Those who pursue a life on the road as a truck driver have a couple of options: work for a company or become an owner-operator. When you work for a company, the truck you operate belongs to the owner of said company. That means everything from maintenance to logistics is the responsibility of the company. You get more time with your family and friends and have plenty of options for companies to join.
When you work as an owner-operator, the semi-truck and equipment that you use are yours. That means you may have more responsibility, but you also have more control of your business as an owner. You can also make more money than when you’re simply an operator for someone else’s company.
Do I Need Owner-Operator Coverage?
All states require some kind of primary liability coverage. Most people refer to this as minimum coverage. That means you may not be legally required to carry additional insurance for your vehicle. At the same time, owner operators who do not have the appropriate insurance could violate a contract or simply be at risk.
Commercial liability insurance is used to pay for damage or injuries caused by an auto accident. If you work under a permanent lease, your motor carrier will most likely cover you under their liability policy while you are under contract.
If you operate on your own authority as an owner-operator, you may need to add additional coverage to protect your truck and equipment. If something happens while you do not have insurance, you could be held personally responsible. That could mean paying for legal fees, physical damage, and more. This is why insurance for commercial truck owners is crucial.
How Do Owner-Operators Get Paid?
Since there is more money to be made as an owner-operator, you might be curious just how truckers get paid. When you work for a trucking company, you typically get paid by the mile, hour, or job. You do work, you get a check. It’s pretty straightforward. Owner operators don’t get paid in such an easy manner.
How much they get paid is impacted by their expenses. Indeed.com suggests that independent operators gross an average of $183,000 per year. Sadly, many private owner operators also put nearly 70% back into expenses.
Independent truckers are typically paid by mileage or by a percent load. Percent load programs pay between 25% to 85% of the gross load revenue. These programs can be hard to plan as they pay wonderfully for high-paying loads, but not as much for low-paying alternatives. Mileage programs mean you make a certain amount regardless of how much the trucking company makes on the delivery.
Make More Money By Saving on Your Trucker Insurance
If you own a semi-truck and work as an owner-operator, you need different kinds of commercial truck insurance coverage than those who simply lease their commercial vehicles. From working under your own authority to operating via a permanent lease, SoCal Truck Insurance can not only ensure that you have ample coverage, but that you can also keep your insurance prices low.
What Types of Commercial Owner-Operator Insurance Coverage are Available?
There are various types of commercial insurance for truckers available. Your coverage and exact needs may depend on your unique situation. Give us a call to talk to one of our seasoned professionals and truck insurance experts to discuss the best options of coverage for you.
Here are some of the most common types of liability insurance options you should consider:
If You Operate Under Your Own Authority
Primary liability pays for damage that you cause to other people or their property, including relief for both bodily injury coverage and property damage coverage.
Physical damage is used by owner operators to cover damage that is caused to their trucks or equipment.
Motor truck cargo coverage insures the property you hail in case it is damaged or stolen.
If You Operate Under Permanent Lease
Non-trucking liability covers you when you use your truck outside your contract or dispatch. Non-trucking liability is considered the “personal use” type of insurance.
Physical damage helps fix or replace your truck if it’s involved in an accident or is stolen.
Trailer insurance helps cover a trailer that you pull that does not belong to you. This insurance policy works with a trailer interchange agreement.
How Are Owner-Operator Insurance Costs Determined?
The cost of motor carrier insurance coverage is determined by a variety of factors. Ultimately, your commercial truck ins provider has to assess your risk to provide an accurate quote. Of course, the best way to get a precise cost for motor carrier insurance is to call and get a free quote and consultation.
Here are some of the most significant elements that trucking insurance companies use to determine the cost of your owner operator insurance coverage:
- The type of vehicle being insured, taking into consideration its age, maintenance records, and more.
- Where the truck is located and what kind of delivery routes you take.
- The operator’s driving history.
- The trucking types of coverage you want/need.
Save Time and Money: Call Today
Whether you are starting a new life as an owner-operator or you’ve been under contract for years, there’s no better time to explore options for the best and least expensive insurance for trucking. The owner operator truck insurance you choose will play a significant role in your business.
We customized and design truck insurance policies build around your needs. Get a no-obligation quote and find ways you can save. Call SoCal Trucking Insurance today for your free quote and consultation.