One vehicle type that will always require a commercial auto policy is a dump truck. You don’t encounter too many people using their dump trucks for personal use. For this reason you will see dump trucks insured under commercial auto policies.
First it is important to make sure that the registered owner of the vehicle is also the policyholder. Just as in personal auto insurance policies, the correct owner should be listed as the named insured. If your vehicle is registered in your business name, then you should also insure it in the business name instead of your personal name.
Next, you should determine what coverages you need. We will discuss the most important types here.
Physical damage(comprehensive and collision) is required if you are making payments on the dump truck through a bank. Even if you own the vehicle free and clear and there is no bank, you should still strongly consider insuring the vehicle for comprehensive and collision losses. Most commercial companies will ask you for a stated amount for each vehicle requesting this coverage type. Stated amount is simply the value of the vehicle today. In the event of a loss, the insurance company will pay the value of the vehicle minus the deductible you choose on the policy.
Liability coverage is the part of your insurance policy that is required by the state before you can even get your tag. Most common limits of liability chosen on a dump truck policy would be either $750,000 or $1,000,000. The North Carolina Department of Motor Vehicles (NC DMV) will determine what limit of liability is required. To determine the required limit of liability you will need to provide them the following:
Other coverages include medical payments for drivers or passengers, Un/underinsured motorist coverage covers your bodily injury and property damage to your truck caused by an uninsured driver or under-insured driver.
-Gross vehicle weight(GVW) of the vehicle. This is the total weight of the vehicle when fully loaded to manufacturer’s recommendations.
-Radius that the vehicle will be driven. This is the typical one-way mileage driven to each destination.
-The items you will be hauling. For example dirt, sand, and gravel.
-Whether or not you will be crossing state lines.
Here in NC there are many state and city projects that are calling heavily on dump truck operators. Here in Charlotte alone there is the light rail project, Interstate 485 expansion, and the Independence Blvd expansion just to name a few. Rates for dump trucks are very affordable. Much more than you might expect. If we can help with any of your dump truck insurance questions please don’t hesitate to give us a call at 704-494-9495.