SMS and SAFER Scores: An Introduction

The importance of safety in trucking can’t be overstated. Your life and the lives of others depend on your ability to safely get from Point A to Point B or anywhere else you may travel. Safety records, like your SMS or SAFER scores, help measure adherence to important safety practices. These scores provide an important snapshot into your safety record and can have a big impact on your insurance rates.

SMS vs. SAFER

SMS stands for Safety Measurement System. It is an on-road safety and performance measurement system utilized by the Federal Motor Carrier Safety Administration (FMCSA). The system was designed to change and adapt as new technologies and measurement guides are established. It is updated regularly (keep updated about any changes by checking the FMCSA website). Check SMS reports here.

SAFER stands for Safety and Fitness Electronic Records and is a system that provides safety information to both the trucking industry and the public online. You can search company safety snapshots free of charge using a company name, DOT number or MC number. Snapshots provide basic information about inspections, violations and crashes. More detailed information is available for a free by requesting a SAFER company profile.

How Are Scores Determined?

Both SMS and SAFER measure and report safety violations, but they do so a little differently. For example you are able to access a great deal of information about motor carriers and their violations for free using the SMS search option. You can find out not only how many violations are on a record, but also the specifics of these violations. SMS rates violations by severity. A parking violation might carry a weight of one while a more serious violation like inadequate brakes will be more serious. On the other hand SAFER only provides basic information in its free carrier snapshots.

Any time a violation is reported it leaves a negative mark on your record that can be seen by potential clients, employers, insurers, etc. Safer drivers are more appealing and a smaller risk and in turn will typically receive lower rates on insurance. Too many violations can result in penalties, fines and investigations.

SMS reports include information in a variety of BASIC categories including:

·         Unsafe Driving

·         Hours of Service Compliance

·         Driver Fitness

·         Controlled Substances and Alcohol

·         Vehicle Maintenance

·         Hazardous Materials Compliance

·         Crashes

How to Check Your Score

Knowing what your reports look like is essential to protecting your safety reputation. Motor carriers should regularly check their reports for accuracy. Keeping safety on your mind and striving to have a clean safety record will help you to improve your driving and possibly even lower your insurance rates. You can check your scores online from the FMCSA website. Check SAFER reports here and SMS reports here.

Correcting Errors

As you check your reports look for errors. The SMS results are based on state reported crash and inspection data. If you find an error you can report it using a portal known as DataQs. You can report errors or concerns for investigation.

Here at Western Truck Insurance Services we want you to Travel with Care and that means driving safely. Not only will safe driving help you save money on your insurance, it will also help you to make it home safely after a long journey on the road. Keep checking back and future posts will teach you some tips for improving your safety scores.

New Hours of Service Go Into Effect This July- Are You Ready for the Changes?

Do you wish you had a little more time on your hands? Working as a trucker often means long hours, many more than the typical American worker. While numerous people punch the time clock at their 40 hour a week jobs, some truckers drive as many as 82 hours any given week. If you feel like you need a vacation, you’re not alone, but the change in the hours of service rules from the FMCSA probably wasn’t the type of extra hours you were hoping to receive. These new rules mean big changes for many truckers and will have a real impact on how you work, how you drive and even on your insurance coverage starting in July of this year.

What Are the New Rules?

The new rules go into effect in just a few months; familiarize yourself with them now so you’ll be ready to follow them come July. Here are some of the highlights:

·        Number of Total Driving Hours Per Week Reduced- One of the biggest changes in the new hours of service rules impacts drivers who drive the maximum number of allowed hours each week. Currently an average of 82 hours of weekly driving time is allowed, but once the new rules take effect this number will decrease to 70 hours per week. No changes have been made to the number of allowed driving hours each day which will remain at 11.

·        Changes to 34 Hour Restart- Drivers working long hours often utilize the 34 restart to gain additional allowable driving hours during the week. After taking a 34 hour break the number of hours driven is reset to 0, allowing drivers to get a clean start on hours for the coming week. With the new rule each 34 hour restart must now include two consecutive 1 am to 5 am periods (driver’s local time). This reduces fatigue and allows the body to get optimal, nighttime sleep. Additionally the restart will only be available just once each week (168 hours).

·        30 Minutes of Rest Required Every 8 Hours- While the changes to the maximum number of weekly hours and the 34 hour restart will only effect truckers driving long hours, one provision will impact almost every trucker on the road. Starting in July all truckers will be required to take a 30 minute break every 8 hours. This break can be taken at any time, but you must never remain on duty for more than 8 consecutive hours without taking a break. You don’t have to rest during your break; it can be spent getting a meal, taking a walk, etc. as long as you’re off duty and not working.

·        More Information About the New Rules of Service- Get all the details about the new rules of service by reading the full report from the FMSCA. They have also prepared a helpful question and answer page that may answer some of your biggest questions regarding the upcoming changes.

The new regulations won’t just change the way you drive; they can also impact your insurance rates. Safety violations, including hours of service violations, can leave a negative mark on your SMS (Safety Management System) scores, which could potentially lead to higher insurance premiums. However, the reverse is also true. Truckers that consistently observe safety regulations and avoid receiving violations can often improve their insurance rates and save money. Whether you’ve got a few violations on your record or a perfectly clean report Western Truck Insurance Services would love to help you find the best rate possible. While trucking regulations change, one thing that will always remain the same is our focus on quality and helping drivers like you save time and money on great truck insurance.

General Liability – What is General Liability, Who Needs It, What does it Cover?

A form of Insurance designed to protect Owners and Operators’ businesses from a wide variety of liability exposures.  These exposures could include liability arising out of accidents resulting from the premises or the operations of an insured, products sold by the insured, operations completed by the insured, and contractual liability.

General Liability insurance is the first major layer of protection for claims of bodily injury or property damage against your business.  General Liability covers you, but it also covers many others involved in your business, such as:

  • If you have a joint venture or partnership, all of your partners, members and their spouses are protected if they are sued for something they do in an official capacity related to your business
  • If your business is a corporation, your policy covers all of your business executive officers, stockholders and directors while they are acting in their official capacities
  • If you have subsidiaries, your policy liability coverage extends to any subsidiary where you own at least 50 percent of the stock
  • Your employees are also protected from claims that result from actions they take in their capacity as employees.
  • If you have a written agreement to indemnify a person or organization, such as a vendor, that person or organization would be protected against liability claims for property damage or bodily injury as a result of selling or distributing your products
  • Anyone legally associated with your business, including volunteers working under your direction, are covered for liabilities that result from the work they do for you, and for the use or maintenance of your property that is in their care

What GL Insurance Provides

  • Bodily Injury
    – Covers Medical Costs
    – Loss Of Services
    – Court Awarded Compensation for deaths that result form Injury.
  • Property Damage
    – Physical damage to the property or
    – Loss of use of the property

Coverages

General Aggregate – limit that will be paid during any one policy period.
Occurrence – limit for the sum of damages and medical expenses because of all bodily injury and property damages arising out of any one occurrence.
Products & Completed Operations Aggregate –  limit for damages because of bodily injury and property damage.
Personal & Advertising Injury – limit for the sum of all damages because of all  personal and advertising injury sustained by any one person or organization.
Damage to Rented Premises – limit for damages because of property damage to any one premises while rented to you, or in the case of fire, while rented to you or occupied by you with permission of the owner.
Medical Expenses – limit for all medical expenses because of bodily injury sustained by any one person.

Rating

There are four main ways to rate General Liability:

  • Trucker’s Payroll
  • Gross Receipts
  • Number of Units
  • Area (square feet)

Excess Liability

  • Insurance that is excess over any other insurance, whether it is primary, excess, contingent or on any other basis.
  • Fire, Extended Coverage, Builder’s Risk, Installation Risk or similar coverage for your work
  • Fire insurance for premises rented to you or temporarily occupied by you with permission of the owner
  • Insurance purchased by you to cover your liability as a tenant for property damage to premises rented to you or temporarily occupied by you with   permission of the owner

When this insurance is excess, there will be no duty to defend the insured against any suit if any provider of other insurance has a duty to defend the insured against that suit. If no provider of other insurance defends, we will undertake to do so, but we will be entitled to the insured’s rights against all those providers of other insurance.

  • When this insurance is excess over other insurance, we will pay only our share of the amount of the loss, if any, that exceeds the sum of:
  • The total amount that all such other insurance would pay for the loss in the absence of this insurance
  • The total of all deductible and self-insured amounts under all such other insurance.
  • We will share the remaining loss, if any, with any other insurance that is not described in this Excess Insurance provision.

Comprehensive and Specified Perils

Operators of commercial vehicles, such as truckers, need a number of insurance products.

Automobile Physical Damage insurance covers the damage to, disappearance, or destruction of actual automobiles and/or their equipment, such as tractors, trailers or semitrailers, trucks, or private passenger types of vehicles. Equipment does not include personal effects (clothes, eyeglasses, etc.)

Covered autos are determined by designation symbols that must be tailored to whether the automobile that is to be insured is owned, rented, leased, hired, or borrowed and the type of vehicle. Premiums usually depend upon the type and age of the vehicle, coverages chosen, garaging location, driver information, deductibles chosen, and loss experience

Such coverage is divided into two major components “collision” and “all perils other than collision.” Collision covers striking another object (including other vehicles) and overturn of the vehicle.

Comprehensive:

Comprehensive or “All perils other than collision” include loss by fire, lightning, explosion, theft, windstorm, hail, earthquake, flood, mischief, vandalism, falling objects, or the sinking, burning, collision or derailment of any conveyance transporting the auto. These coverage’s can be purchased on an all inclusive or comprehensive basis.

Specified Perils:

Written on a basis where each peril is specifically described (called named peril or limited specified causes of loss.) Which are listed on the policy page under Section IV – Physical Damage Coverage.

Excluded Perils:

In both cases there are some perils which are excluded from coverage.

Need help with your commercial truck insurance? Contact Western Truck Insurance now.

Form MCS-90 – Financial Responsibility for Motor Carriers

Download: Form MCS-90 – Financial Responsibility for Motor Carriers

Financial responsibility means having insurance policies or surety bonds sufficient to satisfy the minimum public liability requirement. Public liability means liability for bodily injury, property damage and environmental restoration.  Environmental restoration means restitution for the loss, damage or destruction of natural resources arising out of an accidental discharge of toxic or other environmentally harmful materials of liquids.

The MCS-90 Endorsement;

Background:

The MCS-90 is a result of the Motor Carrier Act of 1980, carrier deregulation was a part of a sweeping deduction in price controls, entry controls and collective price setting in  US transportation that started in the 1970’s and ended when President Carter signed it into law on 7/1/1980.

It was envisioned to be a sweeping de-regulation of the trucking, railroad and airline industries to remove 45 years of excessive & inflationary Government restrictions and red tape and to have an anti-inflationary effect to reduce consumer costs and to conserve hundreds of millions of gallons of fuel.

Congress meantime became concerned with increased truck traffic & non-conformance with trucking regulations and began a debate (of course) to address these concerns.  At the same time,  the DOT conducted a random roadside inspection of commercial vehicles traveling on I-80 in Pennsylvania and the results were pretty staggering.  More the HALF of the commercial vehicles were placed out of service due to safety violations.

As a result of the debate and the informal study, Congress passed the MCA of 1980 (the Act) which by 1990 resulted  in the number of licensed carriers exceeded 40,000 – more then double the number in 1980.

The MCS-90 Endorsement: No Coverage? No Problem!

In order to get the trucking & insurance industries compliant with the Act’s mandated levels of financial responsibility, Congress created the MCS-90 endorsement.  It is essentially an endorsement that makes the insurer a surety to the public.

The Act requires the MCS-90 endorsement to be attached to ANY liability policy issued to motor carriers operating commercial vehicles that are transporting property in interstate or foreign commerce. (49 C.F.R. 387.3, 387.7)

The form is attached to a truckers coverage form, commercial auto form or business auto policy, depending on the form used by the insurer.  Usually, when a loss occurs, the motor carrier’s vehicle is listed in the declarations or is otherwise covered by the policy and the insurance contract itself provides the necessary coverage to protect the public.  Occasionally, as a result of underwriting errors, policy terms, insolvency or illegal trucking operations, a vehicle will have no coverage and the MCS-90 endorsement is triggered.

Policy Issues:

The purpose of the endorsement is to ensure adequate levels of insurance in the event of an accident involving a member of the public on the environment.  The MCS-90 creates a surety-ship by the insurer to protect the public when the insurance policy to which the MCS-90 is attached otherwise provides no coverage to the insured. (Canal Ins Co v Distribution Servs., Inc. 5th Cir. 2001)

In effect, the endorsement shifts the risk of loss for accidents occurring in the course of interstate commerce away from the public by guaranteeing that an injured party will be compensated even if the insurance carrier has a valid defense based on a condition in the policy. So Coverage Defenses DO NOT APPLY – the insurer is ultimately on the hook for any final judgment.

The MCS-90 does not however create any obligation on the part of the insurer to defend it’s insured for claims not covered by the policy, however a failure to defend may result in a default judgment and then the MCS-90 endorsement creates absolute liability on the part of the insurer to satisfy the judgment up to the policy limits listed on the endorsement.

Subrogation is Allowed:

If the insurer ultimately pays on a judgment where no coverage exists, there is a clause in the endorsement that “the insured agrees to reimburse the company for any payment made on account of any accident, claim or suit involving a breach of the terms of said policy, and for any payment that the company would not have been obligated to make under the provisions of the policy except for the agreement contained in the endorsement” (49 C.F.R. 387.15)

In theory the insurer can recover from the insured but they cannot commence recovery efforts until after they make payment, which is often years after the loss and the insured can file bankruptcy or transfer it’s assets to avoid paying any judgment the insurer receives.

Some MCS-90 Interpretations:

The MCS-90 creates a duty to indemnify an insured for non-covered autos operated under the motor carrier’s authority  (John Deere Ins. Co v Nueva, 95h Cir 2000)

Without a lease between an owner/lessor and motor carrier/lessee, an insurer will not be required to indemnify the motor carrier for any judgment against the owner/lessor  (Jackson v O’Shields, 5th Circ 1996)

The obligations of an insurer to indemnify it’s insured also extend to any liability deductibles or self-insured retentions the insured may carry.

( David N Nissenberg, The Law of Commercial Trucking: Damages to Persons and Property 3rd Ed 2003)

Protecting Your Business is Serious Business

Work Related Accidents Impact…

  • You and your net worth
  • Your time and focus
  • The company you have built and its Stakeholders
  • Employees and their families
  • Lease Operators and their families

Risk Management is Mission Critical

  • What happens if an employee sustains a work-related injury or worse?
  • What happens if a lease operator sustains a work related injury or worse?
  • How is your exposure as a business owner different in each scenario?

Lease Operator

The Exposure…
The reality of occupational accident exposure is that if Lease Operators do not have coverage, then a serious injury will result in a claim made to the Motor Carrier’s workers compensation policy. Successful or not, you can count on the claim being made.

The Facts…
Occupational accidents and injuries can have devastating effects on an organization without proper protection.  If there’s enough money involved, personal injury lawyers will challenge the financial responsibility of all involved parties.  The related legal defense costs alone can severely impact operating profits and even drive many businesses into bankruptcy.  The coverage to reduce the exposure is both prudent and affordable.

What are the options?

Option #1:
Leave everyone exposed to a “parade of horribles.”

Option #2:
Agree that your lease operators are statutory employees and enroll them in your workers comp plan. This is the most expensive solution and may cause you to absorb the full onslaught of accompanying payroll taxes (perhaps even retroactively).

Option #3:
A Group Occupational Accident Plan for your lease operators allows you to pass through the related costs to them at a group rate, protecting them with 24/7, 48-state coverage, including survivor benefits, and defends your independent contractor agreement with them. Moreover, if you lose in a challenge by a court of law or workers comp review board, the Occupational Accident policy for the injured lease operator can be designed to convert to a ‘full blown’ workers comp policy and eliminate your company’s related contingent exposure.

Key GAIC Advantages for Lease Operators

  • Coverage limit issues, i.e., Plan A, B, C, or D;
  • Commencement Period
  1. GAIC gives 90 days to report a claim, treatment can begin when necessary
  2. Competing policies say treatment must begin in 90 days
  • Sub-limits: e.g., most competitors have $ 1,000 max limits for chiropractic care, ambulance or air flight, physical therapy, & other rehab treatment GAIC does not impose the sub-limit Accidents must be reported within 90 days, benefits can begin immediately upon reporting or at any time thereafter, and are not subject to a 90 day commencement period…and Accident benefits include dental where most competitors do not
  • When a $ 2mm CSL per occurrence aggregate for any one accident is selected, $ 1mm is set aside specifically for medical expenses, & $ 1mm for death, disability, & rehabilitation.
  • GAIC assigns a Nurse Care Manager to help insured deal w/ Psycho-Social issues
  • Temporary and Long-Term Disability Income benefit is based on Schedule C income and retro to day 1 (most competitors impose a 7 day grace period) and applies to the definition of “Under the course of doing business,” which includes maintenance, cleaning, & other misc activities…so coverage is not limited to just driving and loading/unloading
  • The $ 1mm maximum accident medical benefit is annual, not a lifetime one
  • Death benefits apply if death occurs within 2 years (instead of just 52 weeks) from the accident

Important Coverage Points for Fleets

  • Major point:  to keep personal injury attorneys away and adverse decisions from workers comp review boards, fleets need to offer the most broad occupational accident coverage available
  • GAIC does not impose Aggregate Limits on the Group Policy as do competitors…if a fleet has 100 drivers, each with $ 2mm Aggregate Limit, then GAIC’s exposure is $200mm.  A competitor will attempt to sell the same deal but put a $ 5mm or $ 10mm aggregate “stop loss” limit in
  • Average length of disability with GAIC is 29 days, which is 9 to 14 days shorter than before the Nurse Care Manager benefit was introduced.
  • Any expense not covered is a potential black hole liability
  • GAIC’s policy limits are generally higher than competitors
  1. Accidental death benefit pays $ 50K more ($ 300K vs $ 250K), i.e., the $ 2000/month survivor benefit pays for 125 months instead of just 100 months
  2. Accidental Dismemberment pays $50K more ($ 300K vs $ 250K)
  3. Paralysis benefit pays $50K more ($ 300K vs $ 250K)
  • Contingent Liability Feature available to the Motor Carrier as part of the Occupational Accident plan…it defends the lease agreement if a lease operator accident claimant attempts to claim employee status & collect workers comp benefits…and it defends the company in a Court of Law or in a Workers Compensation Review Board…if you lose, the contingent liability feature will pay up to statutory limits of a Workers Comp Policy

Need more information or help? Western Truck Insurance can answer all of your risk questions and help protect you and your business.

WHAT IS STATED AMOUNT PHYSICAL DAMAGE?

Unlike private passenger type vehicles commercial trucking physical damage is often insured on a “stated amount” basis.

Physical damage premiums for private passenger type vehicles are ordinarily determined based on the original cost of the vehicle and its age.  This is practical largely because these vehicles depreciate in an easily predicted fashion.  Heavy commercial vehicles, however, are designed to outlast their engines.  Truck tractors, often traveling well in excess of 100,000 miles per year are designed to have their engines replaced regularly.  The value of the vehicle therefore is heavily dependent upon how recently the engine has been replaced.  A four year old tractor, for example, with a new engine, is worth considerably more than a similar four year old tractor with similar mileage and with its original engine.

Since it is more difficult to determine the worth of heavy commercial vehicles based on original cost and age, truck insurers have developed an alternative method, “Stated Amount” for providing physical damage coverage and determining premium.  The insured “states” the maximum vale of the vehicle and the premium is determined as a percentage of that value.  That percentage decreases as the deductible increases. 

In general lower valued vehicles pay a higher premium percentage than more valuable vehicles because damage that would be a partial loss on a high valued vehicle could be a total loss on an older, lower valued vehicle.

The insured does not automatically receive the stated amount in the event of a loss.  The amount paid is always the least of three possible values:

  • The actual cash value of the vehicle at the time of the loss
  • The cost of repairing or replacing the vehicle with one of like kind and quality
  • The stated amount of insurance for the vehicle

Therefore the most that the insured could collect in the event of a total loss would be the stated amount. 

On a stated amount basis truckers must value their vehicles in advance.  At each renewal the values must be reevaluated.  Automatic coverage is made more complex because of the need for timely vehicle valuations.  Professional underwriters will require insureds to justify in advance valuations that differ significantly from average expectations.  A little time spent resolving these issues when the vehicle is initially insured can avoid serious claims settlement problems following losses.

Truck insureds and truck claims adjusters, however, both favor the stated amount approach.  They like the idea of having an automatic cap on the value of the vehicle.  It makes claims settlement negotiations less contentious.  It is also easier and more accurate to compare competitive quotes on a percentage of value basis.

WHAT IS PHYSICAL DAMAGE INSURANCE?

Operators of commercial vehicles, such as truckers, need a number of insurance products.

Automobile Physical Damage insurance covers the damage to, disappearance, or destruction of actual automobiles and/or their equipment, such as tractors, trailers or semitrailers, trucks, or private passenger types of vehicles.  Equipment does not include personal effects (clothes, eyeglasses, etc.)

Covered autos are determined by designation symbols that must be tailored to whether the automobile that is to be insured is owned, rented, leased, hired, or borrowed and the type of vehicle.  Premiums usually depend upon the type and age of the vehicle, coverages chosen, garaging location, driver information, deductibles chosen, and loss experience

Such coverage is divided into two major components “collision” and “all perils other than collision.”   Collision covers striking another object (including other vehicles) and overturn of the vehicle.

“All perils other than collision” include loss by fire, lightning, explosion, theft, windstorm, hail, earthquake, flood, mischief, vandalism, falling objects, or the sinking, burning, collision or derailment of any conveyance transporting the auto.  These coverages can be purchased on an all inclusive or comprehensive basis, or a basis where each peril is specifically described (called named peril or limited specified causes of loss.)  In both cases there are some perils which are excluded from coverage.

Excluded perils for which no physical damage insurance coverage is ordinarily provided include nuclear hazards, war or military actions, organized racing or demolition contests, wear and tear, road damage to tires, and damage to most electronic equipment not required for the operation of the vehicle.

Although not mandated by law, like automobile liability insurance, physical damage is ordinarily required by financial institutions that loan money to purchase automobiles.  Since the automobile is used as collateral for the loan, the lender needs to make sure that the collateral remains unimpaired.  The insured’s own equity in his or her vehicle is also protected.

There are ordinarily separate deductibles for the “collision” and “other than collision” coverages.  Deductibles are the portion the insured must pay in the event of a loss.

The amount of coverage is ordinarily limited to the cost of repairing or replacing the damaged or stolen property or its value less depreciation.  If an insurer pays a physical damage claim that is the fault of someone else then the insurance company upon paying the physical damage claim assumes the right to recover the cost from whoever caused the claim.

Truck Accident Claims Reporting and Handling

It seems that one of the more consistent areas of needed improvement for truckers, whether large fleet, small fleet or owner operators, is in the approach to claims reporting. This writer, who actively receives claims, has seen the gambit in claims reporting from well documented detail to virtually no information provided at all.

So what’s the big deal?  Why collect any information at all, especially if there will be a police report available anyway? The answer to these questions is not always obvious to the truck driver who is feeling threatened by the consequences, regardless of whether the accident was the driver’s fault.

Approximately 30% of truck accidents are never reported by truck drivers. Most of those “non-reports” are not-at-fault accidents and the drivers just “presume” the other party will take care of their own damages. Many, however, are the result of a driver either embarrassed about the incident or hopeful it will just disappear. Finally, quite a number of these non reported accidents are the result of the driver just not knowing what to do.

Accident reporting is simple. Just about every insurance company and/or agent provides an accident report form directly to the motor carrier or driver. That form is the basis for collecting information about the accident and all drivers should carry that form in their truck. It is the responsibility of fleet safety personnel to make sure the form is in all trucks and that drivers are continuously trained on how to complete it.

At the time of any collision, fire, theft, or other loss, the driver should take a deep breath and go into, what I call, “the data collection mode”. This should be a non-emotional, fact gathering, state of mind. There should be no admitting or blaming for wrong doing with other parties. The driver should immediately grab the accident report form and begin asking questions and documenting information.

The first, and most obvious, is to assess whether anyone is hurt including the other driver and anyone else involved. Assuming the other driver has not been hurt and can actively participate in obtaining details, he/she should get themselves, all other parties, and the vehicles out of harm’s way if at all possible.

Once safely out of danger, the driver should note the date, time, and specific location of the occurrence on the report form. Also write down the description of the other vehicles involved, license plate numbers, and note how many people were in other vehicles.  Again, document this information on the report form. Before the police arrive, the driver should courteously approach the other parties and invite them to assist by exchanging contact information including name, address, phone numbers, email addresses, and insurance information.   No discussion of who was at fault should occur as that only leads to everyone becoming defensive and uncooperative. If the driver has a camera, or phone equipped with one, it is advisable to take pictures of everything.

After exchanging information, the driver should clearly write out an honest description of what occurred along with a graphic diagram of the incident. Doing so will help everyone visually understand the nature of the verbal and written details. Once this has been completed, the fleet safety manager (if applicable), a representative from the insurance company, and/or the insurance agent should be contacted.

Generally, the biggest stumbling block we run into is with the driver not moving quickly to obtain the above information, and then when police arrive and separate the parties, it’s too late for the driver to obtain the much needed information.

Claims that are reported immediately and with complete information are almost always settled at a lower cost than those that are not reported quickly and with detail. All drivers should make sure they carry the claim report form in their vehicles at all times.    

Truck Insurance – Cost and Quality

You may not believe how many truck operations purchase their truck insurance coverage on the basis of lowest price. This practice, however, is not just the company’s fault, but also the fault of many truck insurance agents who supply coverage on the basis of lowest price. It is not only unbelievable, but also a dangerous approach to keeping you, your business and your family safe, both physically and financially. Apply the same rules to buying truck insurance as you would to buying any other product or service. When buying truck insurance, consider the following: 

  • Combined Deductibles
  • Emergency Expenses
  • Rental Reimbursement
  • Increased Towing Coverage Limit
  • Personal Effects Coverage
  • Quick and Accurate FMCSA and State Filings
  • Quick and Accurate Certificate of Insurance Issuance
  • No Taxes; No Fees
  • Accurate and Detailed Insurance Accounting Information
  • And the list continues

Keep in mind that not all insurance policies are the same, and neither are insurance brokers. 

Ask your truck insurance agent questions and get complete and understandable answers, and you will quickly learn that, not only can you save money on truck insurance, but you can get more coverage for the money you spend.