How to Read Your Trucking Insurance Policy
Your policy is 40+ pages of dense legal language. Nobody reads it — until something goes wrong and they discover what's not covered. Here's how to read the parts that actually matter.
Anatomy of a Trucking Insurance Policy
A commercial trucking insurance policy isn't one document — it's a stack of documents. Each piece has a specific purpose. Here's what you're looking at:
Declarations Page (Dec Page)
Your policy snapshot — who's insured, what's covered, how much, effective dates. This is the most important page in your entire policy.
Insuring Agreement
The broad promise of what the insurance company agrees to cover. Written in general terms — the details come from everything below.
Conditions
Your responsibilities — what you have to do to keep coverage valid. Report accidents promptly, cooperate with investigations, pay premiums on time.
Exclusions
What's NOT covered. This is where policies bite you. Read every exclusion. If you don't understand one, call your agent and ask.
Endorsements
Modifications that add, remove, or change coverage. MCS-90, hired auto, rental reimbursement — all added by endorsement. These override the base policy.
Schedule of Vehicles / Equipment
Every truck, trailer, and piece of equipment covered by the policy. If a vehicle isn't listed, it's not covered. Check this carefully when you add or sell equipment.
The Declarations Page (Start Here)
If you only read one page of your policy, read the dec page. It's the summary of everything — and it's where most misunderstandings happen.
Named Insured
Your business name and legal entity. This must match your USDOT registration exactly. If your LLC name is different from your DBA, make sure the right one is listed. Claims can be denied if the named insured doesn't match.
Policy Period
Start and end dates of your coverage. Most commercial policies run 12 months. Note the exact time — policies typically start and end at 12:01 AM. Don't let coverage lapse even for a day — FMCSA monitors this and can revoke your authority.
Coverage Summary
Each coverage type listed with its limit and deductible. This is where you verify you actually have what you think you have. Common items:
Listed Vehicles
Every truck and trailer covered, with VIN, year, make, model, and stated value. When you add or sell equipment, your agent needs to update this immediately. A truck that's not on your dec page has no coverage.
Listed Drivers
Every authorized driver. Unlisted drivers may not be covered in an accident. When you hire a new driver, add them to the policy BEFORE they drive. Not after their first run — before.
Premium Breakdown
What you're paying for each coverage. Useful for understanding where your money goes and which coverages cost the most. If you need to reduce costs, this tells you where the dollars are.
Understanding Your Coverage Sections
Each coverage type in your policy has specific language about what it covers, how much, and under what conditions. Here's what to look for in each.
Auto Liability
What it covers: Damage you cause to other people and their property while operating your truck. Bodily injury and property damage to third parties.
What to check:
- Limit: Minimum $750K for interstate (FMCSA), but $1M is standard. Hazmat carriers need $1M or $5M.
- CSL vs split limits: CSL (Combined Single Limit) means one pool for all damages. Split limits (like 100/300/100) cap each type separately. CSL is simpler and usually better.
- Hired auto coverage: If you ever rent or borrow a truck, make sure this is included.
Physical Damage
What it covers: Damage to YOUR truck. Split into Comprehensive (fire, theft, weather, vandalism, animal strikes) and Collision (you hit something or something hits you).
What to check:
- Valuation: ACV (Actual Cash Value) vs Stated Amount vs Agreed Value. ACV means the insurer decides what your truck is worth — and it depreciates. Stated Amount gives you a number but they can still pay less. Agreed Value means you both agree upfront.
- Deductible: Usually $1,000-$5,000. Higher deductible = lower premium. Make sure you can actually afford the deductible out of pocket.
- Towing coverage: Usually included but verify the limit. $5,000 is standard. Heavy-duty towing can exceed this.
Cargo Insurance
What it covers: Freight you're hauling that gets damaged, destroyed, or stolen while in your custody.
What to check:
- Commodity restrictions: Does your policy cover everything you haul? Refrigerated, hazmat, high-value goods, and alcohol often need specific endorsements.
- Reefer breakdown: Standard cargo doesn't cover mechanical breakdown of your reefer unit. You need a specific endorsement for refrigerated spoilage.
- Loading/unloading: Does coverage apply while cargo is being loaded or unloaded, or only in transit?
- Limit per occurrence: $100K is standard. High-value loads may need $250K or more.
General Liability
What it covers: Non-driving business liability. Someone slips at your yard. You damage a dock while loading. A product you deliver causes harm.
What to check:
- Per occurrence vs aggregate: Per occurrence is the max for any single incident. Aggregate is the max for all incidents during the policy period. $1M/$2M is standard.
- Completed operations: Covers liability after you've delivered and left. Important if cargo causes damage later.
Exclusions — What's NOT Covered
This is where policies bite you. An exclusion means the insurer will NOT pay, no matter what. Here are the most common exclusions in trucking policies — and why they matter.
Intentional Acts
Damage you cause on purpose is never covered. This seems obvious, but it also applies to reckless behavior that a court determines was "intentional" — like driving while seriously impaired.
Unlisted Vehicles
If the truck involved in the accident isn't on your policy, there's no coverage. This catches people who buy a new truck and "forget" to add it, or who let someone drive a truck that isn't scheduled.
Excluded Drivers
Some policies specifically exclude certain drivers (often those with poor driving records). If an excluded driver is behind the wheel during an accident, the claim is denied.
Racing or Speed Contests
Your commercial policy doesn't cover racing. Less obvious: some policies exclude coverage if you were significantly exceeding the speed limit when the accident occurred.
Pollution/Environmental Damage
Standard auto liability typically excludes pollution cleanup. If you're hauling fuel, chemicals, or anything that could spill and cause environmental damage, you need a separate pollution liability endorsement.
War, Nuclear, Terrorism
Standard exclusion in every policy. Unlikely to affect you, but worth knowing it's there.
Personal Use
If your commercial policy excludes personal use and you use the truck for non-business purposes (weekend trip, moving a friend's furniture), an accident during personal use may not be covered.
Wear and Tear / Mechanical Breakdown
Physical damage covers sudden events (collision, fire, theft) — not normal wear, rust, mechanical failure, or tire blowouts caused by lack of maintenance.
Endorsements — The Modifiers That Matter
Endorsements are add-ons that change your base policy. They can add coverage, remove exclusions, or modify terms. Some are required by law; others are optional but extremely valuable.
MCS-90
Required by FMCSA for all for-hire interstate carriers. Guarantees the insurer will pay liability claims up to the federal minimum ($750K), even if there's a coverage issue. This protects the PUBLIC, not you — the insurer can (and will) come after you for reimbursement.
BMC-91 / BMC-91X
The filing form that proves to FMCSA you have insurance. BMC-91 is the standard form. BMC-91X is a broader form some carriers use. Your insurer files this directly with FMCSA — it's how they know you're covered.
Rental Reimbursement
Pays for a rental truck while yours is being repaired from a covered claim. Typically $100-$300/day for up to 30-60 days. Costs $200-$600/year. The single best endorsement for the money.
Gap Coverage
If your truck is totaled and you owe more than it's worth, gap coverage pays the difference. Without it, you're making payments on a truck you can't drive.
Hired Auto
Covers liability when you're driving a truck you don't own — rental, borrowed, or leased short-term. Important if you ever rent a truck to keep hauling during repairs.
Trailer Interchange
Covers physical damage to trailers you don't own but are hauling under a trailer interchange agreement. Without this, you're responsible for any damage to someone else's trailer.
Reefer Breakdown
Covers cargo spoilage when your refrigeration unit fails mechanically. Standard cargo insurance only covers external events (accidents, theft). If you haul temperature-sensitive loads, you need this.
Additional Insured
Adds another party (broker, shipper, lessor) to your policy as an insured. Brokers often require this. It doesn't cost extra coverage — it extends your existing coverage to protect them too.
Deductibles — What You Pay Before Insurance Kicks In
Your deductible is the amount you pay out of pocket before insurance starts covering a claim. Choosing the right deductible is a real business decision.
| Coverage | Typical Deductible | What This Means |
|---|---|---|
| Auto Liability | Usually $0 | No out-of-pocket for liability claims. The insurer pays from dollar one. |
| Physical Damage - Comp | $1,000 - $2,500 | You pay this before fire, theft, weather, or vandalism coverage kicks in. |
| Physical Damage - Collision | $1,000 - $5,000 | You pay this before collision damage is covered. Higher deductible = lower premium. |
| Cargo | $250 - $1,000 | You pay this per cargo claim. Usually lower than physical damage deductibles. |
| General Liability | $0 - $500 | Many policies have no deductible for GL claims. Check yours. |
The Deductible Math
Raising your collision deductible from $1,000 to $2,500 might save $500-$1,000/year in premium. But if you have an accident, you pay $1,500 more out of pocket. If you go 2+ years without a collision claim, the higher deductible saves you money. If you have a claim in year one, you lose.
Rule of thumb: Set your deductible at the maximum you can comfortably pay out of pocket without borrowing. If you have a $5,000 emergency fund, a $2,500 deductible makes sense. If you're living paycheck to paycheck, keep the deductible at $1,000.
Red Flags to Look For
When reviewing your policy, watch for these warning signs that something might not be right.
Named Insured Doesn't Match Your USDOT
If your policy says "John Smith" but your USDOT is under "Smith Trucking LLC," you could have a coverage issue. The named insured should match your FMCSA registration exactly.
Trucks Missing from the Schedule
Every truck you own or operate should be listed. If you bought a truck 6 months ago and it's not on your dec page, it's not covered.
"Surplus Lines" or Non-Admitted Carrier
Non-admitted carriers aren't backed by your state's guaranty fund. If they go bankrupt, your coverage disappears and you're not protected. Progressive, BHHC, National Indemnity — these are admitted carriers. If you've never heard of your insurance company, check their AM Best rating.
Coverage Gaps Between Policies
If you're switching carriers, make sure the new policy starts the EXACT day the old one ends. Even a 1-day gap triggers FMCSA alerts and can result in authority suspension.
Radius Restrictions
Some policies limit your operating radius (e.g., 500 miles from your base). If you operate outside that radius and have an accident, the claim could be denied. Know your radius limitation and make sure it matches how you actually operate.
Unusually Low Premium
If your quote is dramatically cheaper than everyone else's, something is missing. Maybe it's a non-admitted carrier, a restrictive radius, a high deductible you didn't notice, or excluded coverage you need. Cheap insurance isn't cheap if it doesn't pay when you need it.
Questions to Ask Your Agent
A good insurance agent should be able to answer all of these without hesitation. If they can't — or won't — you need a better agent.
- "What exactly is covered and what isn't? Walk me through the exclusions."
- "Is my carrier admitted in my state? What's their AM Best rating?"
- "What happens if I add or sell a truck mid-policy?"
- "Do I have rental reimbursement? What's the daily limit and how many days?"
- "What's my radius restriction? What happens if I go outside it?"
- "Is my cargo policy broad form or named perils? Does it cover reefer breakdown?"
- "What's my deductible for each coverage type?"
- "How does the claims process work? Who do I call first?"
- "What endorsements do I have? What endorsements should I consider adding?"
- "What happens to my rate if I have a claim?"
- "When does my policy renew and how much notice will I get?"
- "Do I have gap coverage if my truck is totaled and I owe more than it's worth?"
Get Coverage You Actually Understand
We don't just sell you a policy and disappear. We explain what you're buying, why it matters, and what to watch for. That's what a real insurance partner does.