Dump trucks are classified as heavy commercial vehicles and as such there are special considerations to take into account when buying dump truck insurance. Insurance agents look at not only the dump truck itself, but how hazardous the materials being transported are, the driving record of the employee in the truck and sometimes even what personal items the employee may have in the cab. Learn the factors business owners must take into account when shopping for dump truck insurance.
Types: Personal and Commercial
Any vehicle, such as a car, pick-up truck, or SUV can be classified as a personal or commercial vehicle. A personal vehicle is for personal, private use and a commercial vehicle is used for business. For example, a person could legally use an SUV for a service picking up people from airports and dropping them off at hotels; that SUV would need to be insured as a commercial vehicle. Dump trucks are classified as heavy commercial vehicles and of course, all owners of commercial vehicles are legally required to have insurance, just as owners of personal vehicles are.
Types: Commercial Heavy Vehicle and Fleet
When a business owns four or more commercial vehicles, the dump truck insurance is referred to as Fleet Insurance. An insurance agent can discuss insuring the "Fleet," meaning all of the dump trucks, in one package. Because dump trucks are commercial heavy vehicles (as are tractors, delivery trucks and others), owners purchase Commercial Heavy Vehicle or Fleet insurance to cover them. Commercial Heavy Vehicle insurance differs from personal auto insurance in what it offers. For example, the cargo itself (whatever you are carrying in the dump truck) will affect the premium. Some companies offer the option of covering personal property left in the dump truck as part of the commercial insurance. It is also noteworthy that some companies will offer to pack physical damage, general liability and cargo along with trucker liability into one dump truck insurance package. Ask questions when shopping around to ensure you hear about all options offered by various insurance companies.
Considerations
Any Commercial and Fleet Auto Insurance company will take specific items into account when calculating a premium. In addition to issues of the commercial vehicle itself, the agent will ask about the employees that drive the dump truck. For example, the driver's age, driving record and driving experience, as well as how long the employee has been driving for you will all affect the premium. How many years you have been in business, what you haul in the dump truck and even where you haul it are also important when figuring what insurance you need and how much you will pay for it. When shopping for dump truck insurance, answer every question as thoroughly as possible. Omitting information for any reason can result in a higher premium.
Benefits of Dealing with Big Companies
Larger insurance companies, such as State Farm, Progressive, and AAA (to name a few) have many resources and are therefore often able to offer all the benefits a business needs into one package, and then offer discounts. Remember to ask the agent about any and all discounts your business may be eligible for.
Expert Insight
Cheaper is not necessarily better. If there is an accident, a fight with a less than reputable insurance company can bankrupt an otherwise profitable business. Shop around and give both large and small companies a chance to sell you dump truck insurance. Don't make quick decisions, and do take the time to compare exactly what is offered by different plans, as well as the cost. And before making your choice, find out what the insurance company's track record is with other commercial heavy vehicle owners for paying legitimate claims.
