truck insurance mistakes to avoid

5 basic truck insurance mistakes to avoid

Rookie Truck Driver Mistakes While Buying or Renewing Vehicle Insurance Policy!

Owning a commercial vehicle comes with an extended burden of responsibility to get your vehicle insured. Commercial truck insurance policy is required for any goods carrier vehicle. Whether you are an Uber driver or a truck pilot, your commercial vehicle is an integral part of your business. So, what are some of the rookie mistakes you can avoid at the time of your truck insurance?

We have you covered with our top five tips that can help in securing the best vehicle insurance for your yellow-plated vehicle.

Compare, Compare and Compare!

Weighing all your options is always a good idea. When you buy a new commercial vehicle, let’s say a mini truck for your transportation service business, you check all the aspects of its ownership. Truck insurance is an important part that must not be left behind. 

These days, several insurance cover options are available at your disposal that protects your truck from any unforeseen damage. Insurance platforms have several tailored options for you, be it road accidents, damage due to natural calamities, or personal injury.

The key to getting the best cover at a reasonable price is to compare different insurance covers. Make sure to choose the one that suits your requirements.

Have a Look at the Claim Settlement

So, you’ve got the cheapest insurance cover of all. Must be feeling victorious, right? We are sorry to burst the bubble, but you may not have gotten the best deal. Many commercial vehicle owners do not know the nuances of insurance coverage. The settlement ratio of the company that provides motor insurance is a crucial part of getting a decent deal. Many companies have a bad reputation when it comes to insurance settlements.

Do your research before finalizing the deal for your commercial vehicle, bought with your hard-earned money. Anything above a 96–97% settlement ratio is a green flag. You may not get the cheapest deal, but insurance companies are providing several additional benefits if you choose a good one.

Timely Renewal

Your truck insurance is nearing its expiration date and luckily you didn’t need the insurance claim. You might be contemplating not renewing it as it costs a lot of money. This is a black hole that may lead you to a very unsettling place. It’s important to have truck insurance covered at all times. 

You don’t want to take any chances when it comes to your vehicle’s safety. Increasing cases of rash driving, natural calamities, and road accidents are testimonials to the profound need for vehicle insurance.

Renewing your commercial vehicle insurance on time eases the pressure of not being fully secured when you are driving.

Opting for Minimalistic Coverage:

Any commercial insurance serves to cover financial concerns in the event of unfavorable circumstances. The need to adhere to local law is another reason why truck insurance is necessary. Owning a heavy four-wheel vehicle, such as a truck, requires a must-have Third-party liability insurance coverage. With this plan, you can get a limited level of coverage, and is, therefore, less expensive than the Detailed Plan.

You will be able to comply with legal requirements if you choose limited insurance in the form of TLP, but your insurance needs won’t be met. An Own Property cover is not provided by such a cover. It won’t offer any support if you damage your own automobile, but it will help you if you damage someone else’s. A Detailed Plan, which costs more than the TLP, is required for that. 

But isn’t that what an insurance policy is really for? How to guard against financial loss for your company in the event that your truck is damaged? Give it some thought.

Facing Add-ons Imbalance

The improved coverage and services that add-ons offer come at an additional cost. They can enhance your claim payout, escalate your level of convenience, or just waste a lot of money. The latter occurs when purchasing add-ons together with a Detailed Plan is not done with much consideration.

Overspending on add-ons might considerably increase your premium. Moreover, choosing none could lead to insufficient coverage. There is an additional imbalance in this area. Analyze your truck insurance needs before making a decision. A Roadside Assistance Add-on is essential, for instance, if you are worried about what to do if your truck smashes in the middle of the road.

For vehicles that are pretty recent to five years old – a Zero Depreciation Add-on, which eliminates depreciation computation during claim settlement, is advantageous. In contrast, if your driver is alone and accompanied by no coworkers, a Passenger Cover Add-on is a waste.

Final Words

Don’t skip the above-listed points if you are running a company that relies significantly on trucks and are seeking commercial truck insurance. These can help you save a lot of money while providing ways of coverage for medical expenses and property damage in the event that you are found to be at fault for the accident or in the event you are not.

Moreover, we would like to suggest you have transparent communication with your insurance provider company and ask about the coverage aspects in detail and then make a sound decision.

We hope that we answered all of your questions. In case of any doubts, feel free to leave a question in the comment box. We are happy to help you!

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