In the United States, it can vary depending on factors such as the type of operation, the size and weight of the truck, and the specific state regulations. However, there are some common insurance coverages that most semi-trucks are required to have:
Liability Insurance: This is the most basic and mandatory coverage for all commercial vehicles, including semi-trucks. Liability insurance covers bodily injury and property damage that you may cause to others in an accident. Minimum coverage limits vary by state, so you’ll need to check your state’s requirements. Standard minimum limits are around $750,000 to $1 million for trucks over 10,000 pounds.
Cargo Insurance: If you’re transporting goods for others, you may be required to carry cargo insurance. The coverage amount will depend on the type of cargo you’re hauling and its value. Brokers or shippers often specify the amount of cargo insurance required.
Physical Damage Insurance: This coverage protects your truck against damage resulting from accidents, theft, vandalism, or other perils. While not always required by law, if you have a loan on your truck, the lender may require it. If you own the truck outright, you can choose whether to carry this coverage.
Uninsured/Underinsured Motorist Coverage: Some states require commercial vehicles to carry uninsured or underinsured motorist coverage to protect you if you’re involved in an accident with a driver who lacks sufficient insurance.
Medical Payments Coverage: This coverage pays for medical expenses for you and your passengers if you’re injured in an accident, regardless of who is at fault. It’s typically not required but can be beneficial.
Trailer Interchange Insurance: If you’re in the business of exchanging or leasing trailers with other trucking companies, you may need this coverage to protect against damage to the trailers you’re responsible for.
Bobtail Insurance: This coverage provides liability protection for your truck when it’s being driven without a trailer (bobtailing) and is not under dispatch. It’s often used by owner-operators during non-working hours.
Environmental/Pollution Liability Insurance: If you’re hauling hazardous materials, you may need this coverage to protect against environmental damage caused by spills or accidents.
Workers’ Compensation Insurance: If you have employees working for your trucking company, workers’ compensation insurance is typically required to cover injuries or illnesses they may sustain while on the job.
Downtime Insurance: This optional coverage can help cover expenses if your truck is out of commission due to an accident or covered loss.
Liability coverage is pretty easy to understand. If you are at fault for a car accident, it is your obligation to cover the other driver’s car repairs. If you have liability insurance, your insurance provider will pay these obligations on your behalf. If you have liability only, your car repair expenses and medical bills are not covered by your insurance company.
Liability coverage includes two sub-categories: bodily injury and property damage. In most states, having bodily injury liability insurance is a legal requirement. If you cause a car accident that results in someone else’s injury, this type of coverage can help pay for their medical bills and any loss of income caused by the injury. Additionally, it can cover legal fees if you are sued.
Property damage liability insurance is the second sub-category of liability coverage. It is similar to bodily injury coverage, but instead focuses on damage to other people’s property, such as their car or home. This coverage can help with the costs of repairing the damage.
If you’re involved in an accident, and the other driver is responsible but uninsured, you can file a claim with your insurer using your uninsured driver coverage. It’s important to note that this coverage has a limit and will only provide compensation up to that limit. Similarly, underinsured driver coverage can come into play when the at-fault driver has insurance but it doesn’t cover the entirety of the damages.
If you get into a car accident, personal injury insurance (also known as PIP or personal injury protection) can help cover your medical expenses and lost wages. This type of insurance is also called no-fault coverage because it pays out regardless of who caused the accident. With PIP, you can receive benefits even if you were at fault or if the other driver was. This insurance also covers the cost of replacing someone’s services if they were injured in the accident and rehabilitation and funeral costs.
If you are in an accident with another vehicle or object like a tree or fence, collision insurance will cover the repair or replacement of your vehicle. It also covers single vehicle accidents. However, it is important to note that it does not cover damages not related to driving, damages to another person’s vehicle, or any medical bills, regardless of whose they are. If you have a car loan or lease, you likely need collision coverage. If you own your car outright, the decision to carry collision insurance is up to you. Consider the cost of repairing or replacing your car in case of an accident when making this decision.
Comprehensive car insurance is the best option for maximum vehicle protection. It covers non-collision damages like theft, vandalism, natural disasters, and falling objects. If you own your vehicle, you can choose whether or not to carry comprehensive coverage. But if you have a lien or lease, it’s likely required.
If you get into a car accident, your auto insurance policy may include coverage for medical expenses. This coverage can pay for your hospital or doctor visits, surgery, x-rays, prostheses, ambulance, medical technician expenses, professional nursing services, and health insurance deductibles, regardless of who caused the accident. However, keep in mind that this coverage is optional and may not be available in all states.
In case your vehicle needs to be repaired after an insurance claim, Rental Reimbursement can help cover the cost of transportation. This coverage applies if you need to rent a car or take public transportation while your vehicle is being fixed. However, it does not apply for routine maintenance work or if you rent a vehicle for vacation. Remember that rental reimbursement only applies if your vehicle is involved in a covered insurance claim.
Roadside assistance coverage can save your life if you’re stranded with your car. You can add it to your insurance plan or buy it separately to get benefits like towing, lockout service, and more.
