There are about 3,50,000 Truck Owner Operators in the U.S. and they keep plenty of unique insurance scenarios and insurance requirements. If you are an owner of a Truck or operate a truck, then you would like insurance plans that lower your risks and protects you from liability.
Being an owner and operating your own truck is often an exquisite way for an entrepreneur to form an honest income. Having your own truck provide you freedom of being one’s own boss and make you a worthwhile occupation for several owner-operators. Hence need for insurance is an important operating cost.
On 1st. April 2021 there was an enormous change in individual insurance costs for the self-employed that’s gone mostly unexamined within the trucking press so far – increased access to premium subsidies put in place for a minimum of subsequent two years for plans purchased through the Affordable Care Act’s health-insurance exchanges.
For people who purchased an idea via the Exchange for 2021, and also for any new plan purchasers, there’s a high likelihood of a far better deal than was available before the change.
Depending on the fact that whether you use it under your own authority or operate under a permanent lease, you will have different coverages available to think about. For leased owner-operators, which are more common, you will want to think about the subsequent coverages: –
Operating Truck as an Owner Operator Authority
Basic Liability: The Federal Motor Carriers Safety Administration demands $7,50,000 in primary liability coverage if you are operating under your own authority while some brokers or shippers require $1 million in primary liability coverage to cover losses due to injuries to others or damage to the property of others.
General Insurance: As a business owner, general insurance may be a foundational coverage to guard your business against non-auto related liabilities like bodily injury, property damage, advertising injury, and private injury due to ignominy or libel.
Coverage of Passenger Accident Claims: Passengers who are not co-drivers or employees, are covered for accidental death or dismemberment and accidental medical expenses due to an accident.
Motor Truck Cargo insurance: When you are operating the Truck under your own authority, you are responsible for the safe delivery of the cargo. Motor truck cargo coverage protects against losses due to cargo damage or loss.
Protection against Physical Damage: Your truck is your livelihood. Physical damage coverage works during a similar thanks to collision and comprehensive coverage for passenger vehicles. If your truck is broken or maybe destroyed, physical damage coverage pays to urge your truck repaired or pay toward its replacement.
Unladen Liability: If you are travelling with an empty trailer or without a trailer, unladen liability coverage protects against accident-related liability.
How Much Does Owner Operator Insurance Cost?
It is difficult to calculate the approximate cost of any type of insurance because there exist so many variations such as the types of coverage purchased, the dollar amount of coverage purchased and the unique risks for each policy.
Truckers Health Coverage has trusted agents who are experts in owner operator insurance and can help you to understand which type of insurance coverages you will need to protect your trucking business and meet mandatory requirements.
When Do I Need Owner Operator Insurance?
There are several sorts of insurance coverages you can choose, starting from liability coverage, which pays for damage or injuries due to a truck accident, to coverage to guard your truck itself.
Some coverages are required by law while some others could also be required by contracts and a few, while optional, protect your business so you will keep it up trucking.
Primary liability coverage is required altogether states. If you are operating under a permanent lease, your carrier often covers primary liability coverage under their insurance policy.
However, if you are operating the truck outside of dispatch, you will need additional coverage to guard you against liability due to accidents that will occur once you don’t have a trailer or are pulling an empty trailer.
Tips to Choose the Best Insurance Plan For Truck Drivers
Now it is the closing time of open enrollment for most health insurance plans. Now, if you are a Truck owner operator or operate as an independent contractor, then you need to take an insurance coverage policy before the end of November month. Now we are giving some quick owner-operator tips to help you to choose the best coverage:-
1. To Verify the Company Rates
If you’re leased onto a corporation, then you would possibly be ready to piggyback off of their coverage and check in with them.
In such types of situations, where coverage isn’t available, trucking companies may have access to discounted rates for owner-operators working with their organization, or be ready to point you in a helpful direction.
2. To Check Rates with OOIDA Plans
The Owner-Operator Independent Driver’s Association(OOIDA) offers many plans in order to meet the minimum ACA requirements.
This association offers additional coverage such as vision, dental, short and long-term disability and accidental death insurance plans. If you are searching for insurance enrolment, you can check their premium prices before making any final decision.
3. Understanding of Benefits and Legal Parameters
First of all, you must understand that if you don’t want a fine, you must follow the rules for qualifying insurance coverage. However, prior to signing on the dotted line with your insurance company, please ensure the following points:-
- Does the insurance plan qualifies ACA minimum requirement or not?
- What is my maximum family out of pocket?
Ask the concerned insurance company if the offered plan is a health care or a health-share program? (health-share programs consists may limitations and question them as your needs -what they will provide and will not provide)
- How much is my deductible and what is my maximum individual out of pocket?
- What is the scope of my prescription for drug coverage?
- Which hospitals and doctors are in my preferred network penal?
- How many types of my coverages for therapies ( physical therapist, psychological services, chiropractor etc.)?
4. Follow up with Your State Trucking Association & State Insurance Division
Go to your state trucking association that will suggest to you some best insurance carriers or it may be possible association will offer group coverage for owner-operators. This method may be best to learn more information about the insurance landscape in your state from fellow truck drivers and owner-operators instead of getting that information in another way.
However, it may be possible that when you contact the trucking association, they will advise you to contact the state insurance division. When you adopt this procedure, you can get a list of all the approved insurance carriers in your state and choose the best as per your own needs.