Everything You Need To Know About Truck Insurance In Australia

Understanding how truck insurance in Australia works is important. It helps you get adequate coverage while cutting down on costs. 

It doesn’t matter whether the truck you own is for personal or business purposes. The fact is, Australian truck owners and drivers need to have their vehicles covered by insurance.

The reality is that getting adequate insurance coverage solves a lot of problems down the road. And yet, people shy away from getting one because they think it’s not necessary. Or, some may get their trucks insured, but believe they’re fine with one basic coverage. 

They find out too late that it’s not enough.

It’s true that truck insurance can be quite hefty in the pocket. And it actually costs more than car insurance. However, you need to remember that there are more risks associated with operations involving trucks. So, it’s an investment that’s well worth the cost.

That being said, there are ways to cut down on insurance costs and still get adequate coverage. It all depends on your knowledge of the subject.

With the right information, you’ll pick the right truck insurance and it won’t put a hole in your pocket.

Why You Need Truck Insurance

There are several reasons to justify why you need to get truck insurance. But there are three in particular that you need to be aware of. 

Reason #1. It Protects Your Investment 

Buying a truck is a financial investment. And by getting this investment insured, you protect it against the daily risks it faces on the road. It gives you confidence that you’re covered if it gets damaged. 

But that’s not all. 

There are insurance policies that offer cover for goods being transported with the truck. That means if the goods get lost or damaged while inside your vehicle, your truck insurance protects you from the resulting debt. 

Reason #2. You Can Get Financial Support During Tough Periods

If you are going through a tough period, insurance can soften things up. 

Downtime insurance, in particular, is designed to keep your business going even if you cannot use your truck. The funds you get can help you cover truck repayments and other costs. 

Reason #3. It’s a Legal Requirement

You have a legal obligation to get insurance coverage for your truck. Failing to do so means you’re breaking the law. 

And the costs of the fines and other fees you’ll have to pay for are way higher than the premium you have to pay for your truck insurance.

Truck Insurance Coverages and Their Costs

There are different types of truck insurance. Here are the four types you should consider getting. 

• Primary liability insurance

This covers you for damages you might incur when driving. It costs between $5,000 to $7,000 for semi-trucks.

• Physical damage insurance

This covers any physical damage the truck may sustain via collision, theft, or even adverse weather conditions. It will set you back between $1,000 to $3,000. 

• Occupational accident coverage 

This compensates you for work-related injuries sustained from operating the truck. This covers medical bills and reimbursements for income missed as a result. It costs between $1600 to $2200.

• General liability insurance

With general liability insurance, you get covered if your vehicle is damaged by someone else. It also covers anything not included in your primary liability or physical damage insurance, such as additional injuries or property damages caused by the accident.

The cost for this type of insurance is often between $500 – $600. 

• Umbrella policy 

This policy is mostly taken by business owners. It offers coverage for worker’s compensation, auto liability, as well as general liability. Typically, it costs between $500 to $700. 

Other insurance coverage you may consider include: 

• Cargo coverage. This offers coverage for the cargo the truck is carrying while involved in an accident. 

• Bobtail insurance for independent truck drivers. This covers you when driving a bobtail truck under someone else’s trucking liability. 

• Underinsured motorist coverage. This provides cover for when you collide with an uninsured vehicle that is 100% at fault. 

• Non-trucking insurance. This gives you coverage for when you use a business truck for non-business purposes.

• Trailer interchange policy. This policy provides coverage for trailers being pulled under a trailer interchange agreement. The trailer interchange agreement is a contract that governs conditions between two truck drivers for trailer delivery to a location.

The price of truck insurance depends on the type of truck and the insurance company. That’s why you should seek professional help on what coverage you need before you get a quote.

Yearly truck insurance used to cost between $9,000 to $15,000 for those with a good driving record. However, truck insurance prices have recently gone up. And depending on the coverage and your driving record, you may expect to pay up to $30,000. 

If you are leased to a motor carrier, the cost of truck insurance is between $2000 and $4000. 

How To Reduce Your Insurance Costs

It’s possible for you to cut down on insurance costs. To make it happen, you should understand the factors insurance companies consider before giving a quote. 

Here are the five essential factors:

1. Business location – Different states have different pricing methods.

2. Cargo – The type, size, and weight of the cargo you carry affect your quote. Heavier and more dangerous cargo increases the risk of accidents or damages, so they attract higher costs. 

3. Driver driving history – Truck drivers with a clean driving history get better deals. Having a few traffic violations or speeding tickets could add hundreds of dollars to your quote. 

4. Type of truck – Heavier and more powerful trucks are more expensive to insure. Lighter trucks move easily and are less likely to get involved in accidents, so they won’t cost as much to insure.

The cost of the truck also matters. Expensive trucks have expensive parts and repairing them is costly. Hence, they have higher premiums. 

5. Operating radius – Insurance companies charge more for trucks covering longer distances. Travelling for long distances makes the driver more tired, which increases the risk of an accident and attracts higher quotes. 

As you can see, there are several things you can do to cut down the premiums on your insurance quotes.

The biggest one is by having a clean driving record. So, undergo training that can help you avoid accidents, speeding tickets or any other traffic violations. Having a Commercial Driver’s Licence helps, too. 

Another thing you can do is to pay your annual premium in full. If you can afford this, it will help you save money in the long run. 

Get the Right Truck Insurance Coverage

There are many insurance policies that you can get for your truck. Among the most recommended are general liability insurance, primary liability insurance, physical damage insurance, and operational accident coverage. 

Keep in mind that the cost of these insurance policies depends mostly on the driving record of the truck driver. 

That’s why you should strive to ensure that you or your truck drivers have a clean driving record. It could be the reason why you’ll spend a couple of thousand dollars less on insurance. 

If you are interested in becoming a trucker or would like to learn more about truck insurance in Australia, visit Truck Dealers Australia.