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Box Truck Insurance in the USA

Box Truck insurance purpose and its need:

Why do you need box truck insurance?

Box truckers need to get insurance coverage for multiple scenarios to be on the safer side of things. Box Truck insurance provides an umbrella of legal and financial protection to drivers and box truck operators.

Accidents that cause bodily harm and injury to your drivers and 3rd parties are covered under box truck insurance. Cargo or freight is also covered. Your employees are also covered if accidents or illnesses occur on the job, Your tractor or equipment is also covered, There is also insurance for workers' compensation and occupational accident insurance coverage.

 Drivers and fleet owners are covered for theft, vandalism, and fire. 

Box truck insurance workings:

How does box truck insurance work?

As a box truck operator, you would be exposed to different threats and calamities. Box truck insurance is one way in which you can protect yourself and your company from these scenarios. 

Box truck drivers and equipment are covered by the insurance. The insurance also covers bodily injury and collision, damage of 3rd parties.  Box Truck insurance also protects cargo or freight from damage. 

Box truck insurance covers your equipment and tractor damage because of theft, vandalism, and natural calamities, 

Insurance requirements for Box Trucks owners and owner-operators:

What are the requirements of box truck insurance?

Insurance coverage limits set by FMCSA is what BoxTruckers are subject to. Minimum coverage limits of box trucks are set by FMCSA This limit is set based on the weight, distance hauled and cargo type carried. 

Heavy trucks will have to pay higher premiums and has higher insurance requirements.

The below list summarises the federal minimum insurance requirements based on the type of cargo being transported 

  • General liability’s coverage limit is $1 million yearly premium paid is $700 to $7000.
  • Trucking liability is 750,000 for interstate trucks and the yearly premium is $2,500 to $4,000 per tractor.
  • Non trucking Liability has a coverage limit of 250,000, the yearly premium estimate is about $450 to $5,000 per tractor.
  • Bobtail insurance is has a coverage limit of $1000,000, the yearly premium estimate is about $350 to $450 per tractor.
  • Physical Damage the coverage depends on the actual and stated value of the equipment, and the premium would range from 2% to 5% of the value of the truck 
  • Motor Truck Cargo coverage limit ranges from $20,000 and $100,000 in different US states, the yearly premium estimate is $500 to $1000 dollars
  • Workers' Compensation depends on the cargo you are transporting, the yearly premium would be about $2500 
  • Occupational Accident insurance, depends on the load being carried yearly premium estimates range from $1600 to $2200.

Box truck  insurance cost:

How much is the cost of box truck insurance?

The annualized premium for box truck insurance would be between $3000 to $100,00. The premium amount depends on various factors like:

  • Does your driver have clear driving records
  • The load types you are carrying 
  • Value of the trailer or equipment
  • The radius of your operation 
  • Coverage of your policy
  • Limits of your policy
  • The deductible you need to pay
  • Your credit history 
  • Your payment plan

If you are looking for a low premium, high limit, and low deductible policy, you can use an internet tool like Coverwallet to compare and contrast your policy choices, You can also ask your insurance agent to find a reasonably priced, high limit and low deductible coverage for your business.

A low limit, the high deductible policy will set you back a lot of money from your savings if a serious accident or a nightmare scenario occurs, This means you will be forced to pay out of your pocket to cover the losses that occurred  because of the adverse scenario or incident,

The insurance premiums are a large overhead for your box trucking business, you as a fleet owner or owner operator need to find a good insurance company that gives you specific coverage for specific incidents at a reasonable rate.

Factors that affect the cost of box truck Insurance policies:

What are the factors that affect Box Truck insurance?

Dirt cheap insurance may not cover you for all the adverse scenarios or incidents you might encounter while carrying box truck freight or operating a box truck. There are various factors that influence your insurance cost, insurance companies weigh in these factors to reach a policy premium amount:

The factors that affect the policy premiums are:

  • Ownership status 
  • Cargo types
  • Freight weights 
  • The distance the load is hauled
  • Truck value
  • Type of physical damage
  • Driver or owner’s credit history 
  • Loss history
  • CDL and trucking experience 
  • Deductible amount 
  • Coverage limits 

Finding a cheap box truck  insurance:

How to find cheap box truck insurance?

You need to research hard and find a great insurance company first to get low insurance premiums. Cheap insurance could become a double-edged sword because when you need good coverage cheap insurance would fail you.

There are various techniques that you can use to find an affordable insurance policy. What you need to understand is:

Firstly long hauls mean big insurance premiums, secondly, more weight means higher premiums, finally, if you are carrying hazardous materials you have to pay big premiums.

You need to also understand that new MC operators would pay more on premium and it increases the cost of their insurance. Seasoned MC owners with good CDL experience will have low insurance premiums.

These are factors that you should consider to get affordable box truck  insurance:

  • Compare and contrast quotes from several insurance agencies
  • Ask for discounts:
  • Pay your whole premium upfront
  • Get the right coverages
  • Increase your deductibles if you are prepared to pay it, when you encounter an incident
  • Always be on the hunt for new Insurance

Box Truck insurance protects your business:

How does box truck insurance protect your trucking operation?

Insurance for a box truck operator depends on your status i.e. whether you are a leased owner operator or an independent owner-operator. The insurance need of a leased owner-operators is often covered by their truck owners. 

Most Common types of box truck insurance, what it covers, who need it:

General liability: 

3rd party property damage or bodily harm caused by your driver or equipment is covered by this insurance. The drivers and motor carriers need this insurance. 

Primary trucking lability: 

If drivers who create property damage, bodily harm, or physical injury, due to a trucking incident it is covered by primary trucking liability. This insurance is for motor carriers and drivers with authority. 

Non trucking Liability

If the truck is used by the driver for non trucking business and there occurs an accident nontrucking liability kicks in. Drivers under lease need this insurance. 

Bobtail insurance: 

If your truck is damaged due to collision, natural disaster, theft, and vandalism, bobtail insurance kicks in and covers your truck or equipment. Drivers under lease need this insurance. 

Physical damage coverage: 

The damages occurring to your cargo while it is transported are covered by the physical damage insurance. Fleet owners and owner-operators should take this insurance. 

Motor truck cargo insurance: 

If damages occur to your cargo, freight, or shipment due to Collison, fire, or striking of a load, motor truck cargo insurance kicks in. This insurance is for carriers who need to insure cargo or freight.

Workers' compensation coverage: 

If employees get injured or ill during work, worker's compensation coverage kicks in. The worker's compensation insurance helps employees to get back their wages or salaries and get medical bills paid after work-related illness or injury.

This insurance is for all trucking operations with employees.

Other box truck insurance coverages truck owners or owner operators should consider for extended converge is:

Occupational Accident Insurance Coverage (OAIC): 

QAIC provides employers and employees a certain amount of coverage for job-related injuries.

OAIC covers job-related injury, wages, salaries, and death benefit up to the policy limit The box trucking business can choose their deductible limit and the disability coverage they want to buy.

Hazmat Truck Insurance: 

As per the type of hazardous materials hauled, hazmat trucks are mandated by law to provide insurance liability from $1,000,000 to $5,000,000 per accident.

Trucking Umbrella Insurance:

As a trucker or owner operators you will have some sleepless nights due to your noncovered insurance gaps or exposures. The umberalla insurance can cover these gaps and provide you maximum protection. 

Some umbrella policies exclude key risks, you need to read the contract to find out what it excludes. 

Uninsured & Underinsured Coverage:

If 3rd parties meet with an accident with an at-fault driver, who doesn't carry liability insurance, uninsured motorist insurance kicks in and saves the day fpr the trucking company.

If 3rd parties meet with an accident with an at-fault driver, whose liability limits are to low cover the 3rd party, underinsured motorist insurance kicks in. This insurance covers medical expenses of injured 3rd parties. 

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