Bobtail Insurance Cost – What You Need To Know

Bobtail insurance is a kind of trucking liability insurance. It is necessary to protect the person who is driving, in cases if he operates the truck when he is not under dispatch. In general, Bobtail insurance coverage will be needed for leased contractors or owner-operators, those who are working for commercial motor carriers.

There are various transport and freight carriage methods out in the trucking industry. Each one will have its own set of costs, rewards and risks. A more risky one is bobtailing. Here let us know about the Bobtail insurance cost.

Bobtail insurance – what does it mean?

Typically, the truck industry is considered as the backbone of the economy of a country. Whether you are a common man ordering stuff from online or a business person needing a huge number of resources to operate the business, everything requires the transportation of trucks and their drivers.

Most of the trucks moving across the country will be driven with a trailer in tow. If the driver belongs to the trucking authority of a third party without a trailer, it is mentioned to be bobtailing. Generally bobtailing insurance is applicable for such cases where the driver operates the truck without a trailer.

What will be the Bobtail insurance cost?

Usually, for most of the drivers, this type of insurance policies will cost the person for the cost that ranges $2,000-$3,000, the cost is for annual. If you break down this, it will be approximately $5.50 per day.

Factors considered in determining the cost of bobtail insurance

The amount for Bobtail insurance is based on many factors, which includes:

  • The driving record
  • The market value of truck
  • Driver’s experience
  • Location

  • The more experienced the truck driver, the less premium it carries.
  • If you look for higher coverage, the cost too will be high.
  • Those cases, where the Bobtailing is high, the risk is more. Hence the premiums will go up.
  • If your past history has a lot of claims on the insurance policies, then you may need to pay more Bobtail insurance.

What is covered under the policy?

Bobtail Insurance policy centers on liability. If the truck is operated under the authority of someone else, without a trailer in tow, and got into an accident, the insurance will protect you. You will be covered under the insurance in cases:

  • In a situation where you get into an accident, where you drop off one load in the middle and pick up the other.
  • When you are on the route to pick the first load and faced an accident
  • While you are on the way home after finishing work and met with an accident.

When you are not covered under the policy?

Those things which are not covered under the policy are given below. Remember the Bobtail insurance cost is not going to help you for below scenarios.

  • Injuries to employees are not covered
  • Though damage property of people is covered, it is required a commercial trucking policy for claims to your own damage
  • Loss of income in case you are not able to use a truck.

Also Read: What Can You Do After You Witness A Car Accident?

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