While it’s important to get the most out of your trailers, protecting your assets is crucial for long-term planning. You don’t want to wonder if an adequate insurance plan covers you when something goes wrong. Here is a guide on understanding commercial trailer insurance.
What Is Commercial Trailer Insurance?
Commercial trailer insurance is a plan that covers your asset in the case of a natural disaster or accident. What would you do right now if your trailer was crashed into by another vehicle that lost control on the road? Are you covered if you want to rent a trailer to increase capacity for a lane? Do you know how to insure a trailer?
Many states require some coverage, and insurance is generally a good idea to have in place for business purposes. An expensive repair due to an accident could tank your company’s profits if you have to pay for the repairs out of pocket.
Who and What Is Covered With Commercial Trailer Insurance?
Refrain from assuming your plan covers you, your drivers, or your assets. You need to understand exactly what is covered, so there are no surprises if anything goes wrong. Never let your trailer be used by someone who doesn’t have the right rental or borrowed trailer insurance to cover their use, or you could end up stuck footing the bill.
You might want to get semi-trailer insurance that goes beyond the trailer itself and covers any damage to the cargo. Pay close attention to how the deductible is applied so you don’t owe more out of pocket if you have multiple liabilities.
What Types of Trailers Are Covered With Commercial Trailer Insurance?
Search around to find the right commercial insurance plan for your trailer type.
- Flatbed trailer
- Utility trailer
- Dry freight trailer
- Auto hauler trailer
- Bulk commodity trailer
- Concession trailer
- Pole trailer
- Tank trailer
What Are the Different Types of Commercial Trailer Insurance?
Always browse policies, talk to your agent, and read your policy to find the right deal. Here are a few of the things your business trailer insurance could cover.
Liability Coverage: Trailer liability insurance offers minimum coverage when you cause an accident and need insurance to cover the other vehicle involved.
Collision Coverage: Pays for the damage to your trailer and not the other vehicle involved.
Comprehensive Coverage: Pays for damages that occur on-site and not just on the road—like vandalism, theft, or fire.
Cargo Coverage: You can get coverage to pay for damage caused to the goods you are hauling (exemptions may occur for products like tobacco or alcohol.
Debris Removal Coverage: If you ever need to clean up a trailer spill after an accident, then you know this is no joke. You can get insurance to cover the cleanup if an accident occurs.
Unloading/Loading Damage Coverage: Usually, people hurry to get goods on and off the trailer. But what happens if the cargo is damaged during the loading time? This kind of insurance covers goods from damages that might occur on the loading docks.
Earned Freight Coverage: Not only can you cover lost and damaged goods, but you can also cover the profit you would have gotten for delivering them. With earned freight coverage, you can get back lost income if damages or loss occurs regarding the cargo.
Combined Deductible: Ideally, all expenses that occur in an accident will be applied to your deductible. You don’t want to find out your minimum is applied to each kind of coverage and pays for them individually.
What Is Not Covered With Commercial Trailer Insurance?
In most cases, commercial trailer insurance isn’t cover any property damages or injuries that were intentional or expected by you. Your insurance will probably not cover anything that falls under workers’ compensation insurance. And your trailer insurance will most likely not cover non-owned vehicles or rental drivers.
What Variables Impact the Cost of Commercial Trailer Insurance?
Many different factors will impact your insurance costs. Here are a few of the basic things that change the commercial trailer insurance expense for your business:
- Number of units/assets covered
- Driving history (a clean record shows a lower risk)
- Experience and commercial driving history
- How much do you want to cover with your policy
- The amount for your deductible (higher deductibles cost less)
- Your payment plan (yearly often helps you save money)
- Type of tractor and age of trailer
- Age of driver and location
- The insurance company you choose
Ideally, you want a great price with a high level of coverage. Sometimes, a business may choose to get the minimum coverage for an older trailer or not be worth as much to cover. Insurance will help you cover the cost of the trailer value, so you may not want to pay more than the required amount of insurance if your asset isn’t worth a lot. Getting property coverage is a good option for those with valuable assets. It’s extremely important to have extensive insurance if you are still paying for your trailer.
How Much Does It Cost To Insure Commercial Trailers?
There is a wide range of prices for covering your commercial trailers, largely depending on factors like what company you choose and how much coverage you need. You might pay anywhere from $2,000 to $4,000 per year for trailer insurance.
While some companies (like Elephant) are known for fast claims, others (like Progressive and State Farm) are known for their diverse policy options. It’s great to talk to an agent who can help you compare different companies and similar plans to find the best price.
How To Choose the Right Insurance Policy for Commercial Trailer Rentals
You might feel like shopping around is a huge hassle, but it could save you a lot of money. You will want to get quotes from at least three companies to get a good idea of what is reasonable. Start by asking about bundling options from wherever you already have business or tractor insurance—you might get a better deal by adding a new policy.
As you look at prices, search for reviews to get a feel for how reliable and convenient insurance companies are when there is an issue (not all of them will support you in the same way). Online quote comparison tools can give you a good starting point with a quick side-by-side analysis.
How To Get the Best Rate When Negotiating Commercial Trailer Insurance
While liability is required, not all trucking companies have to cover their own assets with insurance policies. You don’t need to feel pressured to say yes to a bad deal as you show around. And, while the price is a key point, don’t let cost be the only deciding factor on your coverage.
Check any policies to see if restrictions or strict guidelines might impair your business (like a specific unit age limit or driver requirement). Ideally, you want to work with an insurance agency with a proven record of supporting businesses similar to yours.
How Tech Platforms Like vHub Use Strategic Partnerships To Provide the Best Rates for Commercial Trailer Insurance
We know how important it is to find the right insurance and pay a fair rate. That is why vHub partners with Reliance Partners
to provide trailer insurance. With a partner on board, you get the best rates with important features—like gap coverage and shipper’s interest coverage.
One simple click is all it takes to get the process started. Feel free to price shop and ensure you get the best deal. With Reliance Partners, you get a customized and structured plan based on your unique needs.
What’s at Stake if You Don’t Choose the Correct Commercial Trailer Insurance?
Without the right coverage, you could risk your entire business. One huge cost from an accident could leave you with no way to cover costs and continue driving.
But what you paid for the vehicle often doesn’t align with market value, meaning your insurance could still fall short with all the “right” numbers plugged in. If your vehicle increases in value over time, your initial coverage might not be enough to cover the cost of an accident.
Underlying exclusions with co-insurance penalties are another thing that could end up biting you during your time of need. And rentals throw another wrench into the situation because you could be liable for court costs, law suites, personal injury, and more. You need insurance that is calculated correctly and considers rising prices.
Discover the Benefits of Choosing the Right Commercial Trailer Insurance
Insurance can be a true business saver, regardless of who caused the accident or damage. With the right policy in place, you can reduce the hassle and cost of a disaster. vHub helps you connect with industry insurance experts, so you are fully protected. Sign up for vHub today and optimize your business by increasing asset utilization and reducing expenses.
