Commercial vehicles play a crucial economic role and are essential for many businesses. They facilitate the transportation of goods locally and nationally, but sometimes these vehicles are involved in accidents. When this happens, companies must ensure they are adequately covered with the right type of insurance. California has commercial truck insurance requirements, and businesses must understand what they are.
California requires commercial trucks to be insured with a liability policy. This means the policy should include coverage for bodily injury or property damage caused by the truck in an accident. In this blog, we will talk about the importance of commercial truck insurance and the requirements of this insurance policy.
Importance of Commercial Truck Insurance in California
The American Trucking Associations report shows that in 2020, trucks carried 10.23 billion tons of primary shipments, making up 72.5% of all transported weight in the U.S. They also found that trucks are the main way goods are transported between the U.S. and Canada and Mexico, confirming the importance of the trucking industry for U.S. freight transportation.
If your business owns vehicles, it is required by California law to have at least auto liability insurance. With it, your business could avoid legal and financial problems. This insurance policy includes damage to the other vehicle or property, medical bills, lost wages, pain and suffering, and additional related costs, which can be quite costly.
Who Needs Commercial Truck Insurance?
If you own or use a truck for commercial purposes, it is highly recommended to buy commercial truck insurance. This applies to single truck contractors and businesses with a truck fleet, as there is a significant risk of experiencing costly events that could result in financial loss.
Make sure you have enough insurance coverage if any of these situations apply to you:
- You either own or are in charge of operating a truck for commercial purposes.
- You are utilizing your truck for business-related activities.
- Your truck can be used for transporting either cargo or passengers.
- You are a trucking contractor.
- Commercial truck insurance is mandatory in your state.
What are the California Commercial Truck Insurance Requirements?
California has strict insurance requirements for commercial trucking companies and drivers to protect its citizens.
To clarify, commercial trucks in California have varying insurance requirements depending on the type of freight they carry. If a commercial truck driver is solely driving within California and their vehicle weighs more than 10,000 GVW, they must have an intrastate identification number and liability insurance that aligns with the type of freight they are carrying:
- Oil transportation liability insurance of $1,000,000.
- $5,000,000 in liability insurance for moving dangerous goods.
- Liability insurance for general freight transportation of $750,000.
- $300,000 in liability protection for moving home items.
- $20,000 per vehicle, plus $20,000 per catastrophe for cargo insurance.
Get Your Commercial Insurance Policy from Pronto!
Because of the significant risks associated with operating a commercial truck in California, it is important to ensure you have the right insurance policy. Pronto Insurance offers comprehensive and affordable insurance policies that meet all of California’s requirements. You can get your customized truck insurance policy from Pronto today!
Pronto Insurance also provides great customer support and competitive prices. We are here to make sure your business is properly insured so you can focus on the important things, like growing and running your business! Get in touch with us today to get reliable commercial truck insurance coverage in California!
