Non-Trucking Liability (NTL) Insurance is coverage designed for truckers when they use their trucks for non-business purposes, such as commuting or personal use during off-duty hours. Here's a breakdown of Non-Trucking Liability Insurance:
Definition: Non-Trucking Liability Insurance covers both your tractor and trailer when you're not on dispatch. It encompasses scenarios like commuting or using your rig for personal purposes during your time off.
Cost: NTL Insurance premiums are generally affordable, ranging from $29 to $50 per month. For leased owner-operators who bundle NTL with physical damage insurance, the combined package typically ranges from $1,500 to $3,500 annually. The exact cost depends on factors like equipment value and whether additional coverage like cargo insurance is needed.
Who Needs It:
Leased Owner Operators: If you've leased a truck and the motor carrier provides primary liability insurance while you're on duty, NTL Insurance becomes crucial for coverage when using the truck outside of work. For instance, if you're involved in an accident while driving your truck for personal reasons, NTL Insurance steps in.
Hot Shots: Hot shot truckers, who often use pickup trucks for business, may also need NTL Insurance as they frequently use their trucks for non-business purposes like grocery shopping or recreational activities.
Temporary Insurance Needs: If you've purchased a new truck but your lease agreement doesn't start for a few weeks, you may need temporary coverage to drive the truck home from the dealership. NTL Insurance provides an affordable option for this scenario.
Policy Limits: A typical Non-Trucking Liability policy includes liability limits of $1,000,000 (combined single limit) and uninsured/underinsured motorist coverage with limits like $50,000 per person and $100,000 per accident.
Questions to Ask NTL Insurance Companies:
Definition of Non-Trucking: Clarify what the insurance company considers as non-trucking activities covered by the policy.
Need for Bobtail Coverage: Determine whether NTL Insurance provides adequate coverage or if additional bobtail coverage is necessary.
Exclusions: Inquire about any exclusions in the policy related to non-trucking activities.
Lease Agreement Compliance: Ensure the policy meets the requirements specified in your lease agreement with the motor carrier.
Available Limits: Ask about the available liability limits and any options for adjusting deductibles to potentially lower premiums.
Understanding Non-Trucking Liability Insurance and its coverage specifics can help ensure you have the necessary protection for your trucking activities both on and off-duty.
Note: Non-trucking liability insurance is often confused with Bobtail insurance. Learn the difference here: NTL vs Bobtail