When it comes to commercial vehicle insurance, there are a lot of things that need to be considered. The world of commercial trucking is a very specific and unique one – if companies don’t pay attention they can find themselves in a lot of trouble when it comes time to insure their vehicles. Here are 7 common mistakes companies make when it comes to commercial vehicle insurance.
1. Choosing the wrong limits of liability coverage
When it comes to selecting their limits of liability coverage, companies tend to be both too high and too low in many cases.
Let’s start with being “too high” when it comes to coverage – when you’re looking for an insurer (and by extension, an insurance policy), you’ll find that limits are expressed in several different ways. The most common are “single limit” and “split limit”.
Single Limit Coverage is the highest amount of coverage for a single Auto Policy while Split Limits Coverage refers to the highest amount of coverage per claim . Auto Insurance companies offer these types of policies with different limits, so before taking out a policy, companies need to determine how much they are willing to pay in the event of an accident. The amount required will be based on factors such as the type of work that is being completed by the vehicle and its estimated value.
Some carriers may only offer one limit policies, which means that if you have a claim that exceeds that amount, you would have to file two claims. This is especially true with cargo insurance.
Another mistake companies make when it comes to choosing their limits of liability coverage is being too low – this often happens where there are so many risks associated with the type of work being done by a business that they don’t want to risk an accident that could result in damage to the business’s property, injury to their employees or any other possible outcome.
The problem with this is that companies often end up underinsured because they may not be aware of how financially devastating the cost of an accident (especially one involving a truck) can be.
2. Failing to know if their drivers are underinsured
This is by far one of the most significant mistakes businesses make. There are many reasons for this, but the two main ones are because companies don’t want to ask their drivers if they have coverage or because they think that making sure drivers have at least some kind of insurance will be an unnecessary expense.
Many drivers who own their own company opt not to get commercial insurance because they can’t afford it. They may drive a personal vehicle that they use in the course of their work, but this doesn’t mean that they’re insured in the event of an accident or if their truck is being used for other purposes at the time.
This problem is becoming more common as many companies are asking their drivers to use their own vehicles for work. In the past, business owners would either rent or purchase a commercial insurance policy that covered the entire time that one of their trucks was in use, but nowadays many companies are just sticking with what they know and allowing employees to drive personal vehicles when it comes time to do some work.
3. Choosing comprehensive coverage for their cargo
Businesses who ship or transport items need to make sure that they have the right type of insurance in place, including cargo insurance.
Unfortunately many companies don’t know what types of policies are available and as a result, end up with comprehensive coverage for their cargo (for example, those that ship equipment, goods or anything else that may be damaged in transit).
While there are a number of reasons why this might happen, the main issue is that companies don’t know how to choose the right policy. Comparing quotes from different providers can help make sure you get the best value for your money and ultimately save time and money as well as avoid having your assets damaged in the event of an accident.
4. Choosing their cargo coverage based on price alone
It is important to note that just because a business is getting one type of insurance doesn’t mean that they can’t get another – this is especially true when it comes to choosing commercial vehicle insurance and cargo policies .
Companies need to understand that in most cases they’ll be able to buy several different types of coverage and combine them together in one policy. This can help save time and money when it comes to finding the right solution for their needs.
For example, if a business is looking for cargo insurance but doesn’t really care about whether or not their assets are protected against theft or damage, it would be a good idea to pick up theft coverage as well.
By doing this, businesses can make sure their assets are covered in the event of an accident or if they’re lost or stolen, without having to pay more for cargo insurance than what is actually needed.
5. Failing to plan ahead
When it comes to commercial vehicle insurance , it is important to understand that the sooner companies start planning, the better off they’ll be in the long run.
With this in mind, businesses need to make sure that they’re getting quotes from different providers and comparing their coverage options well before they actually have to use their insurance policy .
This can help ensure that companies are getting the best possible value for their money and that they’re ready to go should an accident occur.
6. Not shopping around
Before making any decision, most people will research many different policies and companies in order to find something that is right for their needs. Usually this means comparing quotes from several providers until they find one that offers a suitable price.
In most cases this works well, but there is another important element to consider when it comes to commercial vehicle insurance : the reputation of the company .
Many companies have a bad reputation in their industry or can get a low score from customers for many different reasons – maybe the claims department is difficult to deal with or they only pay out when it suits them.
As a result, in most cases situations like this will mean that the insurance for your commercial vehicles is not worth the paper it is written on.
7. Not having a specialist insurance broker on their side
Finally, one of the most important things that companies need to do is make sure that they have a good commercial vehicle insurance expert on their team.
Insurance brokers can help businesses figure out which types of policies are best for them and will also be able to see any potential problems before they arise, meaning that there is less chance of bad surprises when it comes to the bottom line.
By following these seven steps, companies can make sure they are getting the best possible value for their money – whether they are looking for cargo insurance , comprehensive cover or any other type of commercial vehicle insurance.
What is the difference between cargo insurance and comprehensive commercial vehicle insurance?
Cargo insurance policies cover specific items of value – usually those that are physically being transported at the time. Comprehensive policies will generally include all of your mobile assets and can help protect them in a variety of different circumstances. This includes accidents, theft or damage that occurs while not on the move.
Will a commercial vehicle insurance company cover items when they are not on the move?
When it comes to commercial vehicle insurance, there are many different policies available that can help cover items in a variety of situations.
Some policies will only be able to provide protection when the vehicle is on the move – which means that if any accidents happen while stationary then coverage may not apply. Other policies include all mobile assets, including those that are stationary. This means that if the vehicle is stolen, vandalised or damaged while sitting in a parking lot then an insurance network may be able to provide cover for the costs associated with the damag
How does my business get started with commercial vehicle insurance?
Determining what exactly your business needs when it comes to its commercial vehicle insurance can be difficult, especially with so many different policy options available.
Fortunately there is one thing that all companies need to do before they get started – make sure that they are getting quotes from different providers and comparing their policy options.
By doing this businesses can make sure that they are getting the right policy for their needs and that they aren’t being over charged with regards to premiums or anything else that will leave them out of pocket in the long term.
What can I look for in a good commercial vehicle insurance policy?
There are many different factors involved when it comes to finding the right commercial vehicle insurance policy, but there is one important aspect that companies need to think about above all others – value.
When determining if they have value, businesses will need to check the type of items that they are looking to cover and how much they cost in total, as well as anything else that may be valuable on a larger scale. Once this is clear, companies can look for a policy that offers them value on an individual basis or with regards to the entire vehicle.
In The Main
We hope this blog post has given you some insight into the 7 common mistakes people make when getting commercial vehicle insurance. If so, please share your thoughts in the comments below! You can also visit our site for more information on how to get a quote or explore other posts about logistics topics.