Personal vs Commercial Insurance when leasing on?

Discussion in 'Questions From New Drivers' started by Kobayashi, Nov 11, 2024.

  1. Kobayashi

    Kobayashi Bobtail Member

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    Question on Insurance. Non-CDL, looking to lease onto a company but 1 company they say I dont need commercial auto insurance for my truck and I can be on personal auto insurance will do, they said they cover insurance cargo/load etc....doesnt seem right to me but asking? Then some other company are saying they require insurance and can offer me $350 a week commercial auto.
     
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  3. Ridgeline

    Ridgeline Road Train Member

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    What kind of truck?
     
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  4. Kobayashi

    Kobayashi Bobtail Member

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    Ram 3500 dually
     
  5. wis bang

    wis bang Road Train Member

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    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.
     
  6. Kobayashi

    Kobayashi Bobtail Member

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    Nov 11, 2024
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    Appreciate the response, so technically/legally I can run on full coverage personal auto insurance while hotshotting loads leased onto a carrier company?
    As the full commercial auto million/100k cargo quotes are thru the roof expensive ($17K year) may as well get my own MC if I have to pay this much..
    Will running on personal auto insurance leased on be legal/compliant if during any weight station inspections?
     
  7. Ridgeline

    Ridgeline Road Train Member

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

    TripleSix God of Roads

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    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.
     
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