Explain deductibles and policy limits for CDL insurance If you are a new CDL driver, understanding insurance policies can seem overwhelming. After all, there are many terms, coverage types, and fine print to navigate. Two of the most important concepts are deductibles and policy limits - and getting them right is crucial for protecting your trucking business. Policy Limits: What Every New CDL Driver Should Know They are expressed as two numbers separated by a slash, such as 50/100 or 100/300. The first number represents the maximum amount the insurance company will pay per person for bodily injury, while the second number represents the maximum amount the insurance company will pay per accident for bodily injury. Understanding policy limits of Insurance for New CDL Drivers, as inadequate coverage can leave them financially vulnerable in the event of a serious accident. When selecting CDL insurance, it is essential to choose policy limits that provide sufficient coverage based on the nature of the driving job, the value of the cargo, and other relevant factors. 1. Liability Coverage: Covers third-party costs if you are at-fault in an accident, like other vehicle damages, injuries, or environmental cleanup. 2. Physical Damage Coverage: Covers repair or replacement of your own truck after an incident like collision, fire, theft, or jackknifing. 3. Non-Trucking Liability: Covers personal use of your commercial vehicle when you are not working. 4. Motor Truck Cargo: Covers the costs of damaged or stolen cargo loads you are hauling.
How Do Deductibles and Limits Work Together? Deductibles and policy limits work together to determine how much you and your insurance provider pay after an incident: 1. Your policy limits are the maximum your insurance will pay toward a covered claim. 2. Any costs exceeding your deductible amount are paid by your insurance up to the policy limits. 3. If total expenses exceed your policy limits, you are responsible for paying the remaining amount.
Truckers General Liability Insurance: Protecting Your Business In addition to standard CDL insurance coverage, truckers often require Truckers General Liability Insurance to protect their business from third-party claims of bodily injury or property damage. This type of insurance provides coverage for legal fees, medical expenses, and damages awarded in lawsuits resulting from accidents involving the insured truck. Truckers General Liability Insurance is especially important for new CDL drivers who may be unfamiliar with the complexities of commercial driving and the potential risks involved. By securing adequate general liability coverage, drivers can safeguard their livelihood and protect their assets in the face of unexpected legal challenges. As insurance specialists for the trucking and transportation industry, Southwestern Insurance has deep expertise helping new CDL drivers navigate deductibles, policy limits, and all aspects of commercial truck insurance. Our dedicated agent team will take the time to understand your business's operations, hauling needs, budgets, and risk
exposure. We'll then custom-build an insurance program with appropriate coverage limits and affordable deductibles aligned with unique requirements of your company.
