When starting out as an auto hauler, you’ll need to take care of some logistical and operational requirements, whether your power unit is a Pickup Truck or a Truck Tractor.  Of course, insurance coverage is one of them. A well-thought-out, multifaceted insurance plan cover, enables you to offer hauling services with the best possible protection for yourself and your customer against any potential risk of loss.  One area of coverage in particular, and hard to find, is “Diminution of Value” coverage. This specialized type of coverage will close the gap for you if you damage a new showroom vehicle, for the loss of value, since the car is no longer “new”.

Here, we will outline all of the required and recommended auto hauler coverage options to consider as you step into this business.

Automobile Liability coverage

This coverage is mandatory and is normally written with a $1,000,000 limit which is what most every shipper requires. This is the coverage that triggers the required “filing” on the FMCSA website for you. The Federal required limit of $750,000 may not be sufficient to cover a hefty liability claim in the hands of a jury.

Cargo Coverage

As an Auto Hauler, you carry some of the most expensive cargo out there. The most common limit of coverage is $250,000 but depends upon how many vehicles you can haul. Perhaps al you need is $150,000. Higher limits may be available, but again, hard to find , and can be expensive.  If you haul new cars, you may want to consider “Diminution of Value” coverage, a special rider to the Cargo policy. Deductibles are usually $1,000 but higher deductibles are available.

Collision Coverage

Collision coverage takes care of all the damages that your power unit or trailer incurs due to a Collision or Overturn, and including towing charges. Collision coverage in the commercial world is usually written with a $1000 deductible, but higher deductibles are available and may be worth the savings. A good rule of thumb is that if you feel you will not have a collision within 3 years, the savings for a $2500 deductible is a good buy.

Comprehensive Coverage 

As the name suggests, Comprehensive covers damage from any cause except Collision or Overturn. Examples are weather related damage, vandalism, fire, theft, hitting a bird or animal, glass breakage, falling objects. Comprehensive coverage is very broad in scope. If you want to protect yourself from unpleasant surprises, carrying comprehensive coverage is important, and, surprisingly a very low cost product. Some insurance carriers are offering a “combined-deductible” policy where a single deductible is applied to a collision loss involving the Tractor, Trailer, and Cargo in the same accident.

The Service of an experience Insurance Counselor can Help

Apart from those insurance coverage plans, you also need to deal with various state and federal agencies if you intend to haul either intrastate or interstate. The insurance rates for any of the coverages mentioned above can drastically change due to many factors like your hauling radius, garaging location, nature of vehicles that you will be hauling (new, used, or scrap/totaled), your experience as a CDL A  driver, and of course your driving record.

If you don’t want to get overwhelmed by the legalities of all these coverage plans and state and federal documents that need to be filed, consider working with a seasoned Truck Insurance Counselor. Marc Schillinger is a certified insurance counselor (CIC) who has been helping individual and small fleet operators obtain first-time coverage as a specialty, since 2004. As a new auto hauler, you will find that a conversation with Marc will be quite interesting and helpful.

Contact Marc for a free consultation and quote at 561-448-6115 or marc@mschillinger.com