Bobtail insurance is an insurance policy that provides non-trucking liability for large commercial vehicles. You may have heard that while your truck is on permanent lease to a motor carrier, your insurance problems are solved. However, most fleet policies only cover scheduled vehicles while they are under dispatch. As an owner operator, what does that mean to you? Here are a few insurance considerations you should consider when leasing your truck to a motor-carrier.
How often is your truck under dispatch?
Generally, when your truck is under dispatch, your motor carrier’s fleet policy covers your truck for liability and physical damage as described by the lease company’s insurance policy. However, once your truck is no longer under dispatch, you no longer have coverage. Your fleet policy’s coverage ends at that point; causing a gap in coverage for your truck. From that point, you need to have bobtail insurance (or non-trucking liability) on your truck to fill in your gap in coverage.
Non-Truck Liability for Maintenance
Are you required to maintain your truck? Did you know that even though your motor carrier has purchased coverage, their liability on provides protection when a truck is being operated for business. Not only does your truck need liability, but you also need physical damage coverage to cover your truck against an accident. Consider this, if your truck has to go to the shop for repairs and your driver has an accident on the way to the shop. Who covers your truck during this claim? In this case, if your fleet policy doesn’t cover your truck, your bobtail non-trucking liability should cover your rig. Again, in a case like this you and your company should carry non-trucking liability.
Consider Texas State Law
Since we’ve established that your fleet insurance policy probably does not cover you while you’re bobtailing, consider state law. Consider this. If you simply drive your truck to a truck wash during, you have to carry at least the minimum liability requirements for the state of Texas. While this is a very small amount for such a large vehicle, non-trucking liability (or bobtail insurance) satisfies Texas minimum auto liability requirements.