Truck Insurance Coverage Explained

Hey guys, welcome to Nelson Insurance. I am going to walk over the foremost common coverages for trucking. So that way you know what you're throwing your thousands of dollars towards. So that way you even know what the coverages are. So there are four types of coverages that are most common with trucking. General liability, auto liability, physical damage, cargo. Do a quick description of all four of these things here starting with the the least or I'm sorry the most known. Typically to the least known. So right off the bat auto liability, everybody knows it because you got to get 750,000 for your authority, you got to have a million for your brokers. Then if you get has you got to have a million or you get a 5 million. I'm sorry, with auto liability it is going to cover you or the other person in an accident. I say you as it's protecting you from them suing. So you get an accident with what? Joe? Joe's broke both his legs. Hospitals are $500,000, he's suing you, you got a million dollars of coverage. $500,000 is what he's suing you for and that's covered. It's also going to be for buildings, for vehicles, for any type of injury. Death, you get a death. You're never getting trucking insurance again. Just heads up. So there is that. Next up is cargo insurance. Cargo insurance is pretty self explanatory. It's covering your cargo. There's a million different riders and different endorsements on this thing that have a lot of coverage difference. Heads up. Auto liability is pretty simple. You include your drivers and trucks. It's covered pretty much every time you get cargo insurance. There's different types of policies where it gets, it gets worse, it gets better. This is something you need to look into. So there are also a million different endorsements and riders on this policy. So you get to have pollution. If you're hauling milk or gasoline, you got to have a pollution rider or pollution policy. There's earn freight. If you're hauling a five thousand dollar load and somebody smokes you, you're not getting that load there on time. Insurance companies can pay out the five grand for the lost income. There is reefer breakdown. Reefer goes down, all your stuff melts, it's ruined or it's or just goes bad, they're going to cover you, you're going to have driver error. I had insured that, had an employee that put the reefer at the wrong temperature. Well it was $40,000 worth of grapes in one bag. Driver covered that there's all sorts of stuff for, for cargo. So make sure you ask about that stuff. Make sure you know stuff's covered. Make sure that the stuff you're hauling your agent is aware of. Because that is very important to make sure that commodities is covered. Next up probably going to be physical damage. Physical damage is protecting your truck. Your trailer that you own doesn't cover stuff you don't own. That's the trailer interchange or anything on those lines. I mean it could be a truck that, that you don't own, but as long as that person's listed. So how this works is if I get a truck and this truck's worth $300,000. Well there's usually two different types of replacement costs. This truck, ACV and State of value. A lot of people think stated value is going to cover that truck for whatever it listed as. When you guys are talking to your age and the agent, they go what do you think that truck's worth? Ah, well I want to, I want to be safe. I'm going to say 250,000 to make sure that even make a little bit of money. If that truck goes, the truck goes down. Here's the thing though. So ACV stands for actual cash value or it's market value. They're going to pay you what that truck is worth. Stated value. You are going to list a price. But here's the trick. The insurance company is going to pay you the lesser of the two. So I put my truck is worth $350,000 as a stated amount. Market says my truck is worth 275. Let's appreciate a little bit. They're gonna pay me 275 and vice versa. You put your truck's worth 275 and it's actually worth 350, they're gonna pay you 275. So you're getting screwed either way. So try to get on on par as much as you can with that coverage. So that way you know you're not overpaying and you're not getting screwed in the title claim. Last main popular coverage is general liability. General liability is pretty dirt cheap. It's about 750 bucks a year, maybe 500, maybe a thousand. Pretty easy if you got a shop. Definitely a lot more common, a lot more useful. It's somebody walks into your shop gets hurt. Premise liability, blah blah blah, you're covered. Trucker liability. Someone is walking around, the truck gets hurt. It's business operations. That does not include auto liability. Auto liability is while you're on the road, you hit somebody, you do damage that way. Truck stopped, it's business operations where you're getting sued for that type of stuff. Million dollars in coverage, it's 500 bucks, for example. Progress, it'll be 550 bucks. They'll give you a 200, $300 discount on your auto liability. So you pay $200 extra a year to get this stuff covered. I recommend it. But that is the explanation of the four popular coverages there for trucking light or for trucking cover, trucking insurance. So that way you guys know what you're spending your money on because heck, you're spending, you're spending tens of thousands of stuff a year on this. So if you guys got any questions, shoot me a comment down below. Please like and subscribe. We're trying to get my videos to do better so that way more people are watching this stuff and I can keep educating people. We are a truck insurance agency. I specialize in truckers and helping them out. So I, I got financing, I got discounts, I got on elds, dash cams, I got safety management, fuel cards, factoring, obviously insurance. I got multiple exclusive options. So if you guys got any questions and anything, please let me know. All the stuff's in the description down below the links. Thanks for watching once again. I'm Hunter with Nelson Insurance SA.