Straight Truck Insurance
Straight Truck Insurance
A straight truck is a valuable asset to any business that needs to transport things. Whether you provide commercial moving services, sell retail furniture or transport goods and supplies for other companies, you rely on your truck to get the jobs done.
If your truck is in an auto accident, can you afford to pay for the repairs it may need? Will you be able to continue with your day-to-day business operations while it is down? Commercial auto insurance is designed to protect your company from financial hardships that arise when your trucks get damaged. A variety of different types of coverage options are available so that you can protect the truck from other hazards caused by the weather, hit and run drivers, and unexpected events. Here are the basic types of insurance you should carry on your company’s straight trucks:
- Liability Insurance – Liability insurance protects you from having to pay for repairs and medical bills when your truck is involved in an auto accident. Liability specifically protects you when the driver of your straight truck is at fault for the accident. If your truck is caught in bumper-to-bumper traffic for example, and accidentally collides with the back of another car, your liability insurance will cover the cost of damages to that car. Liability covers injuries to people as well as property damages, up to amounts you specify in your insurance policy.
- Bodily Injury – Bodily injury insurance is one of the two types of coverage a liability insurance policy provides you with. This insurance pays medical bills and related expenses for people who are injured in an auto accident that your straight truck driver caused. Your bodily injury coverage will pay for standard medical and emergency care treatment such as ambulance transport and emergency room treatments. It also pays for follow up visits to doctor’s and specialists, prescription medications, recovery and rehabilitation. Bodily injury can pay for funeral expenses when applicable, and it can also pay the injured party for pain and suffering or lost wages due to time off work.
- Property Damage – Property damage is the second part of a liability insurance policy. This section pays for the cost of repairs to damaged property. If your truck rear-ended another vehicle in traffic as in the example above for instance, the property damage portion of your commercial policy will pay for the repairs that car needs.
Liability insurance is structured as a split pay or combined single limit policy. A split limit policy places limits on how much of the policy benefits are paid to each aspect of the accident. It defines a maximum amount that is payable per person for individual bodily injuries, a maximum total amount of bodily injury benefits, and a maximum limit for paying property damages. A combined single limit policy pays up to one set maximum amount regardless of whether it is applied to bodily injuries or property damages.
For example, a split claim policy of $25,000/$50,000/$20,000 will not pay more than $25,000 for any single individual’s bodily injuries. It will not pay more than $50,000 for combined total of bodily injuries and it will pay no more than $20,000 for property damages. A single claim limit policy of $50,000 will pay no more than $50,000 for all costs associated with the accident.
When you set up your commercial liability insurance policy you will need to choose between split claim and single claim, and you will need to select a deductible. The deductible is an amount of money that you pay out of your company funds for an accident. A $500 deductible means that you will pay the first $500 of any claim. If there are expenses above that amount then your insurance policy will cover them.