Box trucks, commonly called straight trucks, are utilized in the transportation of large items, including appliances and furniture. These commercial vehicles come in varying sizes and are lightweight.
What Kinds of Businesses Need Box Truck Insurance?
Every business that uses box trucks is required to invest in commercial truck insurance coverage. Typical industries include courier and delivery services, wholesalers and distributors, and retail operations.
With the explosion of eCommerce and online shopping, more and more businesses now provide delivery services and may require box truck insurance. These types of businesses depend on the use of box trucks for successful deliveries, including florists and bakeries.
The most common types of box trucks include moving, ice box, tilt cab, sleeper, reefer, and cargo cutaway.
What Is Box Truck Insurance? What Does Commercial Truck Insurance Cover?
Box truck insurance is a type of commercial auto insurance for companies that use straight trucks or box trucks.
Box truck insurance offers coverage similar to standard auto insurance but includes additional options tailored to these vehicles. Typical plans include liability, collision, non-trucking liability, comprehensive, and cargo insurance.
Requirements For Business Owners And Contractors
If you operate short-haul trucks, you typically work within a 150-mile radius and return to the same location daily. This local work is appealing to drivers who want to be home by dinner.
The type of authority needed depends more on the cargo than the distance. Interstate authority is required for interstate shipments, even within the same state. The FMCSA mandates auto liability insurance to obtain an MC authority.
Many motor carriers use independent contractors with permanent leases. If you're an owner-operator, your Motor Carrier's authority might provide primary liability insurance. However, you may still need contingent coverage and physical damage coverage for your vehicles. Various insurance options are available for for-hire trucks.
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What Types Of Coverage Do Box Truck Operators Need?
Liability is the most often seen form of state-mandated auto insurance and includes coverage for bodily injury and property damage. Bodily injuries relate to injuries suffered by pedestrians and other drivers as the result of accidents caused by trucks. Property damage relates to damage to personal and commercial property as a result of accidents caused by trucks.
Collision helps provide compensation for the repair or replacement of a box truck in the event of any damages received by accident.
Cargo insurance provides a safety net if any items carried are damaged in the middle of transportation. The cargo undergoes a custom evaluation for the type of commodities hailed and the shipper's requirements.
Comprehensive insurance coverage pays for the repair or replacement of a box truck in the event of damages received by non-collisions, including vandalism, fire, or theft.
Non-trucking liability provides coverage for box truck drivers when they are not currently working or on a dispatch mission.
Reefer breakdown protects if a refrigerated tractor-trailer breaks down due to temperature control issues resulting in mechanical failure. This coverage provides insurance for cargo losses.
Uninsured motorists insurance covers damages to trucks or driver injuries sustained by accidents caused by third parties without sufficient insurance coverage.
How Much Does Box Truck Insurance Cost?
On average, the cost of box truck insurance is approximately $125 per month or $1,500 per year for a general liability coverage worth $1 million. Aside from additional factors, the classification of the truck determines the cost. Most box trucks are either 16-foot or 26-foot.
Extra insurance may be necessary to bolster protection, depending on several variables. Average box truck insurance costs are as follows:
- Primary liability policies for commercial box truck insurance are $5,000 per year or approximately $416 per month.
- General liability policies run at an average of $300 per year or approximately $25 per month.
- Cargo insurance policies run at an average of $1,750 per year or about $145 per month.
- Physical damage coverage policies run at an average of $500 per year or about $42 per month.
- Workers compensation policies run at an average of $3,000 per year or about $250 per month.
Factors That Affect The Cost Of Commercial Truck Insurance Policies
- High-value box trucks demand more expensive insurance because their repairs and replacements cost more. Similarly, commercial truck insurance prices spike if a truck is older.
- The total number of trucks a company is carrying increases the risk of loss. Consequently, you will need to pay for more coverage to protect a larger investment.
- Urban areas have more traffic, which inevitably leads to a higher rate of collisions. If your trucking business is stationed in towns or cities, insurance premiums on box trucks will be higher.
- The more radius you travel, the greater the probability of breakdowns and crashes. Premiums may increase regardless of your business location, especially interstate.
- Fragile, expensive, or perishable items also contribute to higher premiums. Contracts that a business has with clients can determine the cost of commercial box truck insurance.
- If a company has a clean loss record, the data and details may be enough to convince an insurance provider to lower premiums.
How To Find Cheap Box Truck Insurance?
No matter where you shop around, you'll find that box truck insurance is costly. Fortunately, though, there are ways to save to protect your funds.
- Always maintain a clean driving record for driving if doing things yourself. Furthermore, always make sure your drivers have clean track records.
- Mandate the use of driving logs.
- Enroll in safe-driving programs for monitoring and alerting. Safe driving reduces premiums.
- Provide best practices and safety training.
- Compare multiple quotes to find ideal insurance rates.
- Provide regularly scheduled maintenance on your vehicles.
Use G&G Independent Insurance to compare insurance rates in Arkansas. For the best prices, get a quote or call us today. Our specialists review your unique insurance requirements and recommend plans that protect your company and drivers.
