The Five Reasons Why You Need to Get Truck Insurance Today
Even if you have truck insurance, it may only cover a fraction of what you think. Keep reading to find out all the reasons why insurance for your truck is so important.
Accidental damage to your truck or injuries to yourself and others can be serious.
A compulsory third-party (CTP) insurance product isn’t always enough to cover your needs, and many drivers choose to get extra coverage. Comprehensive coverage can mean the difference between an inconvenience and a total disaster.
Despite their reliance on their motor vehicle, many drivers in Australia don’t get the coverage they need. Data from 2014 shows that about a third of drivers don’t check their coverage when renewing insurance.
Most drivers, the studies found, had many incorrect assumptions about their coverage. Around one in five drivers wrongly believed they had coverage against damage caused by an uninsured driver.
For many owner operators, their vehicle is their livelihood. Don’t risk your truck with inadequate commercial motor insurance.
Here are the top reasons why you should make truck insurance a priority.
Reason #1 – Damage to Your Truck Can Get Very Expensive
In an accident, the damage to your vehicle can be significant. But that’s not all.
If you’re in the wrong, you could be liable for more expenses. You may also be responsible for the damage caused to other vehicles in a chain reaction.
Moreover, any third-party property damage resulting from the accident can get tacked on to the bill. Unless you have comprehensive coverage, this can potentially cripple your finances.
Add to that the lost time that the truck may need in the repair shop. You could be looking at thousands of dollars in opportunity costs.
Some drivers also mistakenly think that their truck isn’t worth insuring for much. This is particularly true for drivers of older trucks.
But remember that even the oldest truck can decimate a top-of-the-line Mercedes. If you’re at fault, it would still fall on you or your insurance to pay for it.
Reason #2 – Injury to Yourself and Others
Loss or damage to your truck is one thing, but there’s also bodily harm to consider.
In the event of a serious accident, you or others may be seriously injured. The resulting medical costs could be very high and ongoing, depending on the injury.
While your CTP insurance could be enough to cover for damage to your truck, it may not be enough for your medical expenses.
A Victorian law firm’s client learned this in the worst way possible.
She was driving when a dog ran out onto the street forcing her to stop. A drunk driver struck her from behind resulting in injuries to both of her legs.
Her injuries were so severe that the local hospital had to fly her for urgent care at a medical centre in Melbourne. She couldn’t leave the hospital for months and was unable to work.
The medical costs rose up to over half-a-million dollars. The driver who hit her only had the minimum insurance coverage of 20,000, and her insurance didn’t come close to covering her costs.
This story is tragic, but what’s more tragic is that it was avoidable if she had better coverage.
Reason #3 – There’s a Lot More Than Just Accidents
Accidents on the road aren’t the only source of damage to your truck.
Consider all the other situations where the minimum compulsory insurance isn’t enough to pay for damages. Theft or vandalism to your truck and natural disasters are all realistic and present threats.
Unless you have comprehensive coverage, you’re exposed to many things that you may not even be considering. Even if you’re the best driver in the world, that won’t save you from all possible eventualities.
Reason #4 – Your Lender May Require It
If you took out a loan to buy your truck, the bank may require you to have comprehensive insurance.
There’s not much wiggle room in this case. If the lender requires that you have additional coverage, your only real option is to comply or risk losing the truck.
The Types of Insurance
There are many auto insurance products to choose from and it can be a challenge to find the perfect one.
Before getting into the types of truck and mobile plant insurance, it’s worth going into some general advice.
It’s smart to include transport insurance as well as vehicle insurance when purchasing. Damage to your load is a common source of unwanted expenses.
Also, make sure you read all the terms and conditions thoroughly and the relevant product disclosure statement. That’s the only way to be certain about what is and isn’t covered.
Remember that all insurance products come with limits in terms of the dollar amount covered. If you feel that the default limits for property damage and bodily injuries aren’t enough, you can always ask for more.
The types of auto insurance include:
- Third-party property damage (TPPD) insurance, which covers damage caused by you to other people’s cars or property.
- Third-party fire and theft insurance covers everything TPPD covers plus any damage to your vehicle from fire and theft.
- Comprehensive insurance covers just about any way that your truck can get damaged. It’s the most complete type of auto insurance, recommended for truck drivers who drive for a living.
Trucks are like any other business vehicles. When shopping for insurance, try contacting business insurance providers. Look for packages tailored to the transportation industry.
Don’t settle for the first insurance quote you get. Getting an online quote takes minutes and can save you a lot of money.
A Little Coverage Goes a Long Way
No matter the kind of truck you drive or its carrying capacity, the right insurance is crucial. Settling for the minimum compulsory insurance is not a good idea for any vehicle, but trucks in particular.
The damage that a truck can cause can easily bring an owner operator to financial ruin. Moreover, it’s an important source of income that can be waylaid for weeks by an accident.
Getting the right insurance doesn’t have to be too complicated. As a rule of thumb, insure for the worst-case scenario you can imagine.
Your best option is an insurance policy designed with truck drivers in mind. Learn more about truck insurance on our website or contact us for more information.