of the above things in your truck, you should take a non-trucking insurance policy in advance.
How To Choose The Right Non-Trucking Insurance For You?
Getting the correct commercial truck insurance means protecting your assets, like, truck, cargo, and employees. So, it includes a complete process from monitoring the business needs to understand the basics of all the truck policies.
Try to follow the given suggestions to get the right non-trucking insurance for your business.
Know The Factors That Can Affect The Insurance Cost In Detail
Ignoring all the factors involved in any truck insurance can put you in a difficult situation at the time of need. As per different coverage plans, various factors can increase the overall truck insurance cost.
Let’s read what those factors are.
CDL Or Commercial Driver’s License
You should know about a commercial driver’s license to crack a good deal for your truck insurance. For example, insurers require that you hire a driver with a minimum of three years of experience and also the updated licenses that should work for the State in which you do your business. It will be difficult for drivers having less than three years of experience to get covered.
Years Of Experience In The Field
Calculating years of experience is another factor that the insurance provider can check for. Most good insurers deny giving insurance coverage to inexperienced persons. However, you can always have a company to provide coverage for rookies. But don’t follow this path as having less experience can make you pay a hefty amount in the end.
Clean Driving History
Hiring a driver with a good driving record is essential. Insurance providers will review the driver’s physical training records and maintenance logs, etc. They could also check for specific markings and features like halogen headlights or deer guards, etc.
The Down Payment
The last but important factor in deciding the value of an insurance plan is the down payment. The insurer may lower the price if you give the entire premium in advance. The complete payment in advance can be pricey firstly, but it ends up being less expensive overall.
Understand What This Coverage Is All About
No matter what kind of insurance coverage you are opting for, you should understand everything related to it. You could have numerous options available to you, so avoid making rash decisions in a hurry. Instead, understand what any coverage is about.
Being a truck owner, you will need the appropriate truck insurance at the correct time as per the business needs. You can consult an insurance professional before deciding on one.
Deeply Know What Your Insurance Provider Is Providing
There are many truck insurance providers to choose from. So, it’s important to be aware of all the ifs and buts before you visit the first insurer. You should ask them what they are offering and what not. Generally, your insurance plan couldn’t pay you for the expenses if an accident occurs while returning home after unloading.
You should make sure that the coverage you are opting for should fulfill your business requirements. Insufficient coverage may affect your pocket without even fulfilling your needs and restrict your capacity to do certain types of hauling.
Know Your Deductibles
Another one of the most important factors to consider while opting for the correct coverage is knowing the deductibles. Deductibles are the amount that you are bound to pay for an individual policy. This amount is subtracted from the amount that your insurer gives in a claim when any natural calamity affects your truck or when you find the truck is involved in an accident.
You can change the deductible in certain situations. So, you should pay proper attention to any charges linked with changing policy.
Pay Attention To The Claim Settlement Ratio
You should carefully examine the claim settlement ratio point. Many truck owners fail to do so. While opting for any commercial truck insurance for your business, whether it is a non-trucking liability or general liability, you should be aware of this point. You should know how the insurer handles the claim setting situation for whom you are opting. There are two significant reasons for the settlement percentage:
Check The Reliability Of The Insurance
Getting your truck insured is a costly task in any business. In terms of making your coverage profitable, you must take a significant amount of money over a considerable period.
If the refund request for any claim is refused or put on hold for some time, it may harm business operations badly and the financial strategy of the company too. You can check the reliability of the insurance by examining the settlement ratio. The coverage is good for you if you find the ratio between 90 to 95 percent.
Gives You Assurance About Financial Stability
Claim settlement ratio is important to keep an eye on to give financial security to the business. You must make sure that the years of effort you put into your business do not go in vain. When opting for any truck insurance, the settlement ratio could help you select thoughtfully.
What Is The Cost Of Non-Trucking Insurance?
Insurance providers look at many factors when deciding on non-trucking insurance rates for you. Some of the factors that may affect your non-trucking liability insurance cost:
- The location where the truck is being driven.
- The related industry for trucks is being used.
- Which type of truck is to be covered under the policy?
- The driving record of the driver.
- Which type of load is being carried?
Better late than never!
Non-trucking liability policy offers a great wall of protection without interfering with the activities because you never know when one can use the truck for non-business purposes. It relieves your stress of financial burden.
But having only half of the knowledge can be harmful, that’s why we discussed everything in detail. Non-trucking insurance policy requires a good amount of funds, so don’t make any decision in a hurry. You should learn everything related to policy, like, details, price structures, expiration date, settlement ratio, etc.
Once you have done all this, you are good to go to protect your trucking business in every term.
Hope you find all the answers you were looking for in this blog!
If you still have any doubts in mind, feel free to ask in the comments section below. We will be happy to help you!