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One thing you will realize early on when shopping for trucking insurance is that one size does not fit all. The type of cargo you transport will determine your coverage needs, risk factors, and premium costs. Whether you are hauling hazardous materials, perishable goods, or bulk liquids, each type requires specialized insurance considerations. Purchasing the right coverage protects the cargo and the business transporting it.

Special Considerations for Hazardous Materials

Hazardous materials (HAZMAT) pose higher risks, and standard trucking policies don't always cover them. These materials include flammable liquids, corrosive chemicals, explosives, and radioactive substances. Due to their potential to cause environmental damage, injury, or even fatalities, federal regulations require carriers to have specific liability limits and undergo safety compliance checks.

HAZMAT transport insurance must include pollution liability, which covers cleanup costs in case of spills or leaks. Additionally, motor truck cargo insurance should be tailored to reflect the high value and potential hazards associated with these loads.

Because of the increased risk profile, premiums for hazardous materials coverage are almost always higher, but the protection it provides is essential for legal and financial security.

Insurance for Perishable Goods

Perishable goods—such as fresh produce, dairy, meat, and frozen items—require timely delivery and temperature control throughout transit. Any delay, mechanical failure, or deviation in temperature can lead to spoilage, which results in significant financial loss. That's why insurance for perishable goods must go beyond basic cargo coverage.

Refrigeration breakdown or spoilage insurance is a must for reefer (refrigerated) truck operators. This coverage protects against losses caused by mechanical or electrical failures in refrigeration units, driver error, or power interruptions. Time-sensitive delivery windows can also increase liability, so insurance policies account for potential penalties due to missed deadlines or rejected loads.

Insurers can require temperature-monitoring devices and regular equipment maintenance to help mitigate risk. Documenting temperature logs and having protocols for backup refrigeration solutions can also support claims in the event of spoilage.

Liquids and Bulk Cargo Insurance

Liquid and bulk cargo, such as petroleum, chemicals, grains, or aggregates, presents its own unique set of challenges. Spillage, contamination, and volume loss due to evaporation or leakage are among the top concerns. Unlike packaged goods, bulk cargo isn't always easily quantifiable or traceable, which can complicate claims.

Insurance for bulk cargo must account for the specific material, whether it's hazardous or non-hazardous, food-grade or industrial. Contamination insurance is essential for food-grade liquids, such as milk or juice, while environmental liability is a significant consideration for those transporting petroleum or chemicals.

Tankers and hoppers also face a higher risk of rollover accidents due to shifting weight. As a result, insurers often mandate stricter safety protocols and offer coverage enhancements for cargo spillage and cleanup. Accurate documentation of load quantities and containment systems is essential for effective risk management and successful claims.

Choosing the right trucking insurance, tailored to the cargo type, safeguards your business. From regulatory compliance to specialized coverage, aligning your policy with your cargo ensures smoother operations and better financial protection on the road.

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!

You might drive a truck for personal errands or operate one for business purposes, but either way, having the right truck insurance is essential. Many drivers assume personal auto insurance provides enough coverage, but that is not always the case. The higher risks involved with business use are specifically addressed by commercial truck insurance, which provides more comprehensive coverage where personal coverage is insufficient. Truck owners can prevent expensive protection gaps by being aware of the distinctions between these two insurance types.

Differences between Commercial and Personal Use Coverage

Any claim pertaining to those business operations may be denied if the contractor only has personal auto insurance, making them personally liable for the resulting costs. In a similar vein, tradespeople, delivery drivers, and landscapers are exposed to greater risks than personal insurance is intended to cover.

The primary difference between personal and commercial truck insurance lies in how the vehicle is used. Personal auto insurance covers trucks driven for everyday activities—commuting, grocery runs, vacations, and family use. Policies are structured around lower risk since the driving is generally limited and predictable.

Commercial insurance, on the other hand, covers vehicles used for business. This includes hauling goods, transporting tools and equipment, delivering products, or driving to multiple job sites. Because business operations often involve heavier loads, longer hours on the road, and increased liability exposure, commercial policies provide higher liability limits, comprehensive coverage options, and additional protections. For example, coverage may extend to employees who drive the truck, or to damage sustained while transporting business property.

When Personal Coverage Isn’t Enough

Relying on personal insurance when using a truck for business can lead to serious problems. If an accident occurs during business use, a personal policy may deny the claim entirely. Even if coverage is extended, liability limits are often too low to handle the cost of injuries, property damage, or legal action that could follow a commercial-related accident.

Consider a contractor who uses a pickup to haul tools and building materials to job sites. Any claim pertaining to those business operations may be denied if the contractor only has personal auto insurance, making them personally liable for the resulting costs.

In a similar vein, tradespeople, delivery drivers, and landscapers are exposed to greater risks than personal insurance is intended to cover. In short, whenever a truck is tied to revenue-generating activity, commercial coverage becomes a necessity.

Switching from Personal to Commercial

Making the switch from personal to commercial insurance is usually straightforward. Insurers will evaluate how the truck is used, the type of cargo it carries, who drives it, and how often it’s on the road. Premiums are typically higher than personal insurance, reflecting the increased risk, but the added protection can save a business from devastating financial loss.

Business owners should also review their policy regularly as operations expand. Adding employees, purchasing additional trucks, or changing the type of work performed may all require policy adjustments. By proactively switching to commercial coverage when personal insurance no longer suffices, truck owners can ensure their business is adequately protected.

Contact Us for the Best Prices on Commercial Truck Insurance!

The independent brokers at American Insuring Group 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!

Truck insurance does not come in a neat one-size-fits-all requirement across the United States. Although federal law mandates minimum coverage for interstate carriers, each state has its own regulations that may go beyond federal guidelines.

The rules establish both the minimum liability coverage requirements for truckers and the need for extra policies like cargo insurance, as well as the methods of enforcement. Trucking companies and independent owner-operators need to understand state-level differences because they must avoid costly penalties while maintaining continuous coverage.

Variations by State

The Department of Transportation (DOT) or equivalent regulatory body of each state establishes truck insurance standards. Different states maintain either federal minimum insurance standards or implement more demanding requirements.

States with dense population centers and busy highways, like California and New York, enforce higher liability coverage requirements. Texas, along with other states, requires specific additional coverage types for cargo types. The application of local laws varies between intrastate and interstate carriers.

The insurance requirements for trucking operations differ between companies that operate within a single state and those that transport freight between states. The Form E or SR-22 serves as proof of insurance, which some states require before issuing a legal operating permit for trucks.

Minimum Coverage Requirements

Federal law requires minimum liability coverage of:

• $300,000 for non-hazardous freight in vehicles under 10,001 pounds.
• $750,000 for general freight over 10,001 pounds.
• $1 million for oil transport.
• $5 million for hazardous materials.

Multiple states across the country establish minimum insurance requirements that exceed the federal standards. Some states enforce $1 million liability coverage requirements for all non-hazardous load operations.

States also enforce different insurance requirements, which include cargo insurance minimums, uninsured motorist coverage, and workers' compensation policies for fleets that employ staff. The insurance requirements differ according to the type of truck, the nature of the cargo, and the extent of operations.

The insurance requirements for logging trucks, tow trucks, and passenger transport vehicles differ because they present distinct risk profiles.

Keeping Up with State Regulatory Changes

State insurance regulations undergo regular changes because of legislative updates, economic conditions, and accident statistics. Your policy needs regular review against current state laws to maintain compliance. Trucking companies should maintain open communication with their insurance providers, who often track regulatory updates.

Trade associations, including the American Trucking Associations (ATA) and state trucking groups, serve as sources for timely alerts. Fleets should implement a compliance management system that operates across multiple states to monitor the requirements of each jurisdiction. The proactive approach helps prevent coverage gaps, license suspensions, and costly fines that result from using outdated insurance documentation.

Contact AIG 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!

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!

Whether you’re heading to work, driving your kids around, or tackling daily errands, there’s a strong possibility you’re surrounded by drivers without car insurance.  According to the Insurance Information Institute, approximately one in seven drivers is uninsured. This is why uninsured motorist coverage is essential—it can cover medical expenses, lost wages, and other costs for you and your passengers if an uninsured driver causes an accident.

Coverage for Accidents with Uninsured Drivers

Uninsured motorist (UM) coverage provides financial protection if you're involved in an accident with a driver who does not have auto insurance. This coverage pays the costs that the at-fault uninsured driver typically pays through their liability insurance. Here's a detailed breakdown:

• Uninsured motorist bodily injury (UMBI) covers medical expenses, lost wages, and pain and suffering for you and your passengers.
  
  
• Uninsured motorist property damage (UMPD) pays for vehicle repairs if an uninsured driver damages your vehicle.

When Does UM Coverage Apply?

• If the at-fault driver has no insurance.
• In some cases, for hit-and-run accidents (varies by state).
• If the at-fault driver's insurance is insufficient to cover damages (this may fall under underinsured motorist coverage).

Without UM coverage, you could face significant out-of-pocket expenses for medical bills or vehicle repairs if hit by an uninsured driver. It can be a financial safety net, especially in states with high numbers of uninsured drivers.

What is Underinsured Motorist Protection?

Underinsured motorist (UIM) protection helps cover expenses when the at-fault driver in an accident has liability insurance, but their coverage limits are insufficient to fully pay for the damages or injuries they caused. Here's an overview:

If you're in an accident caused by a driver with inadequate liability insurance, UIM coverage pays the difference between the at-fault driver's policy limits and your total expenses. For example, if your medical bills are $100,000, but the at-fault driver's insurance only covers $50,000, your UIM coverage can pay the remaining $50,000 (up to your policy limits). Insurers may bundle UIM with UM coverage, but it is distinct in that it applies when the at-fault driver has insufficient rather than no insurance at all.

State Requirements for UM coverage

UM coverage is optional in Pennsylvania, but insurance companies must offer it to policyholders. Here are the key details:

If you choose to carry UM coverage, the minimum limits are:

• $15,000 per person for bodily injury.

• $30,000 per accident for bodily injury involving multiple people.

If you decide not to purchase UM coverage, you must sign a waiver provided by your insurance company.

UM coverage protects you and your passengers if an uninsured driver causes an accident. It covers medical expenses and other damages like lost wages and pain and suffering. Although it's optional, drivers should seriously consider UM coverage because of the financial risks from uninsured drivers. Approximately 7% of drivers in Pennsylvania are uninsured.

Contact Us for Your Commercial Truck Insurance Needs!

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

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!

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.

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.

Commercial Truck Insurance is crucial for protecting yourself and your business. Unfortunately, common truck insurance myths may be costing your business big time.

5 Common Commercial Truck Insurance Myths

1. There's Nothing You Can Do to Lower Truck Insurance Premiums

 This is not true. Insurance premiums are based on risk. Lower your risk, and you lower your insurance premiums. There are many ways to reduce your risk, such as hiring safer and more experienced drivers, providing safety training, properly maintaining your vehicles, and conducting pre-and post-trip inspections. Other ways to lower insurance premiums are asking about discounts, combining policies, increasing deductibles, and working with an independent insurance agent at American Insuring Group, who will compare the cost of your coverage with several insurance companies.

2. Truck Insurance Only Covers Vehicle Damage 

Some truck drivers and trucking companies are under the false impression that truck insurance only pays for repairs or replacement if their truck or trailer sustains damage in a collision. While that is a key part of commercial truck insurance, it can cover much more.

Here are a few types of insurance coverage owner-operators should consider:

• Comprehensive insurance covers damages or losses not resulting from a collision, such as vandalism, theft, fire, etc.
  
  
• Commercial Liability Insurance protects you against loss from legal liability resulting from bodily injury or property damage to another party.
  
  
• Cargo Insurance protects against loss from legal liability for damage to goods or merchandise in your care and custody while in transit. It also provides coverage for things like debris removal and refrigeration breakdown.
  
  
• Trailer Interchange Insurance is available under the trucker's or motor carrier's policy form, which covers the insured's legal liability for damage to the trailers of others. Under the business auto policy (BAP), coverage is also available by endorsement. Under a trailer interchange + agreement, the motor carrier in possession of the trailer is responsible for any damage to the trailer, even if the trailer is not attached to the tractor.
  
  
• Uninsured/Underinsured Motorists Coverage helps pay for damage to your trick if someone hits you and does not have liability coverage.

3. ELDs are Not Required for Small Fleets

Often, smaller fleet owners are under the impression that they can continue using paper logs or other methods to track hours of service (HOS). According to the Federal Motor Carrier Safety Administration (FMCSA), "The ELD applies to most motor carriers and drivers who are currently required to maintain records of duty status (RODS) per Part 395, 49 CFR 395.8(a). The rule applies to commercial buses as well as trucks and to Canada- and Mexico-domiciled drivers." Failing to do so can result in fines, penalties, audits, investigations, and lawsuits.

4. Only Large Fleets and Long-Haul Truckers Need Truck Insurance

Whether you're a fleet of one or one hundred and travel 100 miles or 100,000 miles a day, you are still exposed to risks like accidents, cargo damage, liability, etc. Truck insurance helps protect you, your vehicles, your employees, and your business.

5. Not Having Truck Insurance Can Save You Money

Some people think they can save money by not having truck insurance. After all, you're paying a monthly premium, and who knows if you'll ever need to file an insurance claim. That's a risk not worth taking.

In 2021, there were more than half a million large truck accidents across the U.S., according to Forbes, a 26% increase over 2020. "The good news is the majority of truck accidents do not result in fatalities or even in injuries. A total of 310,000 of the collisions in 2020 involved property damage alone," Forbes states. "Unfortunately, the bad news is, that 101,000 truck crashes caused injury over the course of that year with another 4,444 causing fatalities. Truck drivers and the companies that employ them may be held liable when a crash occurs…"

Without the proper insurance, one severe accident or big lawsuit could put you out of business!

Don't Let Truck Insurance Myths Cost You!

The agents at American Insuring Group specialize in Truck Insurance, so we understand your unique needs, can answer any of your insurance questions, and debunk any Truck Insurance myths.

Furthermore, 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.

Don't let truck insurance myths hurt your business. Call today at (800) 947-1270 or (610) 775-3848, or connect with us online.