A car carrier operation is a unique business to insure as it can range from small operators with a single transported vehicle to a large fleet of semi-trucks hauling up to 15 cars. A regular trucking insurance policy will not be able to fully ensure these types of operations and will ultimately leave the operations with considerable insurance gaps.
We have compiled a few key points to help protect your car carrier operation and a few items that are unique to car carrier auto insurance programs.
Mistakes Happen – Car Carrier insurance protects you from at-fault accidents
You might be the best driver on the road, but mistakes can happen and car carrier trucking liability is able to help you pay for accidents that are your fault. Commercial car carrier trucking liability covers your operation for injuries or property damage you’ve inflicted on others.
- Bodily Injury – pays for medical bills, transports to hospital, and care to others.
- Physical Damage – pays out to the third party for the cost of repairs, replacing a vehicle, or damage to property from an accident.
Car carrier insurance protects your operation from others who are not insured or underinsured
You’re on the road every day with your car carrier trailer and you’ve done your job to fully insure your operation, but that doesn’t mean that everyone else has done the same. The statistics say that one in eight drivers are uninsured, which is 13% of drivers on the road! Uninsured and Underinsured liability coverage will help protect you if you are unlucky enough to get into an accident with one of these drivers.
- Uninsured Motorist – can pay for injuries and property damage in an accident with an uninsured driver.
- Underinsured Motorist – can pay for injuries and damages when the driver you have an accident with has coverage that cannot pay the full amount of the claims.
Liability insurance doesn’t cover damage to your car carrier rig or trailer
After looking at your trucking liability premium, you may think that it has to cover the damage to your rig and trailer. But, it doesn’t. Liability only covers third parties and if you do not buy physical damage coverage for your operation you will be left paying out of pocket for the damage. To pay for the damage, you will need collision and comprehensive physical damage coverage.
- Collision Insurance – covers damage to your rig or trailer caused by contact with another vehicle or object
- Comprehensive Insurance – covers damage to your rig or trailer that is not caused by a collision i.e. theft or fallen tree limb
Coverage for your cars being transported is an additional policy
The most important aspect of your car hauler operation is the cars you are transporting, and there are a lot of potential issues that you have to provide coverage for in your insurance program. This includes:
- Damage while loading or unloading the vehicles
- Striking a load with a low overpass
- Diminished value of the damaged transported vehicles in case of an accident
- Income lost when a load cannot be delivered
These are just a few examples of the type of incidents that need to be covered for your precious cargo.
Be aware of insurance carrier rating factors that can increase your insurance premiums
Do you have a list of items that you should do in your daily life? Like, honor thy father or mother? I am not saying the insurance carriers are on the level of your parents, but you should always be aware of key rating factors that could exponentially increase your insurance premiums.
- Driver experience
- Age of your truck and trailer
- Safety rating and insurance loss ratios
- Motor Vehicle Reports
The more you haul, the higher the cost of your insurance
The cost of your insurance is a major factor in your operation’s cost of doing business. If you are a single auto car hauler with a heavy-duty truck, your costs of insurance will be exponentially lower than a semi-truck operator hauling up to 15 cars. The following factors will be looked at by your insurance carrier.
- Value of your loads and the number of vehicles being transported
- Radius of travel
- The area that you travel – the carrier will look at bad weather patterns and density of the local population
Your insurance broker can help you navigate the insurance requirements for car carrier insurance
Working with an insurance broker that specializes in car carrier operations is invaluable. They will be able to save you a premium on your insurance program and be able to provide ample coverage to cover your hard work in case of a claim.
When looking to obtain the proper insurance for your car hauling operation at a competitive price, be sure to provide all of the necessary information upfronts. It doesn’t help anyone if you refrain from the whole truth. Contact Truck Insurance Pros for a car carrier insurance quote today.