Bobtail Insurance Cost
Trucking is a very important industry. Businesses and consumers around the country rely on truckers to move freight from place to place so that businesses have goods to sell and consumers have goods to buy.
Being a trucker, though, comes with a variety of unique risks that could land you in hot water if you aren’t covered by the right insurance policy.
Bobtail insurance is an essential insurance policy that can help protect truck drivers from lawsuits and liability in certain circumstances.
Read on to learn more about the cost of bobtail insurance, what it is, and who needs it.
We Cover in This Guide
- How much does bobtail insurance cost?
- What is bobtail insurance?
- What does it cover?
- Benefits and risks
- Who needs bobtail insurance?
- Tips for buying
- Bobtail insurance and non-trucking liability
How Much Does Bobtail Insurance Cost?
The cost of bobtail insurance will depend on several factors, including your driving history, frequency of driving without a trailer, limits requested, and more.
With that being said, the cost of bobtail insurance will typically fall somewhere between $20 and $50 per month — making it a very practical and affordable investment.
Other factors that may affect the cost of bobtail insurance include:
- Years in business
- Industry experience
- How many trucks you own and operate
- How busy your business is
- Number of employees (if any)
- Employee driving records
What is Bobtail Insurance?
On most days, truck drivers typically drive trucks with trailers attached. However, in some cases you might find yourself operating under someone else's trucking authority and driving without an attached trailer. This is known as bobtailing.
Bobtail insurance is a specific type of liability insurance designed to protect truckers when driving a truck without a trailer attached to it.
What Does Bobtail Insurance Cover?
Bobtail insurance is a type of liability insurance that covers you when you are responsible for an auto accident while driving a truck without a trailer under someone else’s trucking authority.
For example, bobtail insurance would cover you if you are involved in an accident:
- On the way back from a delivery
- On the way to pick up your first load
- After delivering a load and on your way to pick up another one
Keep in mind that since it is a liability policy, bobtail insurance does not cover damages to your truck in these circumstances — instead, it covers things like settlements, medical costs, and legal fees.
If you are involved in and responsible for an accident while bobtailing, your general liability insurance will not cover the expenses.
Bobtail insurance provides the coverage you need to avoid significant income loss due to legal fees, medical costs, and similar expenses if you are found to be at fault in an auto accident.
Who Needs Bobtail Insurance?
Your trucker’s liability or motor carrier’s insurance only protects you when you are under dispatch or driving with a trailer attached.
You need bobtail insurance if you:
- Ever drive a truck without a trailer under someone else’s trucking authority
- Are required by your motor carrier to have this coverage
- Want to protect yourself from extreme expenses if you are involved in an auto accident
Ultimately, if you work as a truck driver who delivers goods for different companies, you likely need bobtail insurance to be sufficiently covered.
Bobtail Insurance & Non-Trucking Liability
Bobtail insurance and non-trucking liability insurance are labels often used interchangeably; however, there are some key differences between the two policies that are important to understand.
Bobtail Insurance: Only offers coverage when operating under someone else’s trucking authority without a trailer.
Non-Trucking Liability Insurance: Provides protection when using your truck for non business-related reasons. For example, this policy will protect you when using your truck to go grocery shopping, run errands, or pick up your kids from school.
Tips for Buying
Shopping for insurance policies can be difficult, so keep these tips in mind to help you find the best bobtail insurance policy for you:
Shop around: The coverage and cost of bobtail insurance vary from carrier to carrier. Be sure to shop around and get quotes from around three to five providers to find the right policy for you.
Fill in the gaps: Depending on your needs and risks, you may also need non-trucking liability and other types of insurance policies. Review your coverage to see what additional policies you should take out.
Work with an independent agent: Independent agents work with multiple insurance carriers to find the best rates and coverage. These agents can be a great resource if you are having trouble finding a good policy.
Do I need bobtail and non-trucking liability insurance?
You may need non-trucking liability insurance in addition to bobtail insurance if you ever use your truck for personal reasons.
What is trailer interchange insurance?
Trailer interchange insurance provides coverage for physical damage to a trailer that is in your care but you do not own. This coverage is often added to trucker’s liability or business auto insurance policies.
Does bobtail insurance cover damage to my truck?
No, it only covers costs associated with liability. If you are involved in an auto accident while bobtailing, physical damage to your truck is not covered by this type of policy.
When driving a truck without a trailer while under someone else’s trucking authority, you will not be covered by your general liability or trucking liability insurance if you are involved in an accident. Instead, you will need bobtail insurance.
By understanding the cost of bobtail insurance, what it covers, and who needs it, you can make sure you are always covered when driving your truck.
Truck drivers typically pay between $20 and $50 in monthly premiums for bobtail insurance. This rate may vary depending on industry experience, claim history, business size, and other factors.