Like any type of insurance, commercial truck insurance is not something that you want to pay for but it is something that you need. Chances are that you will never need the insurance but the fact of the matter is that it is better to have the insurance and not need it than to need it and not have it. If you are just beginning to look into the cost of semi truck insurance there is some information that you should have to make sure that you not only get the coverage that you need but also the coverage that you need at an affordable price.
The Coverage Choice
Much of what will affect the price of your insurance premiums is the coverage that you choose. As is the case with any type of vehicle insurance of medical insurance, the better the coverage the higher the price will be. While it will be tempting then to choose the least amount of coverage for your semi truck, you need to think about what sort of coverage you would like to have should you actually need to call upon the coverage if your box truck is damaged in an accident or due to theft.
There are generally two types of basic coverage. There is collision coverage and comprehensive insurance. Collision insurance will only pay to have the vehicle that you hit, if the accident is your fault, repaired. With Collision insurance you will not have any repairs to your commercial truck, so if the accident is your fault you will be out of a box truck unless you personally have the funds to repair it.
Then there is comprehensive coverage. This type of commercial vehicle coverage is going to be most costly because if you are involved in an accident it will cover your repair costs as well as the repair costs of the other vehicle, if it is your fault. Having this type of coverage will cost more but if you have a newer dump truck or you do not have a lot of money in savings this is the way to go because it will ensure that you are able to get back on the road as the commercial truck insurance company will pay for repairs up to a specific dollar amount.
Amount of Coverage
Aside from the basic types of coverage, you’ll also have the option to choose exactly how much is covered under collision and comprehensive plans. There are usually state minimums but you can choose to pay for coverage that goes above and beyond this. For instance, if you have comprehensive insurance the state may only require that you carry a policy that will cover up to $2,000 for repairs for the other vehicle. Yet, you can pay to have more coverage. The same can be said for the amount of coverage that you want for your vehicle. For instance, a basic comprehensive policy may pay up to $2,000 for repairs on your 18 wheeler. You can increase the coverage but it is going to cost you.
Of course, the more coverage you have the more the policy is going to cost you. What you need to consider is how much you can afford to pay out of pocket if you were to be involved in an accident that was your fault. If you don’t have a lot of money in the bank for such repairs it is a good idea to pay for more coverage so you can ensure that you are able to continue going to work after an accident.
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The Almighty Deductible
The deductible is also going to affect how much your commercial truck insurance premiums cost. The deductible is the amount of money you will need to pay out before your insurance kicks in. Generally you’ll have a $500 to $2,000 deductible. This means if there are repairs that need to be done, you’ll pay for them up until you reach that deductible amount and then the insurance will take over.
Again, if you don’t have a lot of money in the bank it makes more sense to have a lower deductible. The lower your deductible is the higher your premium is going to be. This is because there is more risk on the part of the insurance company but if you don’t have a lot of money in the bank you need to make sure that you can afford the deductible. If you have money in the bank to act as a padding for these types of incidents, you can choose to increase the deductible which will significantly lower the premium.
You should think very hard about your deductible. If you are involved in an accident it will be your priority to get your vehicle back on the road as soon as possible. If you don’t have a lot of capital to pay for repairs it makes sense to choose a policy that is more expensive in the short term but will give you the funds that you need to make repairs should you need them. If you have more capital and a clean driving record, it makes more sense to choose the commercial truck insurance policy with a higher deductible which will make the policy more affordable.
Other Coverage
The add-on coverage that you choose for your business vehicle will also affect the price of your insurance policy. There are many add on possibilities such as uninsured motorists, road side assistance, hazardous materials and more. These are great types of coverage to have when you are on the road a lot but they will increase the cost of the policy. Again, it’s all about what you can afford to pay out of pocket should you get in an accident or have other issues. You’ll need to weigh the pros and the cons of these types of insurance and their cost.
Number of Vehicles
Often times, if you are insuring more than one business truck you can receive a discount. While you may be seeing an increase in cost at every other turn, when you choose to insure more than one vehicle you may be able to reduce the individual cost of insuring each vehicle. If you have insurance for your business or your home, you should consider adding on your commercial truck insurance to that policy, where applicable, because you can often receive an additional discount for insuring with the same company provided that they insure semi trucks.
