Personal vs Commercial Insurance when leasing on?

What kind of truck?

 

Once leased to a motor carrier; their insurance becomes paramount. I know that class 8 trucks [grown up trucks] need Non trucking Liability, often mistakenly called bobtail insurance, to provide coverage when not under dispatch by the carrier.

Any carrier can offer additional insurance to you but cannot insist you use theirs exclusively.

You also need to remember that the carrier's coverage does not cover any physical damage to your owned equipment.

The carrier's liability covers the public from the damages you may do with your truck but you need some sort of physical damage which you are usually required to keep the lending institution covered.

Guys who paid off the truck often drop the physical damage coverage which can end up being an error when the stuff hits the fan.

Everyone remember that Physical damage is based on the valuation of the unit so every year you need to reduce the amount of coverage as the truck ages.

Makes little sense to pay for coverage on a new tractor with out reducing the valuation when insurance is only going to pay ACV [actual cash value] so a 4 or 5 year old truck, when totaled, will not return the policy valuation but the actual book value.

Many carriers often forget to inform leased owners to reduce the valuation as the truck ages.

OP needs to look at his existing coverage and check if commercial use changes or voids the owner's coverage, the firm wanting commercial coverage may be the better answer.

 

be careful, the insurance company may not allow commercial activities.

 

Arizona and Colorado come to mind. Had issues at the weigh stations with the pilot cars because the pilot cars were required to have proof of commercial insurance, and we got stuck at the scale until they got proof of commercial insurance. I figure if they are required in certain scales, you would be too.