How to Think Outside the Box with Box Truck Insurance
TLTR: How much insurance do you need for a box truck? What are the premiums like, and why should you invest in different insurance policies if you’re doing well with just minimal coverage? This article answers these questions and more.
Whether you’re a small-time dispatch-delivery business owner with a single box truck or a fleet owner, insurance is equally essential for your business’s financial safety. You need to be able to make daily business travel plans without worrying whether your business will be all right if something goes wrong on the road.
In this blog
- How Can Box Truck Insurance Save Your Business?
- Types of Businesses Requiring Box Truck Insurance
- Box Truck Insurance Coverages
- Endorsements to Consider with Box Truck Insurance
- How Much Does Box Truck Insurance Cost?
- What Factors Determine the Cost of Box Truck Insurance?
- Top Three Box Truck Insurance Companies in 2021
- Is Box Truck Insurance Worth It?
- Box Truck Insurance FAQs
How Can Box Truck Insurance Save Your Business?
Cost Owl reports that purchasing one box truck will cost you upwards of $25,000. If you’re looking to buy a medium-duty class 6 truck, it will cost you up to $90,000. If you own multiple trucks, you’re quickly shelling out hundreds of thousands of dollars right out of the gate.
Trucks are huge, heavy, and difficult to operate. Due to their size and weight, it’s no surprise that they often cause a lot of damage when they get into accidents.
Some of the most common injuries sustained by truck accident survivors are:
- Back and neck injuries
- Spinal cord injuries
- Brain injuries
- Burns, cuts, and lacerations
Where goods are concerned, you may be held liable if they’re damaged in an accident.
Box truck insurance provides coverage against liability, medical costs, physical damage, uninsured/underinsured motorists, and trailer liability.
Finally, it’s illegal to operate a box truck business without proper insurance! In fact, all truck businesses require commercial truck insurance for their business travels.
Types of Businesses Requiring Box Truck Insurance
Box trucks are a special kind of vehicle that comes in many different shapes, but they all have one thing in common: they’re big. The box truck you see rolling down the street might be specialized for construction work or labeled as an LTL carrier transporting light loads. Box trucks need specialized commercial insurance because the purpose of owning and operating these trucks is very niche. Here are some examples of box trucks:
- Moving Truck
- Sleeper Box
- Reefer Truck
- Ice Box
- Cube Trucks
- Straight Trucks
- Dry Freight
- Medium-Duty Vans
And here are some of the businesses that use box trucks for transporting goods:
- Courier Companies
- Furniture Companies
- Retail Companies
The state you operate from, your liability requirements, and the size of your fleet determines what kind of coverage you need and how much you should invest.
Box Truck Insurance Coverages
Like a commercial auto insurance policy, your box truck insurance covers you against liabilities, property damage, and bodily injuries. So, why not simply get a commercial auto policy? Because it’s not enough. You require box truck insurance because it’s specially tailored to protect you against common perils that specifically concern box trucks.
Let’s briefly discuss what coverage is included in a standard box truck insurance policy.
Minimum liability coverage is required in all states. For example, California requires you to carry liability insurance ranging from $750,000 to $1.2 million, depending on the truck size and goods you carry.
If your box truck gets in an accident with another vehicle on the road, you can be found to be at fault. The driver will hold you liable, and you’ll have to pay for the driver’s damaged car or property. Liability insurance will cover these costs on your behalf.
There are two types of liability coverage:
- Bodily Injury: Liability insurance covers physical injuries that people suffer when they get hurt in an auto accident. Imagine your box truck collides with another car, and the driver and/or passengers have to be hospitalized. Bodily injury coverage will take care of the medical bills, ambulance, and hospitalization costs. It will also cover any medication costs, lost wages, and funeral costs due to the accident if, sadly, it comes to that. Sometimes, burial insurance can also pay for these funeral costs.
- Property Damage: If your truck damages another vehicle, property damage coverage will pay for its replacement or repair costs.
You can decide whether you want a split limit or combined limit policy. With a split limit policy, your insurance company may only cover say, $25,000 for injuries and up to the same amount in property damage. However, with a single claim limit policy, you are given full use of all funds available when making claims.
Medical Payments Insurance
When you drive a box truck, it’s important to have medical payments insurance. This coverage protects your company from having to pay the medical expenses if an accident happens with one of your trucks and if passengers are injured. Medical payments benefits can be paid regardless of who is at fault for the collision.
Physical Damage Insurance
Physical damage insurance will cover your truck from damage in case of theft, fire, or accident. If your truck is damaged beyond repair, your insurance will pay for a replacement. Comprehensive coverage under physical damage insurance will cover you for losses due to theft, vandalism, and other natural disasters. Collision coverage will cover you for losses that occur due to collisions and accidents.
Uninsured/Underinsured Motorist Insurance
Yes, insurance is required by law. Yes, it’s illegal to drive without a driver’s license, and yes, people will still break rules. Some people will carry liability, but sometimes not enough to pay for the full extent of damages that result from an auto accident.
Uninsured/underinsured motorist insurance exists to keep you and your fleet safe from these problems. Let’s say a vehicle collides with your box truck and damages the hood. You ask for their insurance company’s number but find out that they’re not insured. In such cases, having uninsured/underinsured motorist coverage can help you make the repairs.
Commercial Umbrella Policy
All insurance policies have certain limits after which they won’t cover your damage. If you need additional coverage, commercial umbrella insurance can cover the rest of the costs left unattended by your basic insurance.
Endorsements to Consider with Box Truck Insurance
Basic box truck insurance can cover numerous risks and perils. You can just purchase the standard coverage and still be safe. However, the policy has a certain limit and it won’t cover everything under the sun. The cargo you carry determines the some of the risks you’re exposed to. Here are some additional coverage options you should consider purchasing with your basic truck insurance...
Reefer Breakdown Coverage
Some box trucks transport frozen items, which means they also include a reefer. If your truck breaks down during transit, it could lead to your products being spoiled as well. The financial loss could bankrupt your business. Your disgruntled client could sue you for the loss of goods.
Reefer breakdown insurance will cover the cost of damage to the cargo and refrigeration breakdown.
Motor Truck Cargo Insurance
This covers losses to your cargo due to theft, vandalism, equipment breakdown, water damage, and fire. It also covers you against debris removal, pollutant removal, freight charges, expediting charges, and contractual penalties.
A truck breakdown is inevitable. Whether due to harsh driving conditions, old age, or simply bad roads, your straight truck may need towing. Towing insurance covers the cost of getting tow trucks to haul your truck out of a sticky situation.
If you like, you can also cover your business against trailer interchange and non-trucking liability.
How Much Does Box Truck Insurance Cost?
Insurance on box trucks can be quite expensive. However, it’s worth the investment. Think about the maintenance cost for each truck you own to conduct business. If you add loss of income, liability expenses, loss of cargo, legal expenses, and equipment repair and replacement costs, you’re going to be in the red for a long, long time. Compared to that, box truck insurance will only cost you up to $5,000 per box truck.
Of course, every trucking business is unique and comes with a mixture of exposures to risks. Talk to insurance experts for a more accurate estimate for your box truck business.
What Factors Determine the Cost of Box Truck Insurance?
Your overall box truck insurance is determined by the type of coverage you require, your drivers, number of trucks, and more. Let’s take a closer look:
Type of Coverage
If you’re only getting the coverage required by the state, your costs will be quite low. If you’re looking for something totally comprehensive, then you should expect a higher premium. However, we recommend doing neither of the two. Talk to an insurance agent to understand your risks and only get the coverage that makes sense for your particular needs.
For instance, if you don’t have a reefer installed on your box truck, what good will reefer breakdown insurance do?
Your rates may be affected by the age and experience of your drivers as well as their records. If they have a good driving record with lots of trucking experience, you’re going to save on insurance costs because this will show in an MVR (Motor Vehicle Record).
The age, make, model, and number of trucks you own will make a big difference in your policy costs. Usually, the older your trucks are, the more you’ll pay. The same goes with the number of trucks you own. If your truck business operates from a rural region, you will pay for less insurance because rural roads have less traffic.
If you’re carrying furniture and appliances, you could be paying a lot less than if you’re carrying hazardous materials or construction materials.
Top Three Box Truck Insurance Companies in 2021
- Renegade Insurance
Renegade Insurance offers one of the fastest, most comprehensive, and most affordable commercial truck insurance policies in the country. Now available in 46 states, they offer online quotes and insurance experts with decades of experience insuring box trucks. They boast 24-hour availability with after-sales servicing as well.
Progressive covers a milieu of truck owner-operators. With their services available in all 50 states, they’re one of the giants in the game. Great for traditional coverage options, but they may not carry every kind of endorsement options you might like.
Nationwide, despite having low customer service satisfaction, offers affordable box truck insurance with satisfactory coverage options. They also offer online quotes.
Is Box Truck Insurance Worth It?
We’re surprised you even had to ask!
Commercial box truck insurance isn’t just worth it, it’s necessary.
Taking steps to protect and secure your business before you head out on cargo transport will help you stay on top of every distressing moment and every exciting adventure that lies ahead.
If you have any comments about this article, please leave them in the comments section below.
If you’re not sure which is the best coverage for you, get in touch with an insurance agent for assistance. Check out our agent directory to find the best insurance agent for you.
Frequently Asked Questions (FAQs)
Can You Lower the Cost of Box Truck Insurance?
Of course, you can! Here’s how:
- Ask for Discounts
Be honest and unashamed. Your insurance company will likely have multiple discounts and offers available. Check if you qualify for any of them.
- Install Safety Devices
Have you installed airbags, dashcams, or anti-theft alarms for your box trucks? If yes, you can lower your insurance. The box truck insurance cost can be lowered even more if you install other safety devices.
- Raise Your Deductibles
The deductible is the amount of money you pay toward a liability or damage on account of an accident before your insurance kicks in. Naturally, the higher your deductible amount is, the less your insurance amount is.
- Keep a Clean Driving Records
Drivers with squeaky clean driving records are seen as low-risk insurance buyers. Thus, box truck insurance companies can offer lower premiums for you.
- Shop Around
Don’t purchase the first quote you’re offered. Request quotes from at least three different insurance companies and compare them. Look at the prices and coverage options then decide which one best suits you.