What is Hot Shot Truck Insurance?
Hot Shot Truck Insurance is a form of commercial insurance for expedited cargo transportation using pickup trucks. With this type of trucking of business, delivering goods in a timely fashion is critical. It is a speedy business that carries several risks, such as frequent roadway accidents. As a pickup truck operator, it is essential to protect your business with Hot Shot Truck Insurance. This type of insurance protects from third-party liability linked to physical damage and bodily injury you might cause. It also covers physical damage to your truck and driver.
Do I Need Hot Shot Truck Insurance?
Having Hot Shot Truck Insurance is very important. Cover Wallet shares that it is illegal for persons to drive without Commercial Auto Insurance across the US. The clients and freight brokers require specific limits of your hot shot trucking business. This can only be secured with a Commercial Auto policy.
What Are Hot Shot Truck Insurance Requirements?
Let’s say you are just about to start your insurance process or renew it; you will need to meet all the state’s insurance requirements plus those of the shippers and brokers. The popularly requested coverages are:
Cargo coverage: This protects the commodities hauled by For Hire Truckers. Most brokers will ask for at least $100,000 of cargo insurance.
Physical damage coverage: While not required, it is commonly recommended for your truck and trailer.
MCS 90: If going across states, you will need an MC number and the necessary coverage limits to file your MCS 90.
MCS-150 and BOC-3 Filings: They are needed primarily when you recently began your operations.
IRP (International Registration Plan) and Permanent Trailer Identification (PTI): IRP is needed for your truck and PTI for your trailer.
Commercial Driver’s License: Required in some states and lets you pay less for insurance.
Minimum of $1,000,000 in liability coverage: Required by many freight brokers and offer liability coverage for business policies customized to your needs.
What does Hot Shot Truck Insurance cover?
Hot Shot Insurance covers the following:
– Protects truck and trailer from property damage in the event of a vehicle collision. Damage to other vehicles and stationary objects is also included.
– Repairs to truck if you’re in a covered incident
– Medical expenses for injuries due to the accident and lost wages for persons injured
– Protects your truck or trailer from damage caused by vandalism, fire, theft, and other physical damages other than accidents
– Cargo loss or damage caused by incidents such as fire, theft, and collision
– Repairs or replacing the vehicle and other property involved in an accident where you are at fault
– Legal obligations when the service provided causes property damage or injury
How much does Hot Shot Truck Insurance cost?
The cost for your Hot Shot Insurance depends on certain factors, including the deductible of your truck, personal credit score, the limits that your business requires, the coverage needed, the class of truck you drive, and the insurance agent’s rates. Usually, quotes can start as low as $5,000 for each year, and the pricing will depend on the factors above.
