What to Ask When Buying Insurance

What You Need To Ask When Buying Insurance

When you are rolling down the highway, the last thing you probably think about is insurance. However, without insurance, an accident, cargo claim, illness, or disability could mean financial ruin. Here are some key questions you should ask the next time you are searching for insurance:

1)   Does the company/insurance agent specialize in truck insurance?

• If not, how many truck insureds do they have?
• What percentage of their business is truck insurance?
• What is the company’s A.M. Best rating?
• Are they financially strong enough to pay a “limit of coverage” loss on a frequent basis?
• Why did they place the coverage with that company?
• Is cost their only consideration?

2)   Is the policy offered a true Trucker’s Policy or a Business Auto Policy?

• Does the coverage offered include:
  • Pollution coverage
  • Off temperature cargo coverage
  • Freight charges
  • Cargo coverage in absence of damage
  • Delay resulting in direct loss
  • Punitive damage coverage
  • Cargo co-insurance provision

3)   Who will be handling your claims?  (get specific names)

• What office handles claims and do they have 24-hour claims service w/adjusters on call at all times?  (If so, test this – call them this weekend at 2:00 a.m.)
• Will you be talking with the same individuals on each claim?
• How long does it take the company to get you back on the road?
• Do they use adjusters who are exclusively familiar with truck claims?
• How does the claims department minimize your loss?
• Does the insurance company have a working relationship with area shops?

4)   Does the insurance company pursue your claim, even though they are not involved?

• Do they have a subrogation department to assist you in the collection of your deductible or downtime?
• How much did they collect for their insureds last year?

5)   Are all coverages with one company? (Liability, physical damage, cargo, general liability, bailee, etc.)

• Has your agent sacrificed your security and convenience for low price?

6)   Do they provide safety & loss control services?

7)   Are they flexible in their underwriting procedures?

• Do you get to talk with the underwriter if a problem arises?

8)   Does the agent or insurance company get involved in your state or local trucking events and associations?  How?

Insurance may seem like a lot of money for something that you hope you never use.  It is an investment in the protection of your assets. More importantly, it is an investment in your future.  Invest wisely.