The term Hot shot Trucking Insurance used to refer to insurance coverage for heavy super-duty pickups that expedite the hauling of freights. They are different compared to standard rigs. For instance, a company that needs to accelerate the delivery of its equipment can use hotshot trucks. Hotshot trucks are for expedited emergencies or shipment carrier that require less than an hour.
However, over the last few years, it has become a very demanding and competitive business, necessitating the need to understand the insurance requirement. Hotshot truck businesses must have hotshot trucking insurance.
#1. Coverages Available for Hotshot Truck
There are several insurance coverages for hotshot trucks in local state. Here is detailed information about some of the coverages available:
In case of fire, theft, or collision, this coverage will be helpful, especially if the load is damaged. The goods can suffer damages that need to be covered.
This coverage comes in two options: property damage liability and bodily injury liability. The coverage ensures it covers you if you are at fault and legal expenses need to be covered. Property damage liability will cover replacements and repair of the other driver’s car while the bodily injury liability will cover the cost of the other driver’s medical bills.
This kind of coverage ensures that in case of an accident, you need to cover medical costs. However, this kind of coverage will include the costs.
It comes in two options: comprehensive and collision coverage. Collision coverage has been designed to protect your trailer and truck when involved in an accident or a crash. The complete option covers damages due to fire, theft, and any other costs which are not collision.
This coverage will help you when you cannot deliver loads due to accidents
This will help in paying for downtime costs in case your truck is damaged in an accident.
Whenever your car is totalled, and you owe more on your loan higher than the value of the vehicle, this coverage will come in handy.
Family Emergency Expenses
If you are injured when you are away from home, this coverage will pay up to $2,500 for expenses incurred for family travel.
#2. Limits and Deductibles
According to many shippers and the recommendation of the insurance policy, the legal limit for cargo insurance starting from $100,000. However, when hauling cargo whose value is higher than $100,000, you should get additional coverage. Restrictions on other coverages are based solely on other insurers and the blankets. Deductibles are different. The higher the deductibles are, the lower the premium. Please go through the respective terms before find your desired policy.
#3. Hot Shot Trucking Requirements
Requirements vary depending on different factors, brokers, shippers, drivers, and states. But here are some standard requirements:
- Physical damage coverage for your truck and trailer
- Cargo coverage to protect commodities being hauled.
- Permanent Trailer Identification for the trailer and International Registration Plan for the truck
- A commercial Driver’s License (CDL)
- BOC-3 and MCS-150 for beginners
#4. Cost Modifiers
Hotshot truck insurance costs vary depending on different factors. Some of these factors are:
- The kind of coverage
- Deductibles your truck has
- Nature of your business/industry
- Class of truck driven
On average, insurance costs as low as $5,000 each year. However, this figure differs based on the kind of business you run. Each business requires a unique type of coverage.
Also Read: Dollar A Day Insurance
#5.How To lower cost of hot shot trucking insurance
If you want to lower the cost of the coverage, you must start work that you have a Commercial Driving License (CDL). Especially CDL with experience will ensure you pay less on your insurance.
However, the best way to lower cost is to ensure you have different agents to discuss claims so that you can come up with the lowest price. Also, explore the option of getting a discount to reduce your cost.
#6. Cost of different required coverages
Different coverages have different costs depending on the kind of prices they cover. An earned freight cover is cheaper than an auto liability coverage.
load broker and shipper will need $1,000,000 of debt before they can release a load
will require $100,000 cargo limit. However, this may differ depending on the load broker and shipper
Physical damage coverage
it does not have a specific amount, because most of the insurers will assess the kind of haul damage caused and determine how much is needed.
The best way to lower hot shot truck premiums, the cost is to get three quotes from different agents. This is because finding the best quote on your own turns out to be a complicated task. With three quotes, agent for an insurance company will be pitching to compete for you to procure their services
#7. Hotshot insurance sample quote
Fleet size:…………………………………………………..3 trucks
Equipment Value (truck and trailer)………….$89,000
Commodities hauled………………………………….Perishable goods
The number of claims in the past five yea….One
Pay Plan……………………………………………………..15 instalments each @ $1,600
#8. Hot shot companies to lease on with
You can lease with any of the following hot shot companies:
- Cheetah hotshot company
- ACME Truck Line Hotshot Company
- Houston Hotshot Trucking Company
- JF Express Fr8, Marysville-Ohio
- Spectrum Brand Hotshot Trucking Company
- Hazel’s Hotshot Company- Houston, TX
What kind of insurance should I procure for the hotshot trucking business?
– There are different insurance coverage. The choice will depend on the nature of your business and different requirement by shippers and brokers.
Do I need hotshot insurance?
-Yes, it is a must, because it is illegal in many states to expedite freight without insurance.
How much does it cost for hotshot insurance coverage?
-There is no definite price for hotshot insurance because different coverage cost differently.
What are the requirements?
– Some of the commonest requirements are Physical damage coverage for your truck and trailer, Cargo coverage to protect commodities being hauled.
Do I need to have a Commercial Driving License to offer hotshot services?
– Yes, it is a necessity.
How can I lower the cost of my hotshot insurance?
– The best way to lower cost is to ensure you have different agents to discuss claims so that you can come up with the lowest price. Also, explore the option of getting a discount to reduce your cost.
In the insurance, is the driver covered in case of an accident or collision?
– Yes, the driver is covered in the course of accidents or collisions.
Do I need hotshot coverage?
Based on the coverage option above, you cannot afford to miss having one of these coverages. Most of the time paying for damage costs due to accidents, thefts, and vandalism would be difficult if one does not have insurance.
You also need insurance for your shippers and brokers. Finally, it is illegal to expedite freight without insurance in many states.
If you are a hotshot truck owner, whenever you are on freight, your commodity is deemed to face risks. Some of the risks could be accidents, collision, theft, and vandalism, or even one’s fault. It is therefore essential for you to ensure you get the best hotshot insurance for your truck and trailer.
In getting insurance service, ensure you get three agents. This will help ensure that you get the right and affordable insurance company for you.