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About OOIDA
The Owner-Operator Independent Drivers Association (OOIDA) has been fighting to defend the rights of small business truckers since 1973.

Posts by OOIDA

Now is a good time for an insurance review

By OOIDA -

Written by Deborah Graves, OOIDA Truck Insurance Department Did you make any New Year’s resolutions for 2024? Let us make a suggestion. It’s the one about money — saving more and wasting less. With this in mind, now is a good time to think about your truck insurance. Can you trust your agent? Do you have the coverage you need? Is the rate competitive? Are you getting the most value for the money you’re spending? The answers to these questions will help you determine whether you’re on your way to keeping that important resolution to save more and waste less. Check out a prospective agency by asking a few pertinent questions, such as: Does the agency specialize in truck insurance? How long have they been in business? What coverages are offered, and how much do they cost? Do they charge additional fees to service your policy? Talk about to your agent about your specific trucking operation and don’t be shy about asking for an explanation of anything that you don’t understand. A good agent will always try to find out all he or she can about your trucking business in order to assess your needs. If you feel rushed or less than confident regarding the agent’s ability to provide answers to your questions, you’re probably with the wrong agent. If you’re a leased owner-operator who’s tempted to buy insurance through your motor carrier, consider what would happen if the carrier goes under or simply decides to terminate your lease. Once that contract is canceled, so is your insurance. Worse yet, if your motor carrier goes broke, you’ll lose not only your coverage, but probably any escrow that you have as well. If your bank or finance company offers insurance, should you go for it? Probably not. You wouldn’t go to an auto mechanic for heart surgery, would you? So why go to a lending institution for your truck insurance? Insurance agencies specialize in providing coverage to protect the investment you have in your equipment, while banks just want to make sure their own financial interests are insured. In addition, banks might also assess finance charges or administrative fees that waste your hard-earned money. Trust your own instincts. You’re the one who’s best equipped to know what you need and how you want to be treated by your insurance agent. After all, you’ve been making important decisions like this for most of your life. Did you know that any profits from the insurance program at OOIDA goes right back to the association to fight for your rights? It’s very common for other truck insurance companies to support proposals like speed limiters. Not OOIDA. You can reach an OOIDA truck insurance agent Monday through Friday, from 7:30 a.m. to 5:30 p.m. CST, at 800-715- 9369. Do you have an insurance topic you would like to know more about? If so, email us at [email protected]. We will cover a new topic each month and will do our best to address everyone’s questions.

Redefining commercial trucking insurance

By OOIDA -

For decades, the Owner-Operator Independent Drivers Association (OOIDA) has been a pillar in the trucking industry, not just because of the group’s advocacy work, but also as a leading provider of cost-effective commercial truck insurance for independent owner-operators. Empowering independent truck drivers OOIDA’s journey in truck insurance began out of necessity. Prior to 1973, small trucking businesses struggled with expensive — and often unreliable — insurance options. Recognizing the need for fair, trustworthy coverage, OOIDA established its insurance division, Owner-Operator Services Inc. (OOSI), in the late 1980s. Since then, OOSI has grown into a top commercial insurance provider in the U.S. Tailored insurance for small trucking businesses Understanding the unique challenges of small trucking operations, OOIDA has designed insurance policies that cater to their specific needs. These insurance plans, backed by the extensive experience of OOSI agents, offer comprehensive coverage without the financial strain of large upfront payments. Advocacy through insurance Choosing OOIDA’s insurance services extends beyond individual protection. It contributes to the broader mission of advocating for fairer industry practices and regulations. Unlike other providers focused on profit, OOIDA reinvests insurance revenues into efforts to create a more equitable trucking industry. Comprehensive coverage options OOIDA’s insurance plans cover a range of needs for owner-operators and leased operators. Options include personal property, gap coverage, roadside assistance and more, ensuring truckers are comprehensively protected. You can reach an OOIDA truck insurance agent Monday through Friday, from 7:30 a.m. to 5:30 p.m. CST, at 800-715- 9369. Do you have an insurance topic you would like to know more about? If so, email us at [email protected]. We will be covering a new topic each month and will do our best to address everyone’s questions.

What’s up with downtime insurance?

By OOIDA -

By Deborah Graves, OOIDA Insurance Department Let’s talk about downtime insurance coverage … specifically, why some truck drivers find it’s like pulling teeth to get paid for it when they have a claim. First, here’s a definition: “Downtime insurance will indemnify the Insured following a collectible loss to a covered automobile under Automobile Physical Damage but only for such period of time that the covered automobile is inoperable thus rendering the Insured incapable of utilizing said covered automobile or any replacement thereof.” If you’re a truck driver with downtime coverage from your insurance provider, you are probably already aware that your policy has a specific limit that includes a maximum. Therefore, when you file a claim, you’ll have written evidence of coverage limits and conditions for payment. If you have read over the policy and consulted your agent on any coverage questions, you shouldn’t experience any unpleasant surprises when it comes to being paid for your downtime. Unfortunately, the same is not necessarily true when you get hit by an at-fault driver who causes damage to your truck, resulting in downtime for repairs and loss of income for you. Although the at-fault driver’s liability insurance provider is responsible, some truck drivers have told us it’s not so easy to collect for their downtime loss. On the one hand, the trucker is losing money because their truck is damaged. Bills are piling up that would normally be paid if only they could get on the road again. On the other hand, the adjuster wants to keep as much money for the insurance company as they can — so whether or not they hand over a check for downtime will likely depend upon whether the trucker can prove their loss(es). Can the trucker show proof their loss of income is as much as they claim? Sometimes, unreasonable expectations hinder the payment of downtime. You must be willing and able to prove your loss; the insurance company will deny your claim if you can’t. Because of the speculative nature of trucking, proving loss of business income is no easy task. Remember that you must back up your calculations with the necessary documents, such as tax returns, accountant statements, settlement sheets, profit and loss reports, etc. The bottom line is that you can be successful at collecting payment for your downtime after a loss. It likely won’t be easy, so you’ll need perseverance. Be realistic with your settlement expectations, and be prepared to provide proof of loss documentation. It certainly wouldn’t hurt to sharpen your negotiating skills as well. You can reach an OOIDA truck insurance agent Monday through Friday, from 7:30 a.m. to 5:30 p.m. CST, at 800-715- 9369. Do you have an insurance topic you would like to know more about? If so, email us at [email protected]. We will be covering a new topic each month and will do our best to address everyone’s questions.

Does full coverage really cover you fully?

By OOIDA -

By Deborah Graves, OOIDA Truck Insurance Department OOIDA truck insurance agents get calls every day from drivers who are asking for full coverage. Once the agent asks a few questions, it turns out these callers just want what is legally and contractually required. For many, “full coverage” includes Physical Damage coverage. However, most folks don’t realize that a variety of optional coverages are available, and a combination may be needed to ensure a driver is fully covered. For example, if your truck develops a mechanical problem and you end up stranded on the side of the road, there’s a coverage for that. It’s called Roadside Breakdown coverage. You could be reimbursed for the tow to the nearest qualified repair facility and/or for the labor costs of roadside assistance, up to the policy limit (parts not included). If you find you can’t operate your vehicle because of a covered loss under your Physical Damage policy, Rental Reimbursement coverage will provide reimbursement for a rental vehicle. Check with an agent about maximum coverage limits. If you haul for a shipper or motor carrier that requires you to be responsible for damage to their trailer while you are pulling it, you can add Trailer Interchange coverage. If you have an accident that results in a total loss and you find yourself upside-down on a vehicle loan, you can put your mind at ease by opting for Gap Insurance. This coverage provides protection for the difference between a loan payoff and the market value in the event of a total loss by collision, and it’s available for both tractors and trailers. If you have a brand-new tractor and are the first owner, you might want to consider Limited Depreciation. During your first few years of ownership, your truck’s value will depreciate considerably. Limited depreciation will virtually eliminate the depreciation in the event of a covered loss. If you want your personal items protected, you should ask your agent about Personal Property coverage. You already know that being down because of an accident can cause you some financial hardship. Optional Downtime coverage provides additional protection for those times when your truck is down for repairs following a covered physical damage claim. Supplemental Towing & Clean-up coverage can help with the cost of removal of debris and cleanup of the immediate vicinity of an accident following a covered loss as well as providing coverage to tow away your truck and/or trailer. Be sure to reach out to your agent to discuss your options. You can reach an OOIDA truck insurance agent Monday through Friday, from 7:30 a.m. to 5:30 p.m. CST, at 800-715- 9369. Do you have an insurance topic you would like to know more about? If so, email us at [email protected]. We will be covering a new topic each month and will do our best to address everyone’s questions.

The cons of choosing insurance on cost alone

By OOIDA -

By Deborah Graves, OOIDA Truck Insurance Department It is easy to focus on the price of your insurance and let that guide your decision-making process when purchasing coverage. However, doing this could actually wind up costing you more in the long run. The most common question is: How much is my truck insurance going to cost? Let’s talk about the “how much” part of buying truck insurance. This is pretty important, especially in today’s economy. However, should you buy for price alone? You already know the answer. It is very rare to get “something for nothing,” so be suspicious when you’re given a price that seems far below the other quotes you’ve received. When purchasing insurance for your business, the idea is to get the most value for the premium you pay. You’ll need to consider the coverage you are getting for the price you are paying. Policy wording can be difficult to understand. Make sure your agent can answer all your questions. Also, make sure you are comparing “apples to apples” when purchasing your truck insurance. In order to get the best rates, be honest with your agent about your operation and your records, including your work history and your motor vehicle record. If you operate your business in a professional manner and remain loss-free, you should receive better rates. It’s important to consider what services you can expect for the money that you pay. For example, if you purchase primary liability and motor truck cargo and are required to maintain insurance filings, you should expect your agency to provide this service. Providing proof of insurance (certificates) in a quick and timely manner is definitely an agency service you should require. You should also expect an explanation of how to file a claim if you are involved in an accident. It’s not smart to select insurance for low rates if the company can’t (or won’t) provide good, timely service. Those lower premiums won’t help you at all when you can’t get loaded because of problems with your insurance. You can reach an OOIDA truck insurance agent Monday through Friday, from 7:30 a.m. to 5:30 p.m. CST, at 800-715- 9369. Do you have an insurance topic you would like to know more about? If so, email us at [email protected]. We will be covering a new topic each month and will do our best to address everyone’s questions.

What type of insurance do you need?

By OOIDA -

By Deborah Graves, OOIDA Truck Insurance Department Question: What kind of insurance do I need? Answer: Let’s talk about the “what” part of buying truck insurance. There are many coverages available, and sometimes that can be confusing. One benefit of choosing a great agent is being able to trust that he or she will help you decide on the coverages you need to protect yourself and your business. The basic insurance you need will depend upon the type of operation you have. For example, if you are running under your own authority, you will need primary liability and motor truck cargo insurance. Your brokers and shippers may have other contractual requirements, but these two coverages are the most important. Primary liability is insurance against loss from legal liability of the insured for bodily injury or property damage to another party. The Federal Motor Carrier Safety Administration (FMCSA) requires $750,000; however, most shippers and brokers require $1 million, so you’ll want to keep that in mind. Motor truck cargo is insurance against loss from legal liability for damage to goods or merchandise in the insured’s care and custody in the ordinary course of transit. It includes coverage for debris removal, earned freight and refrigeration breakdown. If you are leased to a motor carrier, you’ll need to consult your contract. The lease should specify any requirements for secondary liability such as bobtail, non-trucking liability, or unladen liability. The lease should also list any additional coverages the motor carrier requires. Be aware that you will always have the option to secure these coverages from the insurance provider of your choice. You do not have to buy them from your motor carrier. You can reach an OOIDA truck insurance agent Monday through Friday, from 7:30 a.m. to 5:30 p.m. CST, at 800-715- 9369. Do you have an insurance topic you would like to know more about? If so, email us at [email protected]. We will be covering a new topic each month and will do our best to address everyone’s questions.

Breakdown coverage can help mitigate a bad situation

By OOIDA -

Written by Deborah Graves of the OOIDA Insurance Department For professional drivers, there aren’t many things that are more frustrating than breaking down and being stuck on the side of the road. The down time alone is bad enough. But the cost of repairs — especially with freight rates and fuel prices the way they are right now — just adds insult to injury. Fortunately, there is insurance to help offset the unexpected costs. The Owner-Operator Independent Drivers Association (OOIDA) has a coverage option, called Roadside Breakdown, that will help when you have a mechanical breakdown on your truck that is not related to an accident. A breakdown on the road can cause more issues than just a repair bill; you could also find yourself with late deliveries or pickups. Having insurance to help cover the cost of the breakdown can ease a little of the burden. If the breakdown is minor enough that it can be fixed on site, Roadside Breakdown coverage can reimburse you for things such as labor charged for the repairs needed to get back on your way. If your breakdown turns out to be more serious and you need to be towed, you could get some sort of reimbursement for a tow bill. Additional coverage options like Roadside Breakdown insurance can be a real lifesaver when owner-operators are faced with high repair costs, down time, etc. It’s important to talk through all your options when you’re shopping for truck insurance. Our insurance agents are here to make sure you understand how all your coverages work. You can reach an OOIDA truck insurance agent Monday through Friday, from 7:30 a.m. to 5:30 p.m. CST, at 800-715- 9369. Do you have an insurance topic you would like to know more about? If so, email us at [email protected]. We will be covering a new topic each month and will do our best to address everyone’s questions.

What you should know about towing and clean-up coverage

By OOIDA -

By Deborah Graves, OOIDA Truck Insurance Department Question: What is towing and clean-up coverage? Do I have it, and if so, do I have enough? Answer: Towing and clean-up coverage is what you will need in the case of an accident, to clean-up debris from your equipment and cargo, as well as towing your equipment and/or off-loading your cargo. You should also have coverage for storage costs after the wreck. Now the big question is: Do you have enough coverage? Let’s talk a bit more about that. Being out on the road, I’m sure you have heard some of the horror stories about the cost to clean up a crash scene. On average we see towing bills that run around $30,000. Some can be lower — but some can be much higher, depending on many factors. We have seen bills as high as $100,000 and more. You need to make sure you protect yourself as much as you can for those instances. Most physical damage insurance policies will include some coverage for towing, clean-up and storage; however, it is not always enough. Did you know that if you chose not to carry physical damage on your equipment you won’t have any coverage to clean up, tow or store the units? Next, we must address the freight you are hauling. Whether you carry your own cargo coverage or you are leased and your motor carrier has this coverage, a cargo policy will also have some towing, clean-up and storage coverage included. OOIDA has the built-in coverage, and we offer a wide range of supplemental coverage you can add on for a very reasonable price. We are here to help you succeed. So don’t find yourself upside down on a loan. Call one of OOIDA’s expert insurance agents today to discuss your coverage. You can reach an OOIDA truck insurance agent Monday through Friday, from 7:30 a.m. to 5:30 p.m. CST, at 800-715- 9369. Do you have an insurance topic you would like to know more about? If so, email us at [email protected]. We will be covering a new topic each month and will do our best to address everyone’s questions.

Do you need ‘gap’ insurance?

By OOIDA -

Written by Deborah Graves, OOIDA Truck Insurance Department You asked, and the agents at the Owner-Operator Independent Drivers Association (OOIDA), the leading experts in commercial truck insurance, are here to provide the answers. Question: What is “gap” insurance and do I need it? Answer: Let’s take a look at your equipment in order to provide the answer. Most physical damage insurance policies will pay you the actual cash value of your equipment. Or, in other words, your policy will only pay what it will cost to replace the equipment on the day you experience the loss. The truck market has been very high in recent years, forcing truck prices higher. If you purchased your equipment when prices were higher, you may find yourself owing more on your loan than the current market value of your truck. We are starting to see a turn in the truck market, and it can move on a daily basis. If you bought your truck within the past few years, you need to talk with your agent about gap insurance. OOIDA can provide a gap insurance policy that you purchase along with your physical damage coverage. If you have a total loss on your equipment because of a collision, the gap coverage will pay off the loan if you find yourself owing more than what your equipment is determined to be worth. Not only will it pay the difference in value, but it will also pay your physical damage deductible up to $1,000. This ends up a win-win for you. We are here to help you succeed. So don’t find yourself upside down on a loan. Call one of OOIDA’s expert insurance agents today to discuss your coverage. You can reach an OOIDA truck insurance agent Monday through Friday, from 7:30 a.m. to 5:30 p.m. CST, at 800-715- 9369. Do you have an insurance topic you would like to know more about? If so, email us at [email protected]. We will be covering a new topic each month and will do our best to address everyone’s questions.