Are you someone who drives trucks and is thinking about buying a truck to start your own business? Or maybe you already own a truck and want to get permission to operate it independently?
There are some special, not easy to find, short-term truck insurance plans that can be really helpful for truckers. Knowing what to ask for and how it fits into your business can make your life easier.
This short-term insurance plan gives truckers a special advantage. It’s a bit strict, but it’s the cheapest and most effective option in certain situations.
Understanding why you need short-term truck insurance
Temporary truck insurance is a kind of short-term insurance that protects new truck owners and operators for a limited time. Usually, the coverage lasts for 30 days. This is important because, during this time, you might not be allowed to do any commercial activities until you get permanent insurance. This is often because of a dispatch order, which says you can’t carry out commercial activities until you have proper insurance.
What’s important for you, as a buyer, is to find an insurance provider who can give you good advice and information about short-term truck insurance as a practical choice. Look for an agile truck insurance company that aims to provide quick solutions to make your job faster and easier.
Using short-term truck insurance
This policy doesn’t let you do any business activities if you are under a dispatch order, have a load on your truck, are moving cargo for hire, or for yourself, and/or for a private carrier.
The temporary policy gives you credible insurance coverage to legally move your truck on the roads according to rules from the DOT, Federal Motor Carrier Safety Administration (FMCSA), lien-holder, or loss-payee, which can be a financial organization or an individual.
For example, before you have permanent insurance, you might need to travel across the country for truck-related things like purchases, maintenance, repairs, and more. Short-term insurance is well-known in the transportation industry and is a one-time convenience policy.
Different kinds of trucks can be protected by Short-Term Trucking Insurance
Short-term truck insurance can protect different kinds of trucks used for business. Some examples include:
- Big trucks with trailers (Tractor-trailers)
- Trucks with a big box for carrying things (Box trucks)
- Trucks for hauling and dumping materials (Dump trucks)
- Trucks used for towing other vehicles (Tow trucks)
- Trucks with a rotating drum for mixing cement (Cement mixers)
- Large trucks used for transporting goods (Semis)
- Extra-long trucks
- Trucks with an open area for carrying things (Pickup trucks)
Basically, almost any type of truck can have this insurance coverage.
How Much Does Short-Term Truck Insurance Cost?
Short-term truck insurance doesn’t last for a long time, so it’s not too expensive to get.
The cost of this insurance depends on a few things, like:
- How long you want the insurance for (24 hours, 30 days, etc.)
- Where you are
- What kind of coverage you need
Many insurance companies make short-term insurance active right away when you buy it. Here’s an example of how much it might cost:
- $140 for 24 hours of coverage
- $240 for 48 hours of coverage
- $340 for 72 hours of coverage
- $440 for 96 hours of coverage
- $540 for a 5-day policy
When you buy this type of insurance, make sure it meets the minimum requirements set by your state. If you’re getting a new truck as an owner-operator or planning to sign a lease agreement, you’ll need short-term truck insurance.
This temporary insurance gives you liability protection while you drive your truck to the terminal or another place before you start transporting goods.
Advantages of Short-Term Truck Insurance
Getting short-term truck insurance has some benefits for you as a truck driver. It gives you a reliable commercial policy, allowing you to legally drive your truck on the road. This is in line with the rules for drive-away services.
With this insurance, you get various services like stripping, repairs, lettering, and post-market applications. It provides the same benefits as long-term truck insurance but for a shorter period.
Short-term coverage is a good starting point if you eventually plan to get long-term truck insurance. The advantage of this insurance is that it is well-recognized, allowing you to freely drive your commercial truck within the specified time.
Reasons to Get Temporary Truck Insurance
When you’re just starting as a trucker, it’s hard to predict what might happen to your truck. It could get damaged while parked or be involved in an accident. Short-term truck insurance is helpful in such situations. Here are some reasons to consider it:
- Immediate Coverage: You can quickly buy coverage online, making it legal for you to drive your truck immediately.
- Flexible Terms: You can choose how long you want to be covered. If you change your mind, you can extend or get new temporary insurance.
- Full Insurance Coverage: You can choose to get only liability insurance or add more coverage to protect your truck.
- Cost Savings: Temporary insurance lets you compare long-term coverage options, helping you find the best deal by collecting quotes from different companies.
Disadvantages of Short-Term Truck Insurance
While there are advantages, there are also some downsides to short-term truck insurance:
- Limited Coverage: It only covers incidents mentioned in the contract.
- Deductibles: The policy documents will specify deductibles.
- Exclusions: Breakdowns due to electrical or mechanical failure are not covered.
- Geographical Limits: Claims outside the defined geographical area are not covered.
- Specific Exclusions: Claims due to radiation, nuclear hazards, or related damage are not covered.
- Driver Limitations: If someone other than the insured driver is driving during an accident, there is no coverage.
Cost Factors in Short-Term Insurance
The short-term truck insurance market is growing, with various services available. However, many companies offer products labeled as “short-term” that are around 12 months long. Short-haul insurance covers vehicle damage and personal injury protection.
Factors affecting short-term insurance prices include:
- Coverage and Term
- Deductibles
- Liability Insurance Limits
- Payment Plan
Which state has cheapest commercial truck insurance?
Mississippi
What You Would Pay for Truck Insurance in US’ Cheapest State. Among all 50 states, owner-operators in Mississippi pay the LOWEST commercial trucking insurance rates.
What is bobtail insurance?
Bobtail liability is the term coined to apply to auto liability coverage for an owner/operator after a load has been delivered and while the truck is not being used for trucking purposes.
How many types of cargo insurance are there?
Broadly there are two types of insurance – land cargo and marine insurance. Land cargo insurance is for the cargo which uses the road as its mode of transportation (Inland movement) and is usually moved in trucks and other utility vehicles.
Final Post Wrap
In conclusion, short-term truck insurance is a valuable and cost-effective solution for truck drivers and owners. With its relatively low cost and immediate activation, it provides essential coverage for a temporary period, allowing flexibility in terms of duration and specific needs.
Whether you’re purchasing a new truck, signing a lease agreement, or engaging in other short-term activities, this type of insurance ensures that you meet the necessary legal requirements and protect yourself on the road.
