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Insurance is one of the most significant ongoing expenses, whether you are running a fleet or managing a single truck. However, there are several ways you can reduce your truck insurance premiums without compromising coverage. By being proactive and making informed decisions, you can lower your costs while maintaining adequate protection. Here is how:

Ways to Lower Premiums

Your truck insurance premiums will decrease after you evaluate all the details of your policy:

• The simplest method to reduce premiums involves adjusting coverage limits according to your actual requirements. The type of truck usage determines your insurance coverage needs since short-distance local driving requires less coverage than state-to-state operations.
  
  
• A higher deductible amount will decrease your premium costs because you will bear more responsibility when filing claims.
  
  
• You can also reduce your truck insurance costs by combining it with other policies, including general liability and property insurance. Insurers give discounts to customers who buy multiple policies, which helps them save money on their premiums.
  
  
• A good driving record combined with a minimal claims history helps insurers view you as reliable, which results in lower insurance rates in the future.

Safety Programs and Discounts

Many insurance companies offer discounts for businesses and individuals who invest in safety programs or demonstrate safe driving practices. By implementing a proactive safety strategy, you reduce the likelihood of accidents and, in turn, the number of claims, which can lower your insurance premiums.

Standard safety measures include equipping trucks with GPS tracking, collision mitigation systems, and telematics that monitor driver behavior and driving patterns to enhance safety. Insurers provide discounts to fleets that implement these technologies because they reduce accidents and improve safety standards. Your insurance provider will offer discounts when you enroll drivers in defensive driving courses because this shows your dedication to risk reduction.

For companies with multiple vehicles, implementing a driver training program and regular vehicle maintenance checks can also earn premium reductions. Not only do these practices help reduce the risk of accidents, but they can also improve the lifespan of your trucks, reducing the likelihood of costly repairs or replacements.

Annual Review of Coverage and Costs

One of the most effective ways to ensure you're not overpaying for truck insurance is to conduct an annual review of your coverage and costs. Truck insurance needs can change over time as your business grows, and your current policy may no longer be the best fit.

Start by evaluating the value of your truck or fleet, the routes driven, and any changes to the level of risk associated with them. For instance, if your trucks have become older or you've reduced their usage, you may no longer need as much coverage. Similarly, if your business operations expand to new regions with different risks, you may need to adjust your policy accordingly.

During this review, it's also a good idea to compare rates from different providers. Your premiums for insurance coverage will vary between companies, so you should compare rates during renewal periods to find more affordable options or special discounts. Your growing relationship with an insurer may qualify you for loyalty discounts, so it is worth inquiring about these opportunities.

Contact Us for the Best Prices on Commercial Truck Insurance!

We are independent brokers here at American Insuring Group. Our agents shop the market for the best quality insurance rates that match your needs!

Call us today at (610) 775-3848 or online for the best truck and commercial vehicle insurance rates!

Filing a truck insurance claim involves several steps to ensure your claim is processed smoothly and efficiently. Here is what you should know:

Steps to File a Claim

1. Ensure Safety First

• Move to a safe location if possible.
• Call emergency services (911) for injuries or significant damage.
• Seek medical attention if needed.
  
  

2. Document the Scene

• Take clear photos or videos of:

• The accident scene

• All vehicles involved

• Visible damages

• Road conditions and traffic signs

• Collect contact information from:

• Other drivers involved

• Witnesses

• Responding officers
  
  

3. Notify Your Insurance Company

• Contact your truck insurance provider immediately (many offer 24/7 claims service).
• Provide initial details of the incident:

• Date, time, and location

• Description of what happened

• Names of involved parties and their insurance information
  
  

4. File the Claim

• Complete any required claim forms from your insurer.
• Submit supporting documentation:

• Police report (if applicable)

• Photos, videos, and witness statements

• Repair estimates
  
  

5. Cooperate with the Insurance Adjuster

• An adjuster may inspect your truck and review the damage.
• Be honest and thorough when answering questions.
• Access logs or electronic logging device (ELD) data if requested.
  
  

6. Follow Up

• Keep track of your claim number and the adjuster’s contact information.
• Follow up regularly if there are delays.
• Ask for a clear timeline for claim resolution.
  
  

7. Review the Settlement

• Once the insurance company processes your claim, review the offer carefully.
• If you disagree with the settlement, you can:

• Request a review or appeal

• Submit additional evidence

• Seek legal advice, if necessary

Additional Tips:

• Commercial Truck Insurance may involve special coverages like cargo insurance, liability, or trailer interchange. Make sure to file under the correct coverage type.
• Maintain records of all repairs, communications, and claim documents.

Documentation Needed

When you file a truck insurance claim, you must have comprehensive documentation to support your case and ensure a smooth claims process. Below is a list of the essential documents and evidence typically needed:

Insurance and Identification Documents

• Valid truck insurance policy
• The driver’s license of the operator involved in the incident
• Insurance information for all parties involved (policy numbers, insurance cards)

Accident and Scene Documentation

• Police report or accident report (if available or required by law)
• Photographs of the accident scene, vehicle damage, visible injuries, road conditions, weather, and traffic signs
• Witness statements and contact information

Vehicle and Cargo Records

• Cargo paperwork or bill of lading (to verify the nature and value of the cargo)
• Truck maintenance logs (to demonstrate compliance with safety regulations)
• Weigh station records and toll receipts (to establish the truck’s route and timing)

Medical and Financial Records

• Medical records, diagnostic images (X-ray, MRI, etc.), and photographs of injuries
• Hospital, ambulance, pharmacy, and home care bills/receipts
• Employment records, pay stubs, or tax returns (to document lost wages or income)
• Property damage estimates, repair invoices, or documentation of the vehicle’s actual cash value

Additional Supporting Evidence

• Cell phone records (if distracted driving is suspected)
• Truck’s electronic logging device (“black box”) data, if available
• Any correspondence with the insurance company (claim forms, adjustment records, emails, letters, notes from phone calls)

Timelines for Truck Insurance Claim Processing

Truck insurance claim timelines can vary based on the complexity of the case, the availability of documentation, and the responsiveness of all parties involved. Here’s what to expect:

• Claim Acknowledgment: Insurers typically must acknowledge receipt of your claim and begin the investigation within 15 days of filing.
  
  
• Investigation and Determination: After receiving all required information, insurance companies generally have another 15 days to investigate and decide about your claim.
  
  
• Payment: If your claim is approved, payment should arrive within 5 days after the decision.
  
  
• Overall Timeline: Simple claims (minor damage, clear liability) can be resolved within a few weeks. More complex claims, especially those involving injuries, disputed liability, or extensive documentation, may take several months to settle.

Contact us for the Best Prices on Commercial Truck Insurance!

We are independent brokers here at American Insuring Group. Our agents shop the market for the best quality insurance rates that match your needs! Call us today at (610) 775-3848 or online for the best truck and commercial vehicle insurance rates!

Gap insurance is a specialized, optional truck insurance coverage that protects truck owners from financial loss if their vehicle is totaled or stolen. It covers the difference between the truck's depreciated value and the remaining amount on the loan or lease, ensuring peace of mind and financial security.

What is Gap Insurance for Commercial Truck Buyers?  

Gap insurance, or Guaranteed Asset Protection insurance, protects commercial truck buyers if their truck is totaled or stolen. When an incident occurs, your standard truck insurance typically covers the vehicle's current market value—not the amount you still owe on your loan or lease. This "gap" between what you owe, and the insurance payout, can leave you with a significant financial burden.  

Gap insurance covers this difference, ensuring you don't have to pay out of pocket for a truck you no longer have. It's an essential safety net for truck buyers, especially those financing or leasing expensive commercial vehicles. Adding gap insurance to your policy can provide peace of mind and safeguard financial stability.

Benefits of Gap Insurance

Gap insurance offers several key benefits to truck owners, particularly those with new or leased vehicles. One of the main advantages is financial protection. In the event of a total loss or theft, standard auto insurance only covers the depreciated market value of the vehicle. Gap insurance bridges the gap between this amount and the remaining balance on your loan or lease, preventing substantial out-of-pocket expenses.

Additionally, it helps avoid negative equity situations due to rapid depreciation in a vehicle's early years of life. Gap insurance is especially valuable for those who made a small down payment or have loans with long repayment terms.

Moreover, gap insurance provides peace of mind, knowing you won't have a significant financial burden in a worst-case scenario. Gap insurance is a wise investment for maintaining economic stability and protecting assets.

How Does Gap Coverage Work for Total Losses?

Gap coverage addresses the difference between your vehicle's actual cash value (ACV) and the outstanding loan or lease balance if the car is declared a total loss. When such an incident occurs, your primary auto insurance will assess the car's market value and pay that amount. However, this amount could be less than you owe on the loan or lease due to depreciation.

Gap insurance covers this shortfall, ensuring you are not responsible for the remaining balance. For instance, if you owe $20,000 on your vehicle but the insurance provides only $15,000 based on its depreciated value, gap insurance would cover the $5,000 gap. This coverage prevents financial strain after a total loss and allows you to start over without outstanding debt.

Contact us for the Best Prices on Commercial Truck Insurance with Gap Coverage!

We are independent brokers here at American Insuring Group. Our agents shop the market for the best quality insurance rates that match your needs! Call us today at (610) 775-3848 or online for the best truck and commercial vehicle insurance rates!

Fleet insurance is a specialized insurance policy for businesses that operate multiple vehicles. It enables companies to insure all their vehicles under a single policy rather than having separate insurance for each car or truck. This type of coverage is essential for businesses that depend on a fleet of vehicles for their operations, such as delivery services, construction companies, or transportation firms.

Why Fleet Insurance is Crucial

Fleet insurance helps businesses with multiple vehicles in several ways:

• Cost Efficiency:By bundling coverage for numerous vehicles, fleet insurance often results in lower premiums compared to insuring vehicles individually.
• Simplified Administration:Managing one is much easier than dealing with multiple insurance contracts and renewal dates.
• Risk Management:Fleet insurance can reduce the financial risks associated with vehicle accidents, theft, or damage, ensuring smooth operations.
• Legal Compliance:Many regions require suitable insurance for businesses operating vehicles.
• Driver Flexibility:Fleet policies typically allow any authorized driver to operate any insured vehicle, providing businesses with operational flexibility.

Bundled Policies Benefits

One of the primary advantages of bundling for fleet owners is the potential for substantial cost savings. Businesses can save 10% to 20% on premiums by bundling multiple policies.

Some insurance providers offer multi-policy discounts that can lead to savings of 20% or more. The more policies bundled together, the greater the potential for savings.

Bundling streamlines insurance administration for fleet owners. All vehicles are covered under one policy, making it easier to manage and track. Businesses receive one consolidated invoice for all bundled policies, reducing paperwork and simplifying payments.

Bundling can enhance fleet protection, allowing customized packages that address all aspects of a commercial trucking operation. It minimizes coverage gaps by protecting all vehicles and related risks.

Fleet insurance bundles offer flexibility since owners can tailor policies to cover various types of vehicles, including cars, vans, trucks, and heavy equipment. Coverage can start with as few as two vehicles and scale up as the business grows.

Bundling policies can lead to a stronger relationship with the insurance provider. They are more likely to offer loyal customers with bundled policies personalized support and tailored advice.

Fleet Policy Management

Simplified management is a fundamental benefit of bundling fleet insurance policies. It streamlines operations and reduces administrative burdens in several ways:

Centralized Policy Management

Bundling insurance policies allows fleet owners to manage all their coverage under one policy, making it easier to track and manage. There is only one renewal date and one point of contact, simplifying and maintaining continuous coverage.

Streamlined Administrative Tasks

The consolidation of policies means significant time and effort savings:

• With all coverage under one policy, there's less documentation to manage and file.
• Fleet owners receive one consolidated bill for all bundled policies.
• Businesses must deal with only one insurer, streamlining the claims process.

Enhanced Efficiency

Bundling insurance for fleets contributes to overall operational efficiency:

• It frees up time and resources.
• Reduced risk of missed payments or lapses in coverage.
• All vehicles and related risks are adequately protected, minimizing coverage gaps.

In conclusion, the simplified management offered by bundling fleet insurance policies translates to significant time savings, reduced administrative overhead, and improved business operational efficiency.

Contact Us for the Best Prices on Fleet Insurance!

We are independent brokers here at American Insuring Group. Our agents search the market for the best quality insurance rates that match your needs!

Call us today at (610)775-3848 or online for the best commercial auto and truck insurance rates!

Physical damage coverage for trucks is essential insurance that helps protect commercial vehicles from unexpected events. This coverage includes several important components:

• Collision Insurance: Covers repair costs when your truck is damaged in an accident with other vehicles or objects, providing financial security.
  
  
• Comprehensive Coverage: Protects against a broader range of risks beyond collisions, such as vandalism, natural disasters, and more, addressing non-collision damage.
  
  
• Fire and Theft Coverage: Offers protection against losses from fire incidents or theft, ensuring truck owners can keep their operations running smoothly and avoid financial strain.

Commercial truck insurance coverage ensures truck owners and fleet managers have the necessary support to handle potential damages and maintain business stability.

Here is what you should know about these truck insurance coverages:

Collision Coverage

Collision coverage helps truck owners manage the financial impacts of accidents. It specifically covers repair or replacement costs for a truck in a collision with another vehicle or object or even due to flipping over. This type of coverage ensures hefty repair bills do not saddle truck operators following an accident.

Typically, collision coverage is applicable regardless of who is at fault in the accident, providing peace of mind and financial stability. However, it often comes with a deductible, the amount the policyholder must pay out of pocket before the insurance kicks in. 

Comprehensive Coverage

Comprehensive coverage protects against an array of non-collision-related damages. This truck insurance covers theft, vandalism, fire, natural disasters like floods or storms, and other unexpected events. For truck operators facing various risks beyond traffic accidents, comprehensive coverage ensures financial support for repairing or replacing damaged vehicles without bearing the total cost burden.

Unlike collision coverage, which deals specifically with road incidents, comprehensive coverage is broader, safeguarding trucks against diverse threats that could disrupt operations and result in significant financial losses. Additionally, it provides peace of mind by ensuring continuous operation despite unforeseen events.

Coverage for Fire and Theft

Covering for losses from fire and theft is another component of physical damage truck insurance. It protects against specific, high-risk incidents, addressing the financial impact of damages or total loss resulting from fire-related incidents or theft.

If a truck is stolen or suffers fire damage, this coverage provides financial compensation to repair or replace the vehicle, thereby minimizing disruption to your business activities.

It's especially valuable for truck operators who frequently leave vehicles unattended or operate in high-risk areas. By covering the costs associated with such unforeseen events, fire and theft coverage helps maintain the financial stability of a business, ensuring that operations can resume without significant economic burden. 

Contact Us for Your Commercial Vehicle Insurance Needs!

We are independent brokers here at American Insuring Group. Our agents shop the market to find the best  rates on quality insurance that matches your needs.

Call us today at (610) 775-3848 or contact us online for the best commercial truck insurance rates and coverages!

Truck liability coverage protects against financial losses from truck accidents. Its coverage includes:

• Bodily injury coverage, which compensates for injuries to others.
• Property damage coverage, which pays for damages to others' property.
• A combined single limit provides a single coverage amount for bodily injury and property damage.

Bodily Injury Liability

Bodily injury liability is a critical component of vehicle insurance policies, including commercial trucks, designed to protect against financial losses resulting from injuries caused to others in an accident for which the policyholder is at fault. It covers medical expenses, lost wages, pain and suffering, and even legal defense costs if the other party sues.

This coverage contains two primary limits: per person and accident. The per-person limit is the maximum amount the insurer will pay for bodily injury to one individual. In contrast, the per-accident limit is the maximum payable for all injuries in a single incident. Ensuring adequate bodily injury liability protects the policyholder from significant financial obligations and complies with legal requirements for operating vehicles.

Property Damage Liability

Property damage liability is another aspect of vehicle insurance policies. It provides financial protection if you are responsible for an accident that damages someone else's property. This coverage is essential for truck operators because of the potential for substantial damage caused by larger vehicles.

Property damage liability covers the repair or replacement costs of the damaged property, which can include other vehicles, buildings, fences, and public infrastructure like roads and street signs. The policy specifies a maximum limit per accident, which is the upper limit the insurer will pay. Anything beyond this limit becomes the policyholder's responsibility.

This coverage is indispensable for financial protection and compliance with legal requirements, as most jurisdictions mandate minimum property damage coverage. Ensuring adequate property damage liability coverage minimizes financial risks and protects your business from the consequences of unexpected accidents.

Combined Single Limit (CSL)

Combined single-limit coverage is an insurance policy offering a unified coverage limit for bodily injury and property damage claims resulting from an accident. Unlike split limit policies, which have separate caps for bodily injury per person, bodily injury per accident, and property damage, CSL simplifies coverage with one aggregate amount.

This feature signifies that regardless of the split between bodily injury and property damage, the policyholder has a fixed amount to cover total losses. For example, if a policy has a CSL of $500,000, insurers can use it to cover any combination of injuries and property damage up to that total.

This flexibility benefits truck operators, offering comprehensive protection against varying accident-related costs. CSL is advantageous in streamlining claims processes, providing broader coverage, and reducing the risk of insufficient coverage limits in complex accidents.

Contact Us For the Right Commercial Truck Insurance!

The agents at American Insuring Group specialize in Truck Insurance and are happy to answer any of your questions. Plus, as independent agents, we compare the cost of your coverage among many competing insurance companies to ensure you get the best rate on your insurance premiums.

What you don't know can hurt your business! Call American Insuring Group today at (800) 947-1270 or (610) 775-3848, or connect with us online for answers to all your questions.

Picking a truck insurance policy is important for any truck owner or operator. It ensures protection against various risks and financial liabilities that could occur on the road. The best policy covers the basics and targets your specific needs, such as the type of truck, usage, and cargo. You can select the most suitable insurance by thoroughly assessing your coverage needs, comparing different insurers, and regularly reviewing your policy terms to adapt to changes in your situation.

Start by Assessing Your Coverage Needs

The first step in choosing the right truck insurance policy is assessing your coverage needs. Begin by understanding the different types of coverage available, such as liability, collision, comprehensive, cargo, uninsured motorist, and more.

Consider the specifics of your operation: the type of truck you own, how it is used (long-haul versus local deliveries), and the nature of the cargo it transports. Regulatory requirements also play a significant role, as some types of coverage might be mandated by law. Evaluate your driving history and risk tolerance to determine the level of coverage you need.

Additionally, factor in your budget and financial capacity, ensuring affordable coverage without compromising essential protections. This thorough assessment will lay the foundation for a well-suited insurance policy.

Ensure the Optimum Value and Protection by Comparing Insurers

Comparing insurers confirms you will get the best value and protection from your truck insurance policy. Start by researching various insurance providers, focusing on their reputation, financial stability, and customer service quality. Gather quotes from them to compare coverage options, premium costs, and deductibles.

Don't just look at price—evaluate whether the coverage is comprehensive enough for your needs. Check for additional benefits or discounts, such as safe driver incentives or multi-policy discounts.

Read reviews and testimonials from other truck owners to gauge their experiences and satisfaction. It's also beneficial to consult industry forums or networking groups for recommendations.

By thoroughly comparing insurers, you can make an informed decision that balances cost, coverage, and customer support, ensuring optimal protection for your needs.

Review the Policy Terms Regularly

Regularly reviewing the terms of your policy is essential to maintaining adequate and up-to-date truck insurance coverage. Begin by looking at your current policy to understand its scope, including any exclusions, limitations, and coverage specifics. Life circumstances, business operations, and regulatory requirements can change, making it necessary to adjust your policy.

Mark your calendar with policy renewal dates to prompt a review before automatic renewals. Pay attention to any premium adjustments and ensure they align with your coverage needs. Additionally, update the policy when you buy new vehicles, change driving routes, or modify the nature of your cargo.

Reviewing and adjusting your insurance terms can help you avoid gaps in coverage and ensure that your protection evolves with your business needs, preventing potential vulnerabilities.

Contact us for the Best Prices on Commercial Vehicle Insurance!

We are independent brokers here at American Insuring Group. Our agents shop the market for the best quality insurance rates that match your needs! Call us today at (610) 775-3848 or contact us online for the best truck and commercial vehicle insurance rates!

Choosing the right trucking insurance policy isn’t always straightforward. But this guide is here to help. We provide some tips on choosing the right coverage for your business. 

Assess your coverage needs

The first step is to assess your coverage requirements – the policy considerations you need to protect against the losses you face. 

First, think about the number of trucks you want to insure. Some insurers are better for fleet insurance than others. 

Next, consider the cargo you want to transport (another element insurance policies will sometimes cover). Most policies protect you against standard losses, but you may need to pay more to transport extremely valuable or sensitive items. 

The routes taken and the distances you travel also play a role. The more miles covered on challenging, accident-prone roads, the higher your premiums will be. 

Lastly, consider the size of your business. Sometimes you can get discounts by arranging multiple policies with a single carrier. These reduce overall costs significantly while providing additional coverage. 

Compare insurers

Once you know your requirements, the next step is to compare insurers. This helps ensure any carrier you choose is a reasonable match for your business. 

Start by looking for evidence of financial stability. You want an insurer who can pay you, even if your business experiences heavy losses. Moody’s and Standard & Poor provide ratings information to gauge the health of carriers you might consider. 

Also, check if the insurer offers the coverage options you want. You need a carrier able to protect your firm against the losses it is most likely to experience. Common coverage includes: 

• Bodily injury or damages you cause to others
• Protection of cargo against damage and theft
• Coverage for using trucks out-of-hours (non-trucking cover)
• Physical and collision damage to vehicles you own
• Cover for hauling third-party trailers

Finally, check if the insurer offers reasonable customer service. Call them to see if they answer quickly and deal with you politely. 

If you aren’t sure about a specific insurer, check online reviews to see what other trucking companies say about them. The more positive appraisals you can find, the better the service is likely to be. Most reputable firms have Google and Trustpilot reviews you can explore. 

When comparing insurance, don’t just look at the premiums. Also, consider the factors discussed above. For instance, does the carrier offer enough insurance for your needs? And do they charge large deductibles that might be hard for your brand to afford? 

If there are policy limits, question them. Ask whether the risk of exceeding them is acceptable. 

Reviewing policy terms regularly

Lastly, be sure to review policy terms regularly. Trucking companies sometimes get burned because they believe they have suitable cover when they don’t. 

When you take out an insurance policy, the carrier will provide documents explaining what your policy covers and how to make a claim. Check the small print carefully with each new policy document you receive to ensure coverage remains sufficient. 

Contact us to Start Saving on Truck Insurance!

If you want to get the best truck insurance policy possible, contact our team. As independent brokers, we shop the market to find you the best deal on quality insurance!

So call us today at  (610) 775-3848 or contact us online to start saving. 

Distracted Driving Awareness Month in the U.S. and aims to reduce the number of people killed on the roads every year. The event is valuable for the population as a whole but even more critical for truck drivers because of the sheer responsibility of driving 18-wheelers and the cost of truck insurance. 

About Distracted Driving Awareness Month

Distracted driving affects countless people across the country and kills approximately 3,300 annually (as of the latest count). The related month-long event runs from April 4-8 and encourages drivers of all stripes (including those driving commercial vehicles) to behave more responsibly and ethically to reduce the risk of death and serious injury. 

Put the Phone Away or Pay is a flagship campaign and part of the effort. It reminds drivers how dangerous it is to use the phone behind the wheel and the legal consequences of being caught doing so. 

It also calls on drivers to remind their friends and family to drive safely when they are in the driver’s seat. Relatives, colleagues, and acquaintances should encourage and promote a safe approach to the road. 

How To Avoid Becoming A Distracted Truck Driver

So, what can you do to avoid becoming distracted as a truck driver to minimize collision risk? 

Silence Your Phone And Keep It Out Of Sight

The first (and most practical step) is to keep your phone silent and out of sight. Tuck it away in the back or put it on the glove box to remove the temptation of using it. 

According to NHTSA data, cell phone calling and texting were a factor in 12% of distracted driving incidents that resulted in deaths and 8% of total distracted driving incidents. Consequently, cell phone usage is responsible for more than 1.6 million incidents annually, which is why Distracted Driving Awareness Month focuses on it so much. 

Be careful of using hands-free systems. While they might be legal, they are not risk-free because they can be distracting. 

If you have to send messages, either pull over to the side of the road or get a colleague to send them for you. Don’t try to do it while driving. 

Stay Alert

At the same time, it is essential to stay alert. Make sure that you: 

• Get enough sleep before driving – tiredness can make you drowsy and cause you to fall asleep at the wheel
• Avoid in-cab distractions – Use voice activation to control things like the radio or GPS to reduce the risk of taking your eyes off the road further. 
• Don’t preoccupy your mind with negative thoughts – Excessive rumination can take your mind off the road

Plan Your Trip In Advance

Finally, plan your route in advance and locate rest points along the way. Ensure you set the GPS and climate before setting off. 

Contact us for the Best Commercial Vehicle Insurance Prices!

As independent brokers, the agents at American Insuring Group shop the market to find you the best rates on quality insurance that matches your needs! Call us today at (610) 775-3848 or Contact us online for the best rates on truck and commercial vehicle insurance!

Commercial Motor Vehicle Insurance is more expensive than personal auto insurance, so purchasing a personal auto insurance policy for a commercial motor vehicle may be tempting. That would be a huge mistake because personal auto insurance typically won’t pay out a claim for a vehicle that is considered commercial. This kind of mistake could cost your business a lot of money, and if the accident is severe enough, it could even put you out of business.

Therefore, you must understand if your vehicle is considered a commercial vehicle and that you don’t confuse the FMCSA’s definition with an insurance underwriter’s definition.

Federal Motor Carrier Safety (FMCS) Definition of a Commercial Motor Vehicle

The FMCSA has many rules for what they define as a Commercial Motor Vehicle (CMV), such as hours of service, driver requirements, fees for motor carrier registration and insurance, and employee safety and health standards.

The FMCSA’s definition of a CMV is “a self-propelled or towed motor vehicle used on a highway in interstate commerce to transport passengers or property when” one or more of the following apply:

• It has a gross vehicle weight rating or, gross combination weight rating, or gross vehicle weight or gross combination weight, of 10,001 pounds or more, whichever is greater.
• It is designed or used to transport more than eight passengers (including the driver) for compensation.
• It is designed or used to transport more than 15 passengers, including the driver, and is not used to transport passengers for compensation.
• It is used in transporting material found by the Secretary of Transportation to be hazardous under 49 U.S.C. 5103 and transported in a quantity requiring placarding under regulations prescribed by the Secretary under 49 CFR, subtitle B, chapter I, subchapter C.

Under that definition, a pickup truck, which typically weighs between 5,00 and 7,500 pounds, carrying 1,000 pounds of construction material from the store to the job site is not considered a CMV. However, insurance companies would consider it a CMV.

Insurance Company Definition of a Commercial Motor Vehicle

Typically, an insurance underwriter will define a CMV as a vehicle used for business purposes, regardless of the weight or who owns the vehicle (i.e., a company or an individual). A CMV can be a car, truck, van, or even a scooter.

Here are a few examples of what may be considered a CMV under the insurance underwriter’s definition:

• A box truck or van is used to deliver merchandise.
• A car used to provide rides for Uber, Lyft, or any rideshare company.
• An employee’s vehicle that regularly calls on doctors’ offices to sell pharmaceutical equipment

“If a vehicle is used primarily in business, there is likely no coverage under a personal auto policy. If you use your personal vehicle for work occasionally, your personal insurance carrier might be able to tailor your policy to reflect this usage,” the Insurance Information Institute (iii) explains. “If the vehicle is owned by a business, there will be no coverage under a personal auto policy. A commercial auto policy would need to be purchase.”

Furthermore, iii states, “For a very serious accident or one with a number of injured people, your personal auto policy may not be enough to cover the damages. In that event, the injured parties would likely sue to collect damages from your business.” Therefore, it’s always best to speak with an experienced insurance agent who can help you determine if you need commercial vehicle insurance.

 Lower Commercial Motor Vehicle Insurance Costs

The agents at American Insuring Group can help you determine what type of insurance you need to protect yourself and your business. Plus, as independent agents, we compare the cost of your insurance with several insurance companies to ensure you get the lowest price.

Want to learn more about getting the best insurance at the best price? Call us today at (800) 947-1270 or (610) 775-3848, or connect with us online.