If you are finally done with toiling for someone else’s company and you want to make a name out there for yourself, you probably have a few questions. One of them might be “do I really need vehicle insurance as an owner-operator?”
The answer to that question is almost always going to be a resounding yes.
Driving trucks can be dangerous — that much everyone knows. Whenever you go out there, you run the risk of getting into an accident. It’s even worse when you’ve got a heavy load sitting in the trailer behind you.
There are 3 major reasons owner-operators need to have vehicle insurance, and here they are below.
Insurance is Legally Required
Driving trucks as an owner operator can be quite profitable. Some owner operators, who are also independent contractors, can make over $50,000 a year. Some can even make six figures. But, making the transition into becoming an owner operator means you’ll likely have to handle a lot of logistics and paperwork.
One thing you’ll need to do once you become an independent contractor is handle your own insurance. And yes — insurance is legally required. You could get into a lot of trouble if you get caught out on the road with no insurance, and you definitely don’t want that.
If you intend to be working with a trucking company as an owner operator, however, you might be able to get away with not having certain types of insurance.
For example, if you already have your own primary liability insurance, you might not need bobtail insurance (bobtailing is when you drive your truck without a trailer attached which is generally more dangerous and prone to accidents). However, if you’re leased to a company and you’re driving under their authority, you may end up needing bobtail insurance after all. Make sure you check your lease agreement to see what kind of insurance coverage you’ll be responsible for.
Insurance Protects You and Your Investment
Everyone knows that insurance exists to mitigate your risks and protect you from any liabilities. This is especially important as an owner operator, as owning your truck means you have most likely spent a princely amount as an initial investment. Vehicle insurance with adequate coverage can protect you from situations that may put you or your truck in danger, such as theft or an accident.
There are different types of insurance coverage you may end up needing at one point or another, like the bobtail insurance coverage mentioned above. Some other examples are cargo insurance which covers the freight you are carrying, and non-owned trailer coverage which covers any damage to trailers you haul (that you don’t own).
Insurance Helps You Get Back on Your Feet
The main reason insurance is important is because you can never predict what is going to happen. You have no way of knowing whether your brakes are going to fail on a given day. There’s no way to know if some sudden devastating natural disaster is on its way. And you certainly can’t guess whether someone is going to steal your truck or your freight.
In the event that the worst case scenarios come into play, having insurance can help you financially recover from major expenses such as truck repairs or replacements and any costs incurred by liabilities. Depending on the coverage you have on your insurance policy, you might also find your health and medical costs paid for in the event of an accident.
Final Thoughts
As an owner operator, there are many things you’ll have to take charge of — especially vehicle insurance. Aside from insurance being a legal requirement, it’s also good to have protection for yourself and your investment. You may be tempted to “cheap out” on insurance and only get the bare minimum required, but it’s generally good advice to spend a little more for extra coverage. After all, you never know what might happen on the road!
Leave a Reply