The economy of the United States of America heavily depends on the trucking industry. Trucks move freight weighing at 10.5 billion tons on an annual basis, which accounts to over 71% of the overall tonnage of freight transported in the US. It is estimated that more than 3.6 million trucks are in operation in the US alone. Regardless of whether these trucks operate as common carriers or private carriers, they require adequate protection through commercial truck insurance.
When looking into commercial truck insurance (private carrier insurance), it is important to note that there are various types of insurance coverage available.
What are the different coverages available for Private Carrier Insurance?
Liability Insurance – in the event that you are involved in an accident, which results from your actions, liability insurance will cover any injuries to other people and damage to their property. This means the coverage comes in two parts i.e.
- Bodily Injury Coverage which protects you in the event you cause an accident that results in the injuring or killing of another person. This coverage will pay for all related costs including medical and hospital bills, rehabilitation, nursing care as well as lost wages. It will also cover funeral expenses if the accident resulted in death.
- Property damage which protects you in the event you cause an accident that causes damage to another person’s property. This coverage will pay for the cost of repairing or replacing the damaged property. It will also cover legal fees should you be sued for your part in the accident.
Physical Damage Coverage – this coverage comprises of two basic coverages which safeguard your truck. This coverage will need you to decide on a deductible i.e. the amount you are willing to pay out of pocket in the event of a claim. These coverages include:
- Collision insurance Coverage: this coverage protects your truck in the event that it is damaged in an accident. This coverage will take care of any repairs or replacements required if the vehicle is damaged.
- Comprehensive Coverage: this cover pays out if your vehicle is stolen or has been damaged in any other manner other than through colliding with another object or vehicle.
Medical Payments Insurance – this coverage pays for the medical bills should you or any passengers in the truck get injured as a result of an accident as well as any other injuries related to the vehicle. It is important to note that this type of insurance is only available in select states. California is among the states which provide this coverage.
Private truck insurance filings
When hauling across state lines, truckers need to have federal or state insurance filings i.e. Financial Proof of Responsibilities. These filings assure the government that you are operating under the protection of sufficient trucking insurance.
The trucking industry has various types of carriers operating within it. Not all carriers within the industry are accessible any one individual. This is because not all carriers that you see on the road are part of a service you can easily access through an auto transport website; there are different types of carriers available in the market normally grouped into two types:
· Motor carrier
· Motor private carrier
What is the difference between motor carrier and motor private carrier?
Below are the main factors differentiating these two types of carriers.
· Motor Carrier
Also known as Common Carrier, this is the most widely available type of carrier among the two. Motor Carriers are for hire haulers transporting goods for any motor transport broker, without discrimination, for a negotiated price. Motor Carriers are required by law to have a permit, and be fully insured and bonded before resuming operations. They also have to apply for special permits to transport hazardous materials.
Most of the common carriers in the industry are contract carriers.
Ø Contract carriers – these are similar to motor carriers in that they are also hired. The difference however is that with contract carriers, they work exclusively under contractual agreement with one particular organization or company. This means that the carrier only transports for one specific company or organization under a contract position.
These carriers are not as common today due to the fact that there are a large number of them in the industry making it highly competitive i.e. brokers have the luxury of selecting the best with regards to the price, scheduling and experience. They are usually mostly found in companies or organizations with extensive nationwide presence and operations.
Most common carriers feature a plain outward appearance because of the fact that they are carrying freight for various different companies or organizations at any one time. Some professional haulers have their own logo on the exteriors of the trucks, advertising themselves while hauling for different separate entities.
The large number of common carriers in the trucking industry allows transport brokers enjoy attractive prices which makes transportation more affordable for them. This, in turn, increases the profit margins while also allowing the brokers to extend affordable rates to their customers.
· Motor Private Carrier
While Common and Contract Motor Carrier are accessible to anyone willing to hire them, Motor Private Carriers are not. In contrast to the former, the latter is only available to everyone as transportation is not their primary business. These carriers are privately owned meaning they belong to the companies or organizations carrying out the transportation and therefore do not transport goods for other companies for hire. Some of the most common Motor Private Carriers are semi-tracks although larger companies may also include aircrafts and ships among their fleet. The composition of a fleet largely depends on what the company deals in and their destination.
At Strong Tie Insurance we specialize in trucking insurance, providing you with affordable commercial truck insurance. If you are looking for commercial truck insurance California, you have come to the right place. We recognize the risks that come with operating a specialty vehicle and to this end have come up with a reliable program that can be customized to meet your unique needs.
If you are looking for commercial truck insurance companies in California, look no further than Strong Tie Insurance. We are professional and reliable.