Truck Insurance FAQ

What is the difference between primary liability and secondary liability?

The difference is that primary liability is protection for the public and is also required by the FMCSA to obtain your own authority. While secondary liability coverage is required by your motor carrier and only covers you under a permanent signed lease with the motor carrier.

What is the minimum coverage needed to get my authority?

The FMCSA requires $750,000 primary liability coverage, however most shippers require $1,000,000 in order for a trucker to load. The most common request for cargo is $100k; however this depends on what you will be hauling and who you will be hauling for.

What coverage is needed to get my truck tags?

In order to get your truck tags, you must have primary liability coverage. Furthermore, if you are running under your own authority, you may want to have this coverage under your name. If you have leased from a motor carrier, you may then have this coverage through your carrier.

What is the purpose of obtaining Physical Damage if my truck is parked and there is no lien holder?

Physical damage will cover the investment you have made in your own truck. This covers a variety of perils other than the accident including; fires, theft, wind, hail, and vandalism.

Can I get my own cargo and primary liability when I have leased to a motor carrier?

The FMCSA requires the motor carriers whose authority you may be running under to obtain both Primary Liability and Cargo coverage. Of course, the motor carrier may charge you for this coverage option. It is advised to review any lease agreements carefully before signing then in order to determine the fees you will be charged for.

Can I use bobtail liability to get my truck tags?

In most stages, you will be required to prove financial responsibility, which is the Primary Auto Liability Insurance, rather than Bobtail Liability. Of course, you may be able to get by using proof of Bobtail liability depending on who is working at your DMV.

What is my truck valued at and what is the difference between actual cash value and stated limit?

A Stated Limit Policy is when the insured individual or entity places a value on their equipment. During the event of a loss, this policy will pay for either the actual cash value or the stated limit, typically whichever is the lesser amount. This stated limit policy runs the risk of over or under-insuring equipment.

What type of insurance do I need to run under my own authority?

Typically, Auto Liability and Cargo insurance are the two most important types of coverages required to run your own authority. Other types of coverages may be required in contracts with brokers and shippers.

What type of insurance do I need if I lease from a motor carrier?

Yes, the FMCSCA requires all automobile hauling operations to carry a minimum of $1,000,000.00 in Liability. Cargo limits are usually higher than the typical $100k and would need to be determined based upon several different factors including your shipper and broker requirements, the type of automobiles that will be hauled, and how many vehicles will be hauled.

Do I need to have bobtail liability if I haul under my own authority?

No, as long as the Primary Auto Liability is in your own name, or your corporation and you are the owner of the truck you will not be required to carry bobtail liability.

Contact an Experienced Phoenix Truck Accident Attorney Today

At Phillips Law Group, our attorneys believe that if you or a family member has been injured in a truck accident, the victim may be entitled to compensation for their losses and damages. Our attorneys will work relentlessly to recover the maximum compensation benefits allowed, while seeking the justice you deserve for your losses and damages.

Based in Phoenix, Arizona, our attorneys are able to serve throughout the entire state and elsewhere. Some of the local Phoenix areas our attorneys serve include:

• Beardsley
• Circle City
• Cotton Center
• Glendale
• Maricopa
• Mesa
• Sun City
• Tempe
• Wittmann

If you have more questions about truck insurance, or have been injured in a truck accident, our attorneys welcome you to contact our firm with any questions by calling 1-800-706-3000 today. Alternatively, if you would rather have our law firm contact you, simply complete the Free Case Review form located on this page. This form is completely free to submit and all information entered will remain completely confidential between you and our law firm.