Insurance Terms Explained

Obtaining the required insurance coverage and filings can be a confusing and frustrating experience even for the veterans of the transportation industry, let alone for new ventures. We, at RIG Quote, want to make it easy and quick for truckers to insure their rigs and their businesses. We want to simplify trucking insurance. The founders have years of experience in the trucking insurance business. We used to work for big insurance companies and witnessed first-hand how convoluted, confusing and time consuming the insurance process is. Surely, there must be an easier way to service the insurance needs of the trucking community. So we decided to put our ideas together and started RIG Quote. Our goal is to invest in the systems and relationships that will allow truckers to get a quote online and buy their coverage in less than an hour – much like it is for personal auto insurance. In the process we are using technology to eliminate inefficiencies and pass the bulk of these savings to our customers. We have built systems and processes that currently allow truckers to get an idea of what their insurance coverage will cost and, in most cases, be able to bind coverage the same day. Give us a try, click on the Instant Quote button to get your quote in less than 5 minutes!

 Below and throughout our site, you will find valuable information on what different insurance options mean and what you can do to save money on your policy costs. Should you have any questions, please give us a call and one of our friendly and knowledgeable team members will walk you through your options. 

BODILY INJURY/PROPERTY DAMAGE COVERAGE (BI/PD)

Bodily Injury Liability provides coverage in the event a covered vehicle causes injury or death to another person and the insured is considered at-fault for the accident. It covers expenses related to medical costs, lost wages, sickness, death and pain and suffering for an injured third party. It also covers legal defense costs related to claims against covered damages.

Property Damage Liability provides coverage in the event a covered vehicle causes damage to any property and the insured is considered at-fault for the accident. It also covers legal defense costs related to claims against covered damages.

UNINSURED/UNDERINSURED MOTORISTS COVERAGE (UM /UIM)

UM/UIM provides coverage for damages which an insured is legally entitled to recover from another party who is considered at-fault for an accident, but is uninsured or underinsured for the level of damages.

RENTAL REIMBURSEMENT COVERAGE

Rental Reimbursement provides reimbursement for a maximum of 30 days for rental vehicle costs incurred to temporarily replace an insured vehicle due to a covered loss. Reimbursement is per loss, per vehicle and is the lesser of the rental cost and the daily maximum limit. Available limits will vary based on weight class.

PHYSICAL DAMAGE COVERAGE

Collision provides coverage in the event of a loss or damage to an insured vehicle caused by a collision or overturn. Collision must be written with Comprehensive or Fire and Theft with CAC.

Comprehensive provides coverage in the event of a loss or damage to an insured vehicle caused by incidents other than a collision. This includes damages due to fire, theft, vandalism, windstorm or contact with an animal.

Fire and Theft with Combined Additional Coverages provides coverage in the event of a loss or damage to an insured vehicle caused by a specific occurrence. The damage or loss must be caused by: fire, lightning or explosion; theft; windstorms or hail; earthquakes; flood or rising waters; vandalism; while being transported by a third party; or by a collision with an animal. The limit of liability and rate are based upon a vehicle’s Stated Amount (not cost new).

The Stated Amount on a Commercial policy should reflect a vehicle’s current retail value including any special or permanently attached equipment. Using Stated Amount provides a superior value by allowing our insureds to customize their policy to accurately capture a vehicle’s true value. The easiest way to establish a Stated Amount is to consult a book or other publication. Other possibilities include consulting with a dealer/manufacturer or checking Internet sites. When determining Stated Amount, remember to take condition, mileage and location into consideration. Also consider any vehicle upgrades, engine or major component rebuilds that could further increase a vehicle’s value. Possible resources include*:

COMPREHENSIVE ONLY COVERAGE

Comprehensive Only coverage is designed for seasonal businesses that do not operate year round and store  their vehicles for prolonged periods. Coverage protects vehicles in the event of damages due to fire, theft, vandalism, windstorm or contact with an animal. Comprehensive Only coverage applies to all vehicles on a policy.

MEDICAL PAYMENTS COVERAGE

Med Pay provides coverage for certain medical and funeral expenses for all those occupying a covered vehicle involved in an accident regardless of who is at fault.

TRUCK AND TOW COVERAGES

Cargo covers a for-hire trucker’s liability for the property of others being transported. See the policy for complete coverage information. Coverage is for cargo that is lost or damaged due to:
› Theft
› Fire
› Collision
› Striking of a load
› Debris removal after a load is dumped on the highway
› Earned freight to replace wages lost as a result of not delivering the load
› Reloading expenses to put a load back on the truck

MOTOR TRUCK GENERAL LIABILITY COVERAGE (GENERAL LIABILITY )

General Liability provides liability protection on risks only for injuries or property damage sustained while on
premises, using products or services. It provides coverage for personal and advertising injury, in addition to products and completed operations coverage.

NON-TRUCKING LIABILITY COVERAGE (NON-TRUCK)

Non-Trucking (contingent liability) provides coverage to an insured on permanent lease to a motor carrier that supplies primary liability coverage, when using his/her listed vehicle for non-business, personal use. (Although this ] coverage is often referred to as “bobtail insurance”, technically it is not the same coverage. Bobtail insurance covers the tractor when it’s being operated without a trailer, whether or not it’s under dispatch.)

TRAILER INTERCHANGE COVERAGE

Trailer Interchange covers physical damage to any non owned trailer while in the care, custody or control of the insured.

RENTAL REIMBURSEMENT WITH DOWNTIME COVERAGE FOR TRUCK

This coverage provides reimbursement for a maximum of 30 days for rental costs incurred to temporarily replace an insured vehicle due to a covered loss. Reimbursement is per loss, per vehicle and is the lesser of the rental cost and the daily maximum limit. If a reasonable replacement vehicle cannot be located, the insurance company will
pay the vehicle’s daily rental limit during downtime. If you elect not to make use of a reasonable replacement
auto, there is a waiting period of six days before we will pay the vehicle’s daily rental limit during downtime. There is no waiting period for rental reimbursement or in cases where the insurance company is unable to locate a reasonable replacement auto.

EMPLOYER’S NON-OWNERSHIP LIABILITY COVERAGE (TRUCK)

Employer’s Non-Ownership provides excess liability coverage to an insured for employees using their own (unlisted) vehicles incidentally in the course of the named insured’s business.

ON-HOOK TOWING LIABILITY COVERAGE

On-Hook Legal Liability is a towing-specific coverage that provides physical damage (Comprehensive and Collision) coverage for towed autos and property in the insured’s custody and control. Coverage is provided for transmission/ transaxle damage. The coverage provides protection to the named insured when found liable for damage resulting from a covered Comprehensive or Collision loss.

ON-HOOK DIRECT EXCESS COVERAGE

On-Hook Direct Excess is a towing-specific coverage that provides Physical Damage (Comprehensive and Collision) coverage for towed autos and property in the insured’s custody and control. Coverage is provided for transmission/transaxle damage. Coverage is provided without regard to the insured’s
legal liability for loss to the towed auto and is excess over any other collectible insurance.

ON-HOOK DIRECT PRIMARY COVERAGE

On-Hook Direct Primary is a towing-specific coverage that provides Physical Damage (Comprehensive and Collision) coverage for towed autos and property in the insured’s custody and control. Coverage is provided for transmission/ transaxle damage. Coverage is provided without regard to the insured’s legal liability for loss to the towed auto and is primary

GARAGEKEEPERS LEGAL LIABILITY COVERAGE

Garagekeepers Legal Liability is a towing-specific coverage that provides Physical Damage (Comprehensive and Collision) coverage in the event of a loss to an insured’s customer’s vehicle left in the care, custody and control of the insured while at a covered location or in transit between covered locations. A covered location must be listed on the policy. The coverage provides protection to the named insured when found liable for damage resulting from a covered Comprehensive or Collision loss.

GARAGEKEEPERS DIRECT EXCESS COVERAGE

Garagekeepers Direct Excess is a towing-specific coverage that provides Physical Damage (Comprehensive and Collision) coverage in the event of a loss to an insured’s customer’s vehicle left in the care, custody and control of the insured while at a coverage location or in transit between covered locations. A covered location must be listed on the policy. The coverage is provided without regard to the insured’s legal liability for loss to the towed auto and is excess over any other collectible insurance

GARAGEKEEPERS DIRECT PRIMARY COVERAGE

Garagekeepers Direct Primary is a towing-specific coverage that provides Physical Damage (Comprehensive and Collision) coverage in the event of a loss to an insured’s customer’s vehicle left in the care, custody and control of the insured while at a coverage location or in transit between covered locations. A covered location must be listed on the policy. The coverage is provided without regard to the insured’s legal liability for loss to the towed auto and is primary.

BUSINESS AUTO COVERAGES

Hired Auto provides excess liability coverage for a non-owned, unlisted vehicle the insured has leased, hired, rented, or borrowed. See the policy for details.

ANY AUTO LEGAL LIABILITY COVERAGE

Any Auto provides liability protection for any owned vehicle listed or acquired during the policy period, and includes both Hired Auto and Employer’s Non-Ownership coverages. For Individual Named Insureds, coverage applies to an unlisted vehicle while used in the business.

Individual Named Insured coverage is included automatically, free of charge, when the named insured is an individual AND chooses ‘personal’ use for a listed private passenger type auto. This coverage extends excess liability coverage to other non-owned passenger type autos when driven by the named
insured or a resident relative. Physical Damage coverage is also extended if it was purchased for the listed non-business vehicle. The vehicle cannot be owned by the named insured, spouse or any household resident, nor be available for regular use.

Drive Other Car is excess coverage that extends the scope of certain purchased coverages to scheduled individuals who reside with the executives of a Partnership or Corporation. Included coverages: Liability to Others, Medical Payments, Uninsured and Underinsured Motorists (where applicable) and Physical Damage coverage.

TRANSPORTATION EXPENSES COVERAGE

Transportation Expenses provides coverage for temporary transportation expenses incurred as a result of an insured auto being stolen. Coverage begins 48 hours after the theft is reported and ends when the insured auto is returned to the insured, or the vehicle is paid as a total loss.

ROADSIDE ASSISTANCE

Emergency Roadside Assistance coverage provides payment for an authorized service representative to provide:
› Towing of a covered disabled vehicle to the nearest qualified repair facility, or to any facility within 15 miles; and
› Labor on a covered disabled vehicle at the place of disablement, including: battery jump-start, flat tire change, emergency fuel and fluid delivery* and locksmith service* when necessary due to a covered emergency.