Commercial truck insurance offers protection for the vehicle, the loads in it, and anything else that it could hold. If something occurs to your vehicle, like a flat, you commercial truck insurance would pay for the repair to your vehicle. If you owned a fleet of trucks, you would be able to get a discount for having multiple insurance policies with one company. With all these benefits, it is no wonder that many people are considering a commercial truck insurance quote.
Before getting an insurance quote, however, you have to make sure that you are asking the right questions. For example, when you are calculating the cost, you have to make sure that you have the right kind of coverage. Ask yourself such questions as, what are the weight of the cargo, how long will the load stay in the truck, and will the load need to be moved around at some point? Also, when is the delivery due, and how often will the truck need to be moved?
Once you have done your research on how to get started with a successful trucking company, it is time to consider financing. One common option is through financing provided by the government. Another option is through securing loans from banks and other lenders.
One option available to you for obtaining startup truck financing is through FMCSA. The Federal Motor Carrier Safety Administration, or the FMCSA, regulates the motor carriers in the United States. If your company meets the guidelines that the FMCSA has set forth, then you can get a ticket number, which you give to the carrier, to start operating. The ticket number is a promise to pay for any losses that your company incurs while in operation. To be accepted into the program, you have to submit proof of your business operations to the carrier.
As for which company you should use, check out what type of insurance they offer. Not all trucking broker companies sell all types of insurance, but most do. Make sure that the coverage offered covers everything that you will need to protect your business. If there are additional options, like vehicle replacement coverage or even medical payments coverage, make sure to ask about those as well. The more options you have, the better.
One of the biggest items you will need to purchase in addition to insurance is a complete set of documents called a manifest. This will list all your goods for pickup, as well as the loading and unloading as well. Manifests will also cover important items such as the loading dock, the truck, and the cargo itself. The manifest should provide comprehensive information about your operations, including payroll and hours worked. You will also need to purchase a non-driver’s license if you are hiring new drivers, as well as insurance for both driver and cargo. Many states require these types of insurances for new trucking brokers.
Another item that you will need to purchase in addition to insurance and other forms of protection is a loan. Usually, loans are secured with collateral, which can be either your trucks, real property, or equipment. You will want to make sure that your lender is capable of providing you with the appropriate amount of money for your start-up. Many lenders will only lend money to someone who has a good credit history and has been making on-time payments for several years. A poor credit history indicates a risk of non-payment, so it is in your best interest to maintain a good payment history with your lender.
The lender will also require you to purchase trucking insurance, whether you are a new trucking broker or a long-term customer. Most insurance companies require at least PIP insurance, but some go much higher than that. To find an appropriate amount of coverage, make sure that you understand the terms of your quote. Many insurance companies will only cover a percentage of your total cargo loss or have a very high deductible. If your business is in a high-risk area, you may want to consider raising your deductible to get the best rates possible.
