Many different types of businesses may require box truck insurance, which is a type of business insurance that covers box trucks and their drivers. From businesses that depend on deliveries, like florists, to businesses that are built on delivering retail goods to the public, affordable box truck insurance is a necessity.
A box truck is a type of cab truck with an enclosed cargo area and a separate cabin for drivers and passengers. They are often referred to by different names depending on what the truck is used for, but their explosion in popularity shines a bright light on the desperate need for affordable box truck insurance.
Here’s what you need to know about box truck insurance.
Who needs box truck insurance?
Any business that uses a box truck in their line of work or as a service is required to carry box truck insurance in all 50 states. Each state has its own minimum requirements for the amount of coverage that is necessary. There are 3 types of coverage that may be required in some combination.
- Liability – Covers injuries to other people and property if you are at fault driving a box truck.
- Motor Cargo coverage – Covers the items you are transporting.
- Physical Damage Insurance – Covers repairs to your box truck after an accident or theft.
Every industry, from movers and wholesale distributors to couriers and furniture delivery companies, is required to carry the proper insurances, including box truck insurance.
The Cost of Box Truck Insurance
The cost of box truck insurance will vary from state to state and between industries. There are many different factors that affect the cost of box truck insurance, including the minimum required state coverage amounts.
Other big determining factors include the value of your box truck and the number of vehicles you’ll be insuring. Usually, more valuable box trucks are more expensive to insure. Of course, having more than one truck in your fleet also means that you’ll be paying more for box truck insurance.
The Cost of Box Truck Insurance
As earlier stated, there are many different factors that can affect the cost of your box truck insurance. These factors include:
- Truck Value
- Number of Trucks
- State Requirements
- Driving Record
- Claim Record
- Goods Hauled
- Company Location
Since every state has different minimum requirements for box truck insurance, it is illegal to drive a box truck without meeting them. If you are unsure of your state’s minimum requirements, you can ask a licensed insurance agent in your state or find them posted online.
Furthermore, box trucks traveling between 2 or more states are subject to the Federal Motor Carrier Safety Administration (FMCSA) requirements which are even more stringent. The requirements set by the federal government are higher than those set by some states. To be safe, many business owners take care to meet those minimum federal requirements.
When Box Truck Insurance Costs Less
Since the value of the box truck affects the amount of insurance you need, box truck insurance typically costs less when the truck costs less. Many times, businesses lower the amount they pay for box truck insurance by purchasing a good used box truck instead of a brand new one. Older model box trucks typically provide substantial savings on box truck insurance.
Most insurance companies love doing business with lifetime or long-term customers. If you have other business equipment or vehicles you may be able to bundle, your insurance company may offer you a discount for doing so. They often offer discounts for bundles on multiple policies or multiple vehicles bundled into the same policy. This could be a consideration to help lower the cost of your box truck insurance.
Other Ways to Lower Box Truck Insurance
There are a few other ways to help lower the cost of your box truck insurance, including paying premiums in full rather than monthly or quarterly. Insurance companies often offer additional discounts for full premium payments. You’ll also want to get quotes from several insurance companies before doing business with one. This will help you get the most coverage without overpaying.
Additionally, consider hiring drivers with good driving records and keeping your vehicles maintained. Regular maintenance helps keep trucks safe, reducing the likelihood of an accident which will help keep the premiums lower for your box truck insurance. You should also consider maintaining driver logs in each box truck.
Consider providing safety training for each driver who gets behind the wheel of your box truck. If your insurance company offers a safe driving app or program, take advantage of it. They often offer a safe driving discount in exchange for using their apps or monitoring devices. It can also help to install anti-theft devices in your box trucks and business vehicles.
The Best Box Truck Insurance for You
Each company offering box truck insurance will have its own underwriting strategy and acceptable risk file. Sometimes it helps to work with an insurance company that specializes in providing box truck insurance. They can often offer specialized discounts and lower rates, but that isn’t always the case.
It’s important to shop around and keep an open mind. Depending on the type of business you run, it may be beneficial to have all your business insurance with the same company and receive a discount for doing so. Sometimes, you can get better coverage and save money by doing business with multiple insurance companies. The only way you’ll know is to get multiple quotes from several different insurance companies and see who can offer the most bang for your buck.
The Best Box Truck Insurance
No matter what type of industry you operate in, there are some things you can do to get the best rates on your box truck insurance. Purchase an older box truck still in great shape and install an anti-theft device. Hire drivers with good driving records and maintain driver logs. Implement a safe driving program and utilize safe driving apps or programs your insurance company provides.