If you’re a trucker looking to transition to an owner operator, you will likely need short term truck insurance to cover your truck while it’s in transit to the terminal, the DOT or wherever it needs to go.
A lot can happen while transporting your truck. Without the right insurance coverage, you could find yourself facing liability claims and exorbitant costs for damages.
What is Temporary Truck Insurance?
Short term truck insurance, also known as temporary non-trucking liability insurance, is temporary coverage for a commercial truck. Temporary insurance policies are typically valid for just 30 days, but you can also find coverage that lasts just a few days.
New owner-operators usually purchase these policies to protect against risk and damage while driving the truck to a business location or to get it serviced.
Short-term policies do not cover trucks while they are transporting goods. Truckers must have permanent commercial truck insurance to start hauling cargo.
Types of Trucks Covered by Short Term Trucking Insurance
Temporary truck insurance can cover a variety of commercial vehicles, including but not limited to:
- Box trucks
- Dump trucks
- Tow trucks
- Cement mixers
- Long trucks
- Pickup trucks
Virtually any truck can be covered by this type of insurance.
Why Do Truckers Need Temporary Truck Insurance?
Do truckers really need temporary truck insurance? Yes!
Commercial trucks are vulnerable to hazards, and there is always the risk of an accident anytime you’re out on the road. Having short term semi truck insurance will ensure that you have the liability coverage you need to transport your truck with peace of mind.
Truckers need temporary truck insurance when using their trucks for personal reasons, like transporting a newly purchased tractor.
Typically, this type of coverage is reserved for truckers who have signed a lease agreement with a carrier. Motor carriers will generally require non-trucking liability coverage as part of their agreement.
Drivers may also purchase this coverage if:
- They’re transporting a used truck to a mechanic for repairs before they start hauling cargo.
- Taking their truck in for painting (striping and lettering) before they start transporting goods.
Without temporary insurance, drivers put themselves at great financial and legal risk.
What Does Temporary Commercial Auto Cover?
Temporary insurance is generally a liability-only policy. Liability-only policies will cover you if you are involved in or responsible for an accident.
Coverage only applies to third parties, and it will cover:
- The cost to repair damage
- Medical expenses if the other party is injured
- Legal fees
- Settlement costs if you are sued
Temporary truck insurance will not cover any damage to your truck. There is no cheap temporary truck insurance company that extends coverage beyond general liability.
How Much Does Short Term Truck Insurance Cost?
Because temporary term truck insurance is only valid for a short period of time, they are relatively inexpensive to acquire.
The cost of the coverage will depend on several factors, including:
- How long the policy lasts (24 hours, 30 days, etc.)
- Coverage requirements
Many insurance carriers offer immediate binding with their short term policies, which means that the coverage is active right away.
Here’s an example list of pricing for short term policies:
- $140 for 24 hours of coverage
- $240 for 48 hours of coverage
- $340 for 72 hours of coverage
- $440 for 96 hours of coverage
- $540 for a 5-day policy
Drivers will need to ensure that they meet their state’s minimum requirements for coverage when purchasing this type of policy.
If you’re purchasing a new truck as an owner-operator or plan to sign a lease agreement, you will need short term truck insurance. This type of temporary bobtail insurance will provide liability protection while driving your truck to the terminal to sign a lease agreement or to another destination before you start hauling goods.