Leased Owner Operator Insurance Coverages come in two main categories: Own Authority and Leased Owner insurance coverages. In this review, like the topic says our main focus is on the leased owner option.
Leased owner insurance coverages come into two options: bobtail insurance and non-trucking liability insurance coverage. In this review, we will focus on these two insurance coverages that have been designed to cover trailer business owners.
Bobtail Insurance Coverage
Bobtail comes from the word ‘bob tailing’ which means driving a truck with the trailer detached. Bobtail insurance is liability coverage designed to cover property damage or damages caused to others when the trailer is detached from the truck. Assuming you are driving your truck without a trailer from delivery and you collide onto a building, you will need to have bobtail insurance in your policy to cover the damages and injuries caused.
Who needs a Bobtail Insurance Coverage?
- Truck drivers with their trucks
- Truck drivers leased to a motor carrier
Here are some examples of instance that will require truck drivers to have a bobtail insurance coverage:
- Damages that are caused by an accident on your way back home from a delivery
- Injury or damage that happens on your way to picking a load
- Damages to a property when driving with your trailer detached from the truck
- Or accident that occurs on your way to picking a load after delivering another
However, for drivers with their authority, they do not need to have bobtail insurance. This is because damages and injuries that occur when the trailer is detached are already covered by their primary liability cover.
How to get cheap bobtail insurance?
Getting any kind of insurance is a hectic task. However, it has been made easier by different companies that will provide you with 3 agents that will compete to give your insurance. So if you are looking to get cheaper bobtail insurance use the 3 agent strategy.
It helps you compare policies from different companies and ensure you get the cheapest. Each of the 3 agents will offer you the policy at different prices and from that, you can decide which best suits you.
Other ways of getting cheaper bobtail insurance could include: asking for discounts and requesting for a higher deductible to lower premium cost. However, the higher deductible is not sorted after mostly since the premium for bobtail is cheaper than most of the coverages available.
What is included in a bobtail Insurance coverage?
It covers the following:
- Underinsured and uninsured motorists
- Liability insurance that has a limit of $1,000,000
- The monthly premium between $35 and $60
However, different companies have different prices, the above is the average cost. Ensure that you read through the fine prints of the policy before deciding on the best company to get your coverage.
FAQ on Bobtail Insurance Coverage
1. What is bobtail insurance?
This is a policy designed to pay for truckers who may damage or injure a third party when using the truck when a trailer is detached
2. How much does bobtail insurance cost?
The average cost is $35-$50 monthly premium with an insurance liability of $1,000,000
3. Is there a way I can lower the cost of my bobtail insurance?
Yes, through the 3 agent strategy
4. Who needs bobtail insurance?
All motor carriers under a lease agreement
5. Do I need bobtail coverage if I have my authority?
No, your primary liability policies in most cases will have you covered when the trailer is detached
Non-Trucking Liability(NTL) Insurance Coverage
Since leased owner-operators do not use their trucks and trailers for business purposes only, they need to have non-trucking insurance coverage. This type of insurance has been designed to cover third party damages and injuries when the truck is being used for non-business expedites.
Many if not all truckers need this coverage since at one point they will use their trucks for personal reasons. Therefore, I need to be on the safe side in case accidents or collisions happen during personal use.
It is worth noting that non-trucking liability insurance is sometimes difficult to deal with especially in instances where the driver is involved in a collision or accident on their way home from a dispatch. According to the law, a driver is still under the owner’s authority insurance, when they are on their way home. This made it difficult to claim NTL.
Cost of Non-Trucking Insurance
Non-Trucking insurance’s usual average cost is $29-$50 per month. However, truckers with NTL must also ensure they get physical damage coverage as well. So the cost inclusive of the physical coverage damage ranges from $1,500 to $3,500. Also, the price of the insurance will be determined by the price of the truck you are leasing for business.
Category of Truckers that need Non-Trucking Insurance
Hotshots- most hotshots use their pickup for personal use.
Leased owner-operator since they need the policy to cover out of work expedites.
Temporary insurance- for those that buy lease trucks but need a week or so before starting a business.
How to get the best deal on Non-Trucking Liability Insurance?
Just like most insurance coverages, you need the 3 agent strategy to get the best deal for your NTL insurance. This will allow you to choose, the most affordable and best option from some agents from different insurance companies.
FAQ on Non-Trucking Liability Insurance
1. Who needs NTL insurance?
Truckers under a lease agreement.
2. How much does it cost to get NTL insurance?
The average cost is $29-$50 per month.
3. What is covered under non-trucking insurance coverage?
Expenses for damages and injuries to a third party when the truck is being used for non-business purposes.
4.What are the limits of Non-trucking insurance coverage?
The limits are the maximum amount the insurer will pay for damages and injuries to the third party involved in a collision or accident.
Difference between Bobtail Insurance and Non-Trucking Liability Insurance
In most cases, bobtail and non-trucking insurance are confused to be the same thing. However, they are different. Firstly, bobtail insurance will not cover you when you are driving the truck with the trailer on even without a load being hauled. On the other hand, non-trucking will cover such liability in case of accident or collision.
Non-trucking only applies to instances where the truck is being used for non-business purposes even when the trailer is on or detached. Bobtail will not cover non-business liabilities when the trailer is attached
Every trucker would want to be covered when they are delivering dispatch and also during those trips on their way home or when using trucks for personal errands. That is why, when getting the best insurance, they should include bobtail and non-trucking liability insurance. These insurances have been designed to cover third party damages and injuries that happen when trucks are used for a non-business errand or when the truck is used with the trailer detached.