The Importance of Bobtail Insurance for Commercial Truckers

A workplace’s commercial auto insurance can protect truckers when they’re on the job, but what about after cargo is delivered? In such cases, other insurance may be needed.

Bobtail insurance is a specific type of auto liability insurance designed to protect commercial truck drivers when they are not under dispatch. The phrase “not under dispatch” means that the truck is not currently transporting goods or cargo for a company. 

What Does Bobtail Insurance Cover?

Bobtail insurance can provide coverage for legal fees, third-party medical costs and damages if a truck driver is involved in an accident while not under dispatch. This may include times when the driver travels between jobs, returns to their home base after completing a delivery, or even when the truck is used for personal errands.

It’s important to note that bobtail insurance typically does not cover damage to the truck itself. That would fall under a different type of insurance, such as physical damage coverage. Your insurance agent can help assess how you use your truck and recommend sufficient coverage.

Who Needs Bobtail Insurance?

Bobtail insurance may be relevant to owner-operators who lease their trucks to motor carriers. The motor carrier’s insurance will often cover the truck while it is under dispatch. However, once the job is completed, the truck might not be covered. This is where bobtail insurance comes in.

Owner-operators who have their own authority and do not lease their trucks to a motor carrier may also need bobtail insurance. Even though they might have primary liability insurance, there could be gaps in coverage when the truck is not transporting cargo. Your Pan American Insurance agent can help determine your needs.

Why Is Bobtail Insurance Important?

Bobtail insurance is important because it can fill in the gaps in coverage that other types of insurance might leave. Accidents can happen at any time, not just when a truck is transporting cargo. Without bobtail insurance, a truck driver could be left to cover the costs of an accident out of pocket, which can be financially devastating.

Where Can I Get Bobtail Insurance?

Bobtail insurance can be crucial to a commercial trucker’s insurance portfolio. It may provide essential protection when other insurance policies do not apply. As with any insurance decision, truck drivers should consult with a knowledgeable insurance agent to ensure they have the coverage that best fits their needs.

Pan American Insurance is standing by to assist you with finding the proper coverage for your trucking needs. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.