So I’m leased onto a carrier currently and have my own truck that I purchased. (This is my first Owner Operator) I’ve always driven for a company.
So my question is after looking at my pay statement my company provides bobtail insurance, physical damage insurance and occupational accident insurance.
But in the process of purchasing my truck I purchased insurance because i needed it to even drive the truck home and I have my own policy that i purchased for physical damage & NTL.
Can anyone explain these in more depth to me? I don’t understand to much. Am i paying for the same thing twice?
Insurance Questions from new O/O
Bobtail [NTL] is for times when you are not under dispatch, hence the name Non-Trucking Liability.
Usually the cheapest 'cause they deny 99.9% of claims. You will rarely get a claim thru NTL. If you are dispatched to a location, drop the trailer and bobtail; you are STILL under dispatch, don't call it Bobtail Insurance, it can really mess up the insurance adjustment if you give your Bobtail card instead of the carriers card.
In NJ going to have your truck maintained on your day off IS considered to benefit the carrier you are leased with and there is legal precedent, much to the suprise to my isurance carrier over a Body Injury claim the Owner Operator's NTL kicked back to us, go figure.
Physical damage is your comprehensive [Fire, Theft, etc.] and is required by your loan terms.
Looks like you are paying twice to me and need to do something about that.
When you get Physical Damage, you had to name a 'stated value'. Initially this is the cost of the truck and you need to remember this coverage only pays ACV [actual cash value] similar to a 'blue book' price.
The real value goes down each year and if you do not adjust the stated value and lower your coverage cost each year, you will be paying premiums based on the purchase price while your potential recovery amount keeps falling [current covid price surge aside] and only your insurance benefits from your possible overpayment.
As I have had a total loss on my truck not at fault. ACV is based on market value. If you put say a 20k value on your truck and it gets valued at 40k you only get 20k. However if you value it at 40k and the ###### values your truck at 20k you only get 20
It appears y ooi u are paying twice for same coverage. If you have an accident, you will NOT get paid twice. So IMHO you need to dump one of those policys.
Question is which?
First look at the price your paying, and exactly what dollar amount your paying it for.
Talk to YOUR insurance agent. then company safety/insurnace person.
Going thru company is usually easiest. But not always cheapest.
Make sure whoever your truck loan is thru, accepts the insurance you choose. ( Years ago I bought a truck from select trucks and they would not accept the insurance from my agent company)
Compare your leased on companies rates Vs going with OOIDA for your bobtail. Trailer if owned. Etc
I’ve never been a big OOIDA fan for various reasons but their insurance ( in my case ) was a few hundred less per month than where I’m leased to and I added a few extra things like rental and tow. Whatever that will be worth when needed??
You need to know the coverage amounts/cost for each policy. The carrier may get a better price with more trucks in the pot but you need to look beyond price and see what you are getting, if needed, from the policy.
Remember most carriers won't loose money selling you coverage.
Occupational Accident thru OOIDA runs around $145.00 a month. Our provided coverage is priced on 1/3rd of the weekly revenue; owner, driver, and the truck each are considered to earn 1/3rd of the revenue so the only want to pay out to the 'driver' 1/3rd times 11.56% for every 300 they look at 100 and take $11.56 so the more you make the more they take.
do your homework.GYPSY65 Thanks this.