You may be searching for cheap insurance near you. Finding affordable
rates, or general insurance near me, does not mean you
have to sacrifice quality of coverage.
This philosophy reigns true whether you live in Anaheim CA,
or anywhere in Orange County, California.
If you are in the auto business, your needs may vary,
but paying the lowest premium down shouldn’t.
You should have both options at the right price.
Each industry has many different layers.
The trucking industry has many components that you as
an operation business or an independent trucker will experience.
The General Insurance Coverage
You are looking for commercial truck insurance to protect your investment.
Just as you have California car insurance for your personal needs.
You as a driver, are engaged in the business of transporting goods,
regardless if your driving radius
is in Orange County CA or Los Angeles CA.
Operations and Goods of Transport
This is a very important area to look at as a mover. It is what you are moving that
determines your occupation or job classification to some degree.
This holds true whether you are looking at
insurance coverage or employment.
The General Insurance companies are one entity that will use
your cargo as a rating factor for your insurance policy.
So, without further ado, let’s look at some of the occupational types
or classification of driver you will be,
depending on the goods you transport.
These goods, commodities or raw materials
for others can include:
- household goods movers,
- owner operators,
- unregulated fleet carriers,
- or practically an other type of trucker who engages in the transporting of goods for hire.
For Hire Truck General Insurance Coverage
As you can see, the keyword in the above statement is for hire.
Normally, private carriers that exclusively haul their own products
would not be considered an independent trucking firm.
It should be pointed out, that more and more private carriers
are applying for common or contract carrier operating authority.
This authority can be found under the label of Toto Authority.
This is named after the ICC decision concerning the purchase
of the Toto and Supply Company back in 1978.
Private Carrier Insurance Companies?
However, up until 1982, this authority had not been often used.
Since the ICC had required that a private carrier’s entire parent
corporation be subject to the same strict securities and regulations.
With the onset of deregulation of the industry back in 1980,
this authority became more realistic and much more commonly used.
In fact the Insurance Services Offices or ISO has recently
recognized the expansion of this category.
This was done by introducing a new auto form called
the motor carrier coverage form.
Motor Carrier Form?
This form records the standard policy to handle the needs
of private carriers that also act as a common or
contract carriers on a part-time bases.
You will normally encounter this such hauling
under one of the following below methods:
- Compensated Inter company Hauling – This is where the private carrier will haul interstate cargo for the sister companies of that common or contract carrier.
- Trucking Subsidiary – This is where a subsidiary is formed to haul for both the parent company and outside shippers
- Owner Operators – This program is where a private carrier obtains ICC authority, then hires independent truckers to haul for them under their authority instead of that of a company.
- Trip Leasing – Where a private carrier trip leases their trucks and drivers to other ICC carriers that need extra capacity for a particular haul.
The General Big Deal
The significance of private carriers should not be overlooked when reviewing this industry.
Out of the 1.7 million over the road freight trucks registered in the United States today.
Out of this number, only about 300,000 of these are operated
by for hire carriers, the balance being operated privately.
These drivers serve the general public for any and all commodities,
except for a few exceptions are considered common carriers.
These type of drivers, legally, cannot refuse service to anyone except for good cause.
They must charge rates that are fair and reasonable to everyone.
These drivers may however, specialize in a certain type of shipment
such as refrigerated goods or build cargo.
Type of Routes of Coverage
Probably the most often used common carriers are those with
irregular route, radial service or regular route, scheduled service authority.
An irregular route carrier will provide
hauling services on an on call basis.
General Central Route
This is usually from a central office or terminal. From this point, shipments
are hauled from one specified location to another.
The regular route common carriers only operated over
specified highway routes on a regular basis.
This was using terminals that their strategically located
to consolidate and distribute freight into surrounding areas.
General Contract Carriers
Contract carriers are companies that enter into a
contractual agreement with business establishments.
These agreements go over shipping materials or products for that business.
By law, a contract carrier is not allowed to hold itself out to the general public
and must negotiate only long-term contracts.
Usually between 30 to 60 days is negotiable.
This would include, for instance, a trucker who contracts to make
all deliveries for a particular manufacturer or wholesale operation.
Although the ICC does not set an absolute limit.
The general rule that is usually applied is that contract carriers should
maintain fewer than 10 customers at any one time.
From a legal stance, the essential difference between a common carrier
and a contract carrier is that the latter is liable only for the obligations
assumed under contract and for losses due to negligence.
They do not have the responsibility of a common carrier unless
they have agreed to accept such liability by contract.
Under these companies, a form of contract carrier is specialized in:
- transporting heavy machinery and equipment,
- hazardous material,
- or oversize loads
General, such hauling is done on a flatbed trailer or
specialized container units over major highways.
You may have seen these refrigerated tanker trucks racing down the freeway,
well that is the classification of truckers we are describing.
Other General Categories
Other than commodities hauling, many of thee type of companies
also provide warehousing and crane and rigging services.
Additionally, specialize carriers will often transport by rail or barge,
and can us the services of freight forwarders to arrange the necessary connections.
Many may also act as consultants for other companies that
are transporting with their own equipment on a one time basis.
This classification of companies are not subject to the ICC regulations
because they haul on or more types of unregulated commodities.
This means that these truckers can begin or end operations
without permission from the ICC.
They can also negotiate any rate or contract
provisions the customer will accept.
The General Coverage Example
An example of a freight that are excluded from regulation included
unprocessed agricultural products, livestock, fish, wood, and newspaper.
Some carriers that haul in either commercial or terminal
zones are also considered an exempt carrier.
Commercial zones are defined as those territories within a
specified radius of certain metropolitan areas that cross two or more state lines.
Terminal zones are areas within a specified radius of certain airports.
In general however, carriers that operate as common carriers are
held under strict liability for loss to property while in their possession.
There are five exceptions to this provision Acts of God such as:
- or other nature events.
- Acts of a public enemy such as war.
Exercise of a public authority whereby a public agency
condemns or confiscates a load negligence of the shipper.
This is such as the improper packing of goods inherent vice or defect
of property including any characteristic of a
load that causes it to damage or destroy itself.
Five General Exceptions
These five exceptions are not however absolute.
Carriers may still be legally liable if they fail to exercise reasonable care.
As an example, the acts of God exception could not be used as a
defense if a trucker proceeds into an areas
where widespread flooding is in progress.
Difference in Carriers
Contract carriers on the other hand, are only held to the degree of
liability assumed under contract between them and the shipper.
What this means is that ordinary Bailey’s liability.
This obviously imposes a higher degree of responsibility upon a shipper.
They will need to carefully evaluate the terms of the shipping
contract to decide what losses the carrier will and will not pay for.
Under the provisions found in the 1980 Motor Carrier Act, regulated carriers
that operate on an interstate basses are also subject to
certain financial responsibility requirements.
This is why you need to file for a MC number and carry coverage for protection.
Such carriers are required to maintain various limits of liability protection
depending on the type of commodities they transport or haul.
Examples of General Coverage Limits
For example, the most common carriers will require a minimum limit of $750,000.
Drivers who haul hazardous substances must carry limits of either one
million dollars or five million dollars.
This depends on the type of cargo they haul.
Regulated carriers must also provide cargo liability coverage to protect
against the loss of a shipper’s goods due to any cause.
Current limit requirements for cargo coverage are between five
thousand dollars per vehicle with a ten thousand aggregate
for loss or damage occurring at any one time or place.
Most states follow these federal guidelines, although some
have enacted different limits for drivers that
operate under their jurisdiction.
Carriers can comply with these various federal and state requirements.
They can do it through providing evidence of insurance or by obtaining
a surety bond that guarantees payment of liability judgments up to the required amounts.
Usually the most common form of compliance is by purchasing the
necessary insurance policy and endorsing them with the prescribed attachments.
Keep in mind that even though the various state and federal filings
require the company to be responsible for just about all claims
up to the guaranteed financial responsibility of the driver.
The actual liability of a company is responsible for the limited to
those perils provided for under the cargo policy.
This is because insurance companies normally write their polices so,
that they retain the right to seek reimbursement from the trucker
for any paid claims falling outside the scope of coverage of these forms.
This is why the financial strength of a transit company can very important
to the insurance company proving cargo coverage.
Particular Job Functions
Take note that the status may change depending on a particular job or situation.
For instance, a common carrier may occasionally contract with a shipper
to perform services that it does not offer to the general public, thus acting as a contract carrier.
This could require additional limits of coverage especially if the cargo
involves items that require high er liability limits than are carried in the basic policy.
In addition to the filings, the ICC regulations also require insuring
carriers to provide a copy of their endorse polices
to the appropriated federal agency.
In addition, it is certified that they will verify over the phone
that such coverage is in force when requested.
It is important to take note that all required stat and federal filings must
be made by the insurance company providing coverage.
Neither the driver nor his agent can make them.
Many agencies, however are involved in proving certificates of coverage
to regulator and contracting fleet carriers
for who an owner operator is hauling.
The General Alternative Classification
As an alternative to ICC classification accounts can also be
categorized how they run their operations.
This approach to classifying trucking risk can useful for process
or to the agency personnel to gain a better
understanding as to how the industry operates as a whole.
General Freight Forwarder
These firms act as an agent and arrange for the
transportation of cargo for different shippers.
They basically arrange the total transportation chain from
the point of origin to the point of delivery.
This generally involves internal shipments of goods that utilize
a combination of truck, rail, air, barge and steamship services.
These freight forwarders are generally considered to be common carriers.
General Liability Insurance Exposure
They also have the same liability exposures as any other motor carrier you see out there.
What you will find is that since freight forwards are normally
independent carriers, they often look upon their coverage a convenience policy.
Take a look at this, since this will be of topic once
you purchase the right general insurance package for your truck.
General Insurance Shipper Paid
This insurance policy by me can be used to pay the shipper in case
of loss and then surrogate back against the carrier responsible for the loss.
At times, freight forwarder government compliance requirements.
Finally, note that the method of shipping used by
freight forwarders is not exclusively by truck.
Many general companies will not considered these accounts as eligible risks.
The General Operational Business of Coverage
As an operation business, you have guys on the road every day.
Anything can go wrong.
This is why it requires truck insurance
or automobile transporters insurance.
Insurance for transportation operations include the following:
- General Liability – to protect against lawsuits due to injury or property damage on your premises
- Property Insurance – protects against damage to your building, equipment, inventory, furniture and fixtures
Your General Insurance Needs
If your operations involve LTL or P&D work, you have a unique set of
needs that needs to be addressed in evaluating and
protecting the risks in your business.
Your operations may involve a:
- or storage facility.
All those elements and related risks must be taken into
a consideration when buying a low-cost company.
An auto insurance policy may seem to be written with
unfamiliar terminology and complicated clauses.
This can make it very confusing. This article discusses
insurance industry terms in language that you understand.
When you understand all auto insurance terms,
you can then make better decisions in general.
Insurance Companies Tips
You should review all after-market equipment you intend to install
on your car with your insurance agent,
so that you can be sure it gets covered properly.
You may put out $1,000 for a fancy stereo system for your car, but if the car is stolen,
your insurance is only going to reimburse
you for the $30 value they add to your car’s actual function.
Liability coverage of certain minimum levels are required by most states.
As a responsible citizen you will need to determine the insurance
coverage required in your state, and make sure you follow the law.
Not having insurance coverage will have you facing many
financial and legal consequences if you get into an accident.
Make sure you think about the specific components
your auto policy must have with respect to coverage.
You probably don’t need every insurance coverage option.
If you have a history of accidents,
it may be worthwhile to pay for collision coverage.
This tip holds true to all types of insurance products.
From trucks used in business to sports cars.
Using this example, let’s talk about sports cars in relationship to saving money.
Sports cars will require you to pay more to insure your vehicle.
Sports cars cost significantly more to insure than many others.
You should stick with an average vehicle.
Business insurance brokers near me.
Cheap insurance, though attractive, is not always the
best choice depending on your needs.
This is why it is helpful you look at insurance brokers and
general insurance agencies by me and near you
for the cheapest insurance coverage possible.
The cheap insurance you found might have gaps in coverage,
but it might also be a diamond in the rough.
It is important to know the company well before deciding to buy a policy.
General insurance rates can actually change based on location.
Some areas have higher insurance rates near me because of theft.
Consult with your independent insurance broker or agent,
and obtain a complete list of discounts available.
- Bundling insurance products can save on this type of shopping.
- Bundle everything online with one insurance company.
- Get your car and your home insured at the same place in a bundle.
- You should be getting your money’s worth when it comes to insurance.
- A bundled plan does not always offer this so shop around first.
You can create a list of the discounts and go through them to find all the
discounts you can get.
The amount you can save with discounts can be shocking.
Not all car insurance companies near me are equal.
Because insurance companies offer a broad array of policy prices,
always solicit additional quotes
if you do not like the first few you receive.
The General Auto Insurance Tips
Hopefully, you understand many of the most common insurance terms,
and you’ll be able to find an auto insurance policy that best suits your situation.
A well-informed customer will make the best choice in auto insurance.
There can be even more tips on finding the best insurance rates
for your circumstances. Do not settle on the first call, this practice can actually cost you more then save.
Remember, there are a lot independent insurance agents near me in search.
Cheap auto insurance companies exist, whether online,
or just around the corner from your home or place of work.
General Insurance Companies & Services
Be sure to work with an experienced coverage adviser like Target Up Insurance.
We offer products you need to properly protect the assets of your business,
meet the regulatory requirements, and safeguard the communities
you work within with the financial security of top-rated companies.
Find auto insurance in Orange CA or commercial truck insurance in California.
Offering 30 years experience helping truckers and personal vehicles get
cheap insurance by me from independent insurance agents near me.
No mater what part of California you live in.
Service Areas: Orange, Anaheim, Fullerton, Ontario, Fontana, Los Angles, San Diego, Huntington Beach, Riverside County, Garden Grove.
Transportation Operation Insurance
- Eric Benal