Truck Insurance

One big factor in CDL jobs is truck insurance. The federal government mandates that every truck is covered by primary liability insurance. This type of truck insurance covers other drivers in case they are injured or their property is damaged by the truck in an accident. Federal law requires a limit of one million dollars for each truck. Motor carriers typically provide this type of insurance for their leased operators. In the rare instance it is not provided, or the driver operates the vehicle under their own insurance, the driver would be responsible for buying primary liability insurance.

The driver's tractor and trailer are not covered by primary liability insurance. To protect their rig, drivers will want to have physical damage insurance. Once again, this is something the motor carrier would generally provide to lease operators. Drivers who own their own trucks would want to purchase this insurance to protect their livelihood, though it is not required by law. The premium for this type of truck insurance is related to the market value of the truck and trailer.

If a leased operator's truck is covered under primary liability insurance through the motor company, the driver will still want to purchase what is known as non-trucking liability, or NTL. NTL provides liability coverage when the truck is being used for purposes outside the scope of the lease. There are several other types of truck insurance that may be needed, especially when cargo is involved. Cargo insurance covers freight while the truck is on the road. Warehouse legal coverage insurance and terminal coverage insurance protect the cargo when it is being held in a warehouse or stored at a terminal.

Truck owners operating under their own authority will need to decide which types of vehicle insurance they want to carry, and for how much. When a driver is leased to a motor carrier they should discuss which policies the company will provide and which policies the driver is responsible for before purchasing any truck insurance policies on their own.