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Why Is It Required To Have Commercial Truck Insurance in the State of California?

commercial truck insurance

Commercial Truck Insurance is just not a good thing in California….It is a must by law!

Commercial vehicles ensure the transportation of goods throughout the state. But larger trucks often result in injuries and property damages. Therefore, commercial trucks are required to get a general type of insurance to save and secure transportation services. 

The State of California is always on the side of protecting its citizens, That’s why the State set strict regulations for the commercial trucking industry. The insurance requirements of commercial trucks vary from one type of truck to the other and on the type of freight being carried in it. Before understanding the more reason for the requirement of truck insurance in the State of California, Let’s know the type of businesses that require commercial truck insurance!

Type of Business That Requires Commercial Truck Insurance

A list of businesses that require commercial insurance in the State of California are:

  • Long-Haul and regional freight businesses
  • Last-mile delivery business
  • Long-distance and Local-moving business
  • Heavy Equipment distributors
  • Waste management businesses
  • Commercial truck or pick-up contractors
  • Hazardous material handling businesses

There are many more businesses that require truck insurance there. Truck owners can get so many benefits from having commercial truck insurance. So, Let’s jump on to discuss the required reasons to get Insurance in The State of California!

Why is Commercial Truck Insurance Required There?

Any company in California that uses trucks for business purposes, must have commercial truck insurance, Whether it’s the owner’s personal transportation truck or a fleet of trucks owned by the company. Business insurance covers the truck and its driver in case of an accident during a work-related journey. 

Your business can be in legal and financial trouble without commercial insurance coverage in California. If any business truck is at fault in an accident then the owner or driver has to face serious legal trouble and then a hefty amount for settlement. Also, you have to pay for other property damage, medical bills, and related costs. There are so many reasons to have commercial truck insurance in the State of California, some of which are discussed here.

To Avoid Expensive Lawsuit

If any of your business vehicles gets involved in an unfortunate accident, then you have to face expensive lawsuits or settlements. You have to pay for damage caused to the other property or vehicles, any medical bills, lost wages, etc. If you don’t have commercial truck insurance, you will have the support of the insurance provider to cover all this. Also, you can avoid any legal trouble by owning truck insurance.

To Avoid Severe Penalties

If you don’t own commercial truck insurance, you could face severe penalties in The State of California. You can get a fine of approx. $350 and your vehicle can also be impounded. If this is not enough, then your auto insurance rates can touch the sky. 

Also, if you repeat this offense, your penalty will be increased up to $1800 and The State may suspend your license for around four years. So, to avoid such severe penalties, remember to have commercial vehicle insurance there.

To Avoid Injury Liability

All vehicles in California are bound to have a minimum amount of auto liability insurance coverage especially if you are using them for business purposes. The state has set some liability limits in such cases which are described as:

  • In case of bodily injury or death per person, liability is around $15,000.
  • In case of bodily injury or death of more than one person, liability is around $30,000.
  • In case of any property damage in one accident, it is around $5,000.

Your insurance provider may suggest you get high coverage limits based on the commercial vehicle you own and the purpose of the usage of the vehicle. So, be in touch with a good insurance provider.

To Get Uninsured Motorist Coverage

In case of any personal injuries or damages involving a commercial vehicle. This is so helpful in such cases where the accident causer is unable to pay the coverage for the full cost of damages. 

Coverage for Medical Payments

The insurance providers pay for the medical expenses if the driver or the employees are injured in the company vehicle. In this case, you will get the coverage regardless of the fact who is at fault.

Collision Coverage

This coverage helps you to pay for the expense of repairing or replacing the commercial vehicle if it is damaged in an accident, doesn’t matter who is at fault.

Towing Coverage

In this scenario, you get compensation for the cost of roadside assistance for company-owned vehicles. This coverage is also tolerated by the insurance provider.

Loading and Unloading Coverage

This coverage insures your vehicle against the damage of equipment and materials caused during transportation or while loading or unloading. This is a very important coverage in the case of sensitive material handling and transportation. 

To Cross State Lines

Most of the commercial trucks that operate in The State of California, have to cross state lines to operate. In such cases, the driver and the trucking carrier must have an insurance premium and follow all the guidelines related to it. These requirements are set by the Federal Motor Carrier Safety Administration and also when the carrier wants to obtain its operating authority number. 

As discussed, there are so many reasons to know why it is required to have commercial truck insurance in the State of California. Apart from some penalities and legal troubles, one can save his pocket as the insurance providers cover you for so many kinds of coverages in the time of need. 

Final Words

That’s all!

We have concluded this list of factors to know you about the requirements of having commercial truck insurance in The State of California. As insuring a truck can be expensive, we advise you to speak with different insurance providers before coming to a final decision.

To avoid any legal trouble or penality, one must have commercial Truck Insurance to operate their business in The State of California. So, if you own a commercial vehicle there, remember to have a perfect insurance plan to get your back cover!

We hope this blog helped you to locate your answer. But still, if you have any queries in mind, feel free to connect with us. We will be delighted to serve you!

Happy Reading!

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