Bobtail insurance is essential for truckers who find themselves driving without a trailer attached, especially if they are under a lease agreement with a motor carrier. Here's a breakdown of who needs bobtail insurance:
Owner Operators Under Lease Agreements: If you're an owner-operator leased to a motor carrier and occasionally drive your rig without a trailer attached, you likely need bobtail insurance. It's crucial to cover the gaps in insurance provided by your motor carrier, especially when driving between loads.
Lease Agreement Consideration: Review your lease agreement to determine your insurance responsibilities and coverage provided by the motor carrier. If your lease agreement doesn't include bobtail insurance or if you frequently drive without a trailer, it's essential to obtain bobtail liability coverage.
What's typically included in a bobtail insurance policy?
Liability insurance with a limit of $1,000,000
Uninsured and underinsured motorist coverage
Monthly premiums ranging from $350 to $600, which are generally cheaper than motor carrier policies.
If you have your own authority, you may not need bobtail coverage as your primary liability policy likely covers you when your trailer is detached. However, it's essential to ensure coverage for all scenarios relevant to your operation to safeguard your livelihood.
Consider this scenario to better understand bobtail insurance:
Suppose you're off-duty and driving your truck to a service center without a trailer attached. During the journey, you encounter an accident, damaging property like a telephone pole. In this case, bobtail insurance would cover the property damage caused, while damage to your truck would typically be covered by the physical damage part of your policy.
Understanding your insurance needs and ensuring appropriate coverage can protect you financially in unexpected situations, ensuring peace of mind while on the road.