What is Short Term Truck Insurance?
Understanding Why You Need Short-Term or "Temporary" Insurance
Are you a driver thinking about purchasing a truck and becoming an owner operator? Or an owner operator thinking about getting your DOT operating authority?
There are certain hard to find commercial truck insurance policies that fit situations in the work life of the trucker that surely would make your life a little easier if you knew what to ask for and how it fits into your overall business circumstances.
The short-term drive-away commercial truck insurance policy makes for a special value for you, the trucker. It's a very narrow policy, but in the right circumstances it is by far the cheapest and most efficient option.
So why is it so hard to find short-term policies?
The policy is so inexpensive by comparison with traditional liability insurance that most commercial truck insurance carriers hardly think it is worthwhile compared with the overall risk exposure of the high policy limits of $1,000,000 Non-Trucking Liability, Bodily Injury, and Property Damage coverage.
What Really Matters
What really matters to you as a purchaser as you begin to select your truck insurance retail insurance agent is to select an agent that will offer you good advice and solid information about short-term commercial truck insurance as an option. The truck insurance specialist that strives to offer you options that make your work life a little easier is the one you want to choose to do business with.
The Short-Term Policy
There are a variety of offers for short-term coverage in the market today. The best value based policy is described here in this article. You can purchase commercial short-term truck insurance for a policy period of 30 days on a tractor/power unit GVW of 26,001lbs and up.
Understanding the USE of the Short-Term Policy
This policy stipulates you cannot engage in that part of commerce where you the insured are under a dispatch order, have a load on your truck, laden as directed by bill of lading, moving cargo for hire, for yourself and/or pri- vate carrier movement.
The purchase of the temporary policy provides credible insurance coverage in order to move a power unit over the roads legally is compliance with DOT, FMCSA, lien-holder or loss-payee (financial institution or individ- ual). For example, you may move about over the road for truck purchase, provide main- tenance, striping, lettering, repair, and after market applications prior to establishing your permanent insurance. The Short-Term/Drive- Away insurance policy is universally accepted throughout the transportation industry. It is a convenience temporary policy.
Most Common Problem(s)
• A problem that is always in need of a good remedy is getting over the road to a fleet recruiter to apply for work prior to signing a permanent annual lease under a motor carrier fleet operator before you establish permanent insurance.
• Be aware, non-trucking liability, commonly known as a Bobtail policy insuring agreement does not cover claims that occur prior to a permanent executed contract with a motor carrier. Therefore while you are visiting around to establish work prior to signing a motor carrier contract as a lease on operator if you do not have permanent insurance and what you have is Bobtail (NT), then probably you do not have insurance that will respond to a claim. Most people are unaware of this fact.
• Getting your newly purchased tractor over the road after your purchase from a dealer or individual and you have not made arrange- ment for purchasing your permanent insur- ance.
Purchasing short-term insurance will solve these two problems. Certainly Short- Term/Drive-Away coverage has wide appeal.
Other industry market place vendors and pro- viders understand the important application of this useful insurance policy as a “tool” for their tool box in implementing their over all sales strategy such as:
• Small and large truck dealers
• Small and large fleet recruiters • Equipment finance entities
Purchasing short-term insurance is a win-win solution. You have the piece of mind that more time allows you prior to making important less hurried decisions. You can move about over the road knowing you are properly covered by an appropriately purchased policy and are covered for your temporary circumstances.
You can get your truck home, work on your truck, go see a recruiter. But remember that main limitation of this policy. You are prohibited from engaging in commerce by carrying cargo (any kind of freight) until you have arranged and have begun your perma- nent insurance.
We Know Truckin’
In an effort to better help the Trucker with meaningful solutions. We are expanding our specialized services to exceed the customer demands by offering such a “tool kit” policy such as Short-Term/Drive-Away coverage. We are looking out for the success of your trucking operation. Absolutely the best value for you!
For more information visit our site at www.shorttermtruckinsurance.com
Article written and contributed by... Classic Truck Insurance, Inc. www.classictruckinsurance.com Major Temple Scalf President CEO