Easy guide on why commercial vehicle insurance is needed

Getting started is relatively easy. In most cases, you just need your truck and any related equipment - that and the right driver’s license classification, of course. But once you have those, you can start working.

But, while working in the transport industry can be profitable, you might also find some unanticipated expenses may get you along the way.

• Fuel - When you’re in the transport industry, fuel will undoubtedly be one of your bigger expenses. The ATRI (American Transportation Research Institute) Survey says it accounts for about 30-40% of truckers’ costs. A refuel can cost at least $1000 per tank for some trucks.
• Equipment - Buying your truck, its maintenance, and any repairs can sometimes cost a lot of money. Older trucks may also start costing more to maintain over time. You may end up finding yourself spending more to keep your vehicle in good, drivable condition. In this case, it might be time to simply get a replacement.
• Expenses on the road - You might not have accounted for costs you may have on the road, as well. You may need to pay for meals, room and board, showers, tickets, fines, and other fees.

vehicle insurance

Why Commercial Insurance is Important

When working in the transport industry, something as simple as a costly roadside breakdown can derail you financially. On top of that, accidents can put your equipment out of commission for a while. Not being able to take jobs can make a major dent in your bottom line. Insurance can help prevent financial ruin and keep your business running for years to come.

Here are a few reasons you should have the right insurance coverage when working in the transport industry.

1. Keep Your Business Going in Tough Times

There are many ways insurance can help you keep your business running when something threatens your business, and here are just a few of them:

• Your insurance policy can help you cover the costs of repairs or replacement in the event of damage to your equipment.
• With proper coverage, your policy can help you cover the costs of litigation in case you get sued.
• In case of downtime, some insurance policies can help you cover lost income. Some may also help cover the cost of a rental. Rentals are helpful to get you by while your truck is in for repairs or while you are waiting for a replacement.

2. Protect Your Investments

Getting started in the transport industry can be a costly endeavor. Just getting a truck alone can cost a fortune, and you still have to think about maintenance, repairs, fuel costs, fees, and more. It’s a good idea to get an insurance policy to cover your risks and protect your investment. That way, if something happens, you won’t be feeling a complete loss.

3. Cover Your Risks Even Off-Duty

When working in the transport industry, you won’t always be driving your truck for business. Sometimes, you’ll have to go places off-duty. You may have to drive a tractor without a trailer, too - and driving them this way can introduce more risks.

Bobtail insurance can help protect you and your equipment while you’re off duty. It covers any damage or losses that happen when you’re driving your tractor without a trailer. It’ll also cover anything that happens while you’re doing personal errands like shopping for supplies.

Insurance is Legally Required

Besides all the benefits of having insurance, you’re also legally required to have it if you want to operate in the transport industry. Federal regulations require $750,000 in liability insurance. But, depending on what you drive and what state you’re in, you may need a higher amount.

It’s also a good idea to make sure you have enough insurance coverage since it’ll make it easier to find work and clients who are willing to work with you. Insurance makes you look professional and more trustworthy overall.