Who needs Bobtail Insurance?
If you own your own truck and operate under a lease agreement with a trucking company, chances are you need bobtail liability insurance. Bobtail Insurance covers you when you are operating without a trailer. This is known as bobtailing. Sometimes it’s called deadheading and deadhead insurance. When leased to a Motor Carrier, their liability insurance often doesn’t cover you when your truck doesn’t have a trailer attached —that’s a huge gap in coverage. Without bobtail insurance, you are uninsured anytime your tractor isn’t under commission and hauling something, like when you’re driving home from work or when you’re driving from one terminal to another between shipments.
Most policies will offer $1,000,000 in liability coverage and should be around $30-$50 per month. When you add physical damage for your truck and trailer you might be around $1,500-$2,500 per year for PD and Bobtail. It all depends on the value of your equipment. With that said, the same policy and coverage might cost $1,500 with one company, and $2,500 from another. So it really pays to shop around.
5 Questions to ask Bobtail Insurance Companies
- Does the policy meet all the requirements of my lease agreement?
- What are the liability limits of the policy? $1,000,000?
- Do I need Bobtail or Non trucking liability insurance?
- When does my Motor Carrier’s liability insurance end and my Bobtail insurance begin?
- Is their a paid in full discount?
Bobtail and Physical Damage?
As an owner operator with a lease agreement, you are probably looking for more than just Bobtail. You probably are looking for Physical Damage too. The question then becomes: Do you piece out your coverage or get them all from one trucking insurance company?