Primary Liability for Truckers

 

Vehicle liability insurance has two components always included together:

Bodily Injury coverage and Property Damage coverage.

Vehicle liability insurance is the basic insurance coverage that covers injuries or damage to other people or property if you're at fault for an accident.



Are You Looking for General Liability Insurance?
General Liability insurance is coverage that protects you against financial liabilities resulting from accidents such as spilling paint on someones carpet or someone slipping on your floor.



If you cause an accident that injures or even kills another person, the Bodily Injury (BI) portion of your Liability insurance will pay for the related expenses. Bodily Injury (BI) will cover hospital and medical bills, rehabilitation, long-term nursing care, funeral expenses, lost earnings, pain and suffering, and other expenses, up to the limits you select.



If you cause an accident that damages another person's property, the Property Damage (PD) portion of your Liability insurance will pay for the related expenses. Property Damage (PD) will cover the expense to repair or replace damaged items, including other vehicles, lamp posts, houses or even a pet, up to the limits you select.



Liability insurance also will pay for your legal defense costs if you are sued as a result of your involvement with the accident.

Who Needs Liability Insurance?
Anyone who drives a vehicle needs Liability insurance. In most situations, Liability insurance is required by law.

For-hire truckers operating under their own authority must have Liability insurance in order to obtain a filing.

Liability Insurance Limits and Other Details
Liability insurance requires you to select limits. These limits determine the maximum amount your insurance company will pay if you need to use the insurance coverage. Limits are described either as split limits or as a combined single limit.

Need Vehicle Liability Limits above $1 Millon?
In certain states, we offer liability limits up to $2 million to satisfy the contractual requirements of some employers.

Split limits are three numbers that describe the following:

Maximum Bodily Injury payment per person
Maximum Bodily Injury payment for all people in the entire accident
Maximum total Property Damage payment for all property in the accident
For example, if you choose split limits of $15,000/$30,000/$10,000:

$15,000 would be the most your insurance would pay each person injured in an accident.
$30,000 would be the most your insurance would pay for all people injured in the accident.
$10,000 would be the most your insurance would pay for all property damaged in a single accident.
With a combined single limit, or CSL, only one number is used to describe the limits for both Bodily Injury insurance and Property Damage insurance. In this case, there is no specific limit per person, just a grand total maximum that will be paid for all injuries and property damage that you cause that result from a single accident.

For example, if you selected a combined single limit of $1 million, your insurance company would pay up to $1 million for all medical and injury-related bills and all property damage expenses that you caused in an accident.

Liability Insurance Example
You can't stop your van in time, and rear-end the car in front of you.

The other car's bumper is damaged, and the other driver has a sprained wrist.

You have a combined single limit of $300,000 for your Liability insurance.



The Bodily Injury component of your Liability insurance would pay the other driver's $1,500 medical bill wrist X-rays.

The Property Damage component of your Liability insurance would pay the $1,000 bill to replace the other car's bumper.


Since you chose a combined single limit (CSL) of $300,000, your total Liability expenses of $2,500 are completely covered by your insurance.



Liability Insurance Exceptions and Restrictions
Your Property Damage insurance limits cannot exceed your Bodily Injury insurance per person limits if you choose a split limit.



Multiple Vehicles
If one vehicle on the policy has Liability insurance, all of the vehicles must have it.


The selected Liability limits must be the same for all vehicles on a policy.


State Minimums
Each state sets laws regarding how much Liability insurance its residents are required to have. This is known as your state's minimum limits or minimum limit requirements.
Classic Truck Insurance 
knows the requirements for each state and will make sure you have at least the minimum amount of Liability insurance required to meet your state's laws.



Filings
Liability insurance is required when a filing is on a commercial auto insurance policy.


Radius Restrictions
Minimum Liability limits of $25,000/$50,000 or a $50,000 combined single limit is required if the radius of operation is 300 miles or more.
Trailers


Extra trailers are charged a flat fee for Liability insurance.

Cargo coverage, more than most insurance products, varies widely among carriers and is notable for what is not covered or what restricts your coverage.

Bodily Injury Liability Insurance

Bodily Injury Liability insurance is always combined with Property Damage Liability coverage to make up the Liability insurance portion of a commercial auto insurance policy.

If you cause an accident that injures other people, your Bodily Injury Liability insurance will pay the amount you are legally obligated to pay for those injuries and related costs, which can include:



  • Hospital and medical bills
  • Rehabilitation
  • Long-term nursing care
  • Funeral expenses
  • Lost earnings
  • Pain and suffering
  • Other damages

As part of your Liability Insurance, Bodily Injury coverage not only protects you from paying for these expenses out of pocket, but also pays for your legal defense if you are sued as a result of your involvement in an accident.

Who Needs Bodily Injury Liability Insurance?


Everyone who drives a vehicle needs Bodily Injury Liability insurance to protect them if their vehicles cause an injury or death to another person. In most situations, Bodily Injury Liability insurance is required by law.



Truckers who operate under their own authority need Bodily Injury Liability insurance to obtain certain filings.



Limits for Bodily Injury Liability Insurance
With Bodily Injury Liability insurance, you must select limits, which determine the maximum amount your insurance company will pay if you must use this insurance coverage. Limits are described either as split limits or as a combined single limit (CSL).



Split limits are two numbers that describe the maximum payment per person and the maximum payment for all injuries in an accident.

For example, if you caused an accident and chose limits of $15,000/$30,000, your Bodily Injury Liability insurance would pay up to $15,000 per person injured, up to a maximum total of $30,000 for all injuries in the entire accident.

With a combined single limit (CSL), only one number is used to describe the limits for both your Bodily Injury Liability and your Property Damage Liability insurance. In this case, there is no specific limit per person, just a maximum total that is paid for all injuries and property damage that result from a single accident that you cause.

For example, if you selected a combined single limit (CSL) of $1 million, your insurance company would pay up to $1 million for all medical and injury-related bills and all property damage expenses that you caused in an accident.



Bodily Injury Liability Insurance Examples
You're driving down the street and rear-end the car in front of you.

Fortunately, no one is seriously hurt, but there are a few minor injuries. The other driver has a gash on her forehead that might need stitches, and the passenger from the other car has a broken arm.



If you selected Bodily Injury Liability insurance limits of $20,000/$40,000, your insurance would pay:

The $500 bill for the other driver's stitches
The $15,000 bill to X-ray and cast the passenger's arm
Since each individual's bills were less than $20,000, and the total for all the injuries was only $20,000 — well below your $40,000 limit — your insurance would pay for everything.



What if the injuries had been more severe, however? If the expenses for treatment had been $30,000 for the other driver and $10,000 for the passenger, the total amount of $40,000 would be covered, but the individual amount for the other driver would exceed your per-person limit of $20,000.



In this case, your Bodily Injury Liability insurance would pay the maximum amount of $20,000 for the other driver and the full $10,000 for the passenger. You, however, would be responsible for paying the extra $10,000 for the other driver's bills.



Bodily Injury Liability Insurance Restrictions
Multiple Vehicles
If one vehicle on the policy has Liability insurance, all of the vehicles must have it.
The selected Bodily Injury Liability insurance limits must be the same for all vehicles on a policy.


State Minimums
Each state sets laws regarding how much Bodily Injury Liability insurance its residents are required to have. This is known as your state's minimum limits or minimum limit requirements.
Fortunately, Classic Truck Insurance knows the requirements for each state and will make sure you have at least the minimum amount of Bodily Injury Liability insurance required to meet your state's laws.



Filings
Bodily Injury Liability insurance is required in order to obtain many filings.


Radius Restrictions
Minimum Bodily Injury Liability limits of $25,000/$50,000 or a $50,000 combined single limit is required if the radius of operation is 300 miles or more.


Trailers

Extra trailers are charged a flat fee for Bodily Injury Liability insurance.


Bodily Injury Liability Exceptions
As with all insurance, there are exceptions to what is covered by Bodily Injury Liability coverage, and these are fairly standard throughout the industry. For instance, no liability policy will protect you against intentional acts.



Property Damage Liability Coverage

Property Damage Liability coverage is one element, along with Bodily Injury Liability insurance, that makes up Liability insurance.



If you ever cause an accident, your Property Damage Liability coverage will pay for the damage done to anyone else's property, whether it's another vehicle, a lamppost, or even a house, up to the selected amount. As part of your Liability Insurance, Property Damage coverage also pays for your legal defense costs if you are sued as a result of these damages.



Who Needs Property Damage Liability Coverage?
Everyone needs Property Damage Liability coverage. Property Damage Liability coverage protects you in case you cause an accident that results in damage to the property of others. In most situations, this insurance is required by law.

If you have a filing on your commercial auto insurance policy, you are required to have Property Damage Liability insurance.



Property Damage Liability Coverage Limits and Other Details
With Property Damage Liability coverage, you must select limits. When you select a split limit, the Property Damage limit is the third number. This number may also be shown separately as a single number.

For example, if you chose a limit of $10,000, your Property Damage coverage would pay up to $10,000 for all of the property damaged in an accident caused by you.



Your Property Damage limit can also be a combined single limit (CSL). In this case, one number is used to describe the limits for both your Bodily Injury Liability insurance and your Property Damage Liability coverage.

For example, if you selected a combined single limit (CSL) of $1 million, your insurance company would pay up to $1 million for all medical and injury-related bills and all property damage expenses that you caused in an accident.



Property Damage Liability Coverage Example
You swerve to miss a deer and accidentally hit your neighbor's car, which is parked on the side of the street.

If you have selected a split limit for Liability insurance, the Property Damage coverage portion would pay to repair or replace your neighbor's damaged car, up to your selected limit of $10,000. Since the car repairs amount to $500, your insurance would cover the full amount of damage.



If you had caused more damage to the car, your Property Damage Liability coverage would pay up to your maximum limit of $10,000 to repair the parked car. If the repair cost amounted to $15,000, you would be responsible for paying the extra $5,000.



If you selected a combined single limit for your Liability insurance, all of the damage would be covered up to the single limit chosen.



Property Damage Liability Coverage Restrictions
Your Property Damage Liability coverage limits cannot exceed your Bodily Injury Liability insurance per-person limits if you select a split limit for Liability.



Multiple Vehicles
If one vehicle on the policy has Liability insurance, all of the vehicles must have it.
The selected Property Damage limits must be the same for all vehicles on a policy.


State Minimums
Each state sets laws regarding how much Property Damage Liability coverage its residents are required to have. This is known as your state's minimum limits or minimum limit requirements.
Fortunately, Classic Truck Insurance knows the requirements for each state and will make sure you have at least the minimum amount of Property Damage Liability coverage required to meet your state's laws.



Filings
Property Damage Liability coverage is required when a filing is on a commercial auto insurance policy.


Trailers
Extra trailers are charged a flat fee for Property Damage Liability coverage.


Property Damage Liability Exceptions
As with all insurance, there are exceptions to what is covered by Property Damage Liability coverage, and these are fairly standard throughout the industry. For instance, no liability policy will protect you against intentional acts.

Commercial Auto Extension

Did you know that your auto liability policy might not cover exposures you assume under a loan, lease, agreement or contract?  Several types of contracts and agreements are not insured contracts and may expose you to unwanted legal action.



  • Two types of common agreements that are normally excluded from your auto liability coverage:



  • A contract or agreeement for the loan, lease, or rental of an auto which requires you to hold the lessor harmless for any liability loss.



A contract or agreement you sign when trip leasing to another trucker which requires you to provide primary liability insurance.



Classic Truck insurance can provide blanket coverage for these two types of contracts by adding the commercial auto extension endorsement to your auto liability insurance policy.  A great value, this endorsement provides affordable insurance protection while you meet that next deadline.

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