Box Truck Insurance
Many businesses and independent truckers use a box truck to carry out their business operations. Moving companies, retail shipping companies, and couriers are examples of the kinds of businesses that use a box truck. Regardless of why your company uses box trucks, you need to be sure you have them fully protected with commercial auto insurance. Whether you are a private truck carrier or an independent trucker for hire, there are a number of important types of business auto insurance you should carry for your truck:
- Liability Insurance – Bodily injury coverage pays for the physical harm that comes to one or more people as a result of the auto accident. If your box truck causes and auto accident and people receive injuries in that accident, the bodily injury portion of your liability coverage will pay the medical bills and related expenses. Liability insurance comes with two important pieces:
- Bodily Injury – Bodily injury coverage pays for the expenses that arise when people get hurt in an auto accident. If your van is at fault for the accident and one or more people must be taken to the hospital for example, the bodily injury portion of your liability coverage will pay for the transport and hospitalization costs. Bodily injury insurance pays for standard medical care such as emergency room visits and prescription medications. It can also pay for the cost of a funeral if a person dies as a result of the accident. Bodily injury also pays for pain and suffering, lost wages due to time off work for recovery, and more.
- Property Damage – The property damage portion of your liability insurance policy pays for the repairs or replacement of property that was damaged in the auto accident. If your box truck totals another vehicle for example, the property damage section of your commercial insurance policy will pay for that vehicle’s replacement. Liability insurance is normally structured into a split or combined limit policy. Split limit policies set an upper limit on how much money will be paid for bodily injuries and property damages in an auto accident. For example, your insurance policy may be setup as a $25,000/$50,000/$30,000 split claim policy. This number represents the maximum amount of benefits the policy pays per individual for bodily injuries; the maximum amount of benefits for all bodily injuries total; and the maximum amount of benefits that will be paid for property damages. A single claim limit policy of $50,000 however, allows you to spend as much or as little of that total as you need on either bodily injuries or property damages.
Medical Payments – Medical payments insurance protects you and your company from having to pay the medical bills when your box truck is involved in an accident. This coverage applies to the driver of your truck and all passengers that were riding in the truck at the time the accident occurred. Medical payments coverage benefits are paid regardless of who was at fault for the accident. This commercial insurance option is not available in all areas. Talk to one of our licensed representatives to determine if this coverage is available to, and appropriate for, your company’s insurance needs.
Physical Damage Insurance – Physical damages insurance protects your box truck itself. If the truck is damaged or destroyed in an accident, your physical damages protection can cover the cost of repairs and replacement. There are three levels of protection available, and the one that you choose determines the extent of loss protection for your truck.
- Comprehensive Physical Damage Protection – Comprehensive damage protection is extremely important for any private carrier or independent trucker who does not own their box truck outright. If your truck is leased or you have an outstanding finance loan, comprehensive damage can provide you with the most loss protection possible. This insurance applies to damages that are not caused by collisions or roll-overs. If your vehicle is stolen for example, or struck by vandals, comprehensive damages takes care of the replacement and repairs.
- Collision Damage Protection – Collision damage protection takes care of the expenses when your truck is involved in a roll-over accident or collision with other objects. If your truck takes a tight turn that causes a tree limb to tear a gash in the side for example, the collision damage protection can pay for the repairs.
- Specified Peril (CAC) – Specified peril insurance also protects you from non-collision damages, but it is limit to only those that are specified on your policy. CAC is another name for specified peril coverage, and it stands for Fire and Theft with Combined Additional Coverage.
Uninsured or Underinsured Motorist – Despite auto insurance laws in most states, some people still drive without carrying basic liability coverage. Other people carry liability, but it is not enough coverage to fully pay for the full extent of damages they inflict in an auto accident.
An uninsured and underinsured motorist protects you from these hazards. If your box truck is involved in an auto accident and the other driver is at fault, that driver’s insurance is obligated to pay for the injuries and damages. If the driver is not insured or underinsured however, your uninsured/underinsured motorist policy will pay for them instead.
- Bodily Injury – As noted Above
- Property Damage – As noted above
- Collision Deductible Waiver (CDW) – If you carry uninsured/underinsured motorist bodily injury protection you can also qualify for a collision deductible waiver, or CDW. Normally, when you must make an auto insurance claim you are required to pay a deductible, or initial amount. When the accident is not your fault however, that deductible can be waived.
Other Important Commercial Auto Insurance For BOX TRUCK:
- Rental – If you must rent a replacement truck to conduct business operations while your truck is being repaired, your insurance policy can cover the cost of the rental.
- Towing – This coverage will protect you in case your auto is in accident or simply isn’t drivable and needs to be delivered to a mechanic shop for repair.
- Trailer – Trailer insurance protects you from the loss of and damages to your truck trailer itself.
- Trailer Interchange – When you participate in a trailer interchange service, you must protect the exchanged trailers separately since your company does not own them.
- Unattended Truck coverage – Stopping for food and rest on a long haul trip puts your truck at risk for theft, vandalism and other hazards. Protect it when it is unattended by adding unattended truck coverage.
- Cargo – Cargo insurance protects you from losses and damages to the cargo you’re hauling.
- Accessories – You carry expensive extra accessories and equipment in your truck that can be damaged or destroyed in an accident. Protect yourself from losing your GPS units, communications radios and other important accessories by adding this coverage to your commercial auto insurance policy.