Affordable Truck insurance from right stop insurance

Primary liability insurance

With the movement of goods on the rise within the state and interstate levels, statistics reveal a major rise in the number of truck accidents. The greater the risk, the larger the amount of losses that a company incurs during an accident. To pull down the brunt of the impact, the law requires the truck cargo company to insure itself against mishaps en-route. The primary liability truck insurance offers an umbrella from the damage or injury to the third party as a result of truck accidents.

As the Federal and State agencies has made the primary liability truck insurance mandatory, the fleet owners is required to submit the proof of insurance before operating them. The coverage is typically rated under the scheduled vehicle basis. Where the number of trucks to be operated is high, one can go for an any auto basis that is calculated on the basis of the gross revenue or mileage premium rating method. As it does not call for vehicle schedule changes, it is highly advantageous.

The primary liability insurance coverage varies from $35,000 to $1,000,000 depending on the area, the year of the company in operation and the past records of driving. Legal provisions set by FHWA require the trucks over 10,000 gross vehicle weight to go for the $750,000 policy coverage that generally compares with the state limits. Typically, the amount of premium is higher under the primary liability tuck insurance. But as it results in a saving to the company in the event of an accident, this has become inevitable to cope up with the financial losses that would otherwise incur. The risk is more for the large truck fleeting companies as larger the number of accidents, higher the financial impact.

Share and Enjoy:
  • Print this article!
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Mixx
  • Google Bookmarks

Tags: , , , , ,