Car accidents happen all the time and if you’re a car hauler, it’s critical to have insurance. Because of how often you’re driving, the chances of getting in a car accident are higher.
Insurance protects you from huge monetary losses. The good news is there are many options available depending on your insurance requirements.
To help you learn more, this is everything you need to know about car hauler insurance and its requirements.
Why Car Haulers Need Insurance
Car hauler insurance is required by most companies. It’s important for car haulers to have insurance because you carry a lot of value with you when you’re driving. Because you’re hauling multiple vehicles, you’re carrying a lot more value than other drivers.
Because of this added value, an accident for a car hauler costs much more money than most other types of car accidents.
Car Insurance Requirements
Most car hauler companies will require that you have a specific amount of insurance coverage. This ranges based on the type of cargo you’re carrying. It’s usually anywhere between $150,000-$500,000.
The specific car hauler insurance requirements will be stated in your contract. It must adhere to all legal requirements in your state.
Different Insurance Coverages to Protect Car Haulers
Commercial auto insurance will provide some coverage if you’re in an accident, but there are gaps. To cover these gaps you may want to consider more options.
This includes cargo insurance, trailer coverage, trailer interchange insurance, unattended vehicle coverage, and auto hauler diminished value. Cargo and trailer insurance provides coverage to repair damaged cargo and trailers.
Trailer interchange coverage provides coverage for trailers owned by other people and unattended vehicle coverage covers vehicles that are damaged when left on their own. Auto hauler diminished value covers the value lost when your vehicles are damaged.
If you’re carrying cargo that is hundreds of thousands of dollars, you can also customize your insurance to match this cost.
Car Hauler Insurance Costs
The cost of car hauler insurance will vary based on the insurance plan and the amount of coverage you have. Driving history and business location will affect the cost significantly.
To ensure you’re getting the best rates, be sure to ask around and get multiple quotes before committing to anything.
Now You Know All the Main Insurance Requirements for Car Haulers
These are all the main insurance requirements for car haulers and why it’s so important that drivers have it. Without insurance, your drivers are at a huge risk for lawsuits and other legal problems.
The rates of car hauler insurance will differ based on the driver and their driving history. The safer the driver, the lower the cost will be.
And remember, insurance is not something you should take lightly. It may seem costly, but the cost of not having insurance is much higher. It’s always better to be safe than sorry.
To learn about more topics related to insurance, head over to the rest of our blog. We have a ton of other great articles that you’ll love!
