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Risky Business

What's the difference?

By Shelly Benisch, CIC with Commercial Insurance Solutions (CIS)
Posted Jun 23rd 2010 5:07AM

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Hi Everyone,

I thought I'd follow up today on my last blog to help everyone understand the main differences between the insurance plan that is offered to you through your Motor Carrier, or "in house" plan, versus one that you buy on your own.

This is in general, because various private plans can differ, but this gives you a good overall view:

Your Motor Carrier offers you a NTL or Non Truck Liability plan that covers you for getting to and from your next point of pickup of a load .  They generally frown on anyone using the vehicle for personal usage.

For example, you may want to use your vehicle to help a buddy move some furniture, or take your Grandson fishing or camping.  Passenger coverage is INCLUDED on a policy you purchase for yourself, it is generally EXCLUDED through an inhouse plan.

Turning to coverage of the vehicle itself, a policy you own should include coverage for your Qualcom or APU unit as "Permanently Attached Equipment" in addition to the value of the vehicle.

You should also have less out of pocket expense in event of a claim because you can choose a deductible as low as $100 for Comp.  Comprehensive or "Comp", is expansive and includes fire, theft, flood, vandalism, animals, windshields.  Sometimes windshields are free if it's just a chip.

You have more options on a policy you purchase yourself.  You may want Roadside Assistance or Downtime Coverage in event of an accident.  While your vehicle is repaired you have daily income up to $175 per day.

You should also receive personal agency care when you own your own policy.  Your agent should work for you.  An example would be if you are hit by someone else and your vehicle is down, your agent should be helping you get Loss of Use from that other insurance company. 

Finally, your own policy can often save you money, with control is the major difference.  An inhouse plan is controlled by the Motor Carrier and your own policy is owned by you.  There is the advantage of control regarding increasing your coverage as you see fit, portability of the policy itself, and most importantly, it helps to identify you as an Independent Contractor versus an Employee.

Next time I'll talk about the Employee Misclassification Prevention Act or E.M.P.A., that was just re-introduced and amended on House Bill S3254.  Talk to you soon!  Shelly

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