Trucking Auto Liability Insurance

Auto Liability Trucking Insurance coverage provides protection against your legal liability for injury or property damage caused by your negligence, your employees or contract drivers in the use of your insured vehicles. If you own a trucking company or are a commercial independent driver engaged in the business of transporting goods you must have Auto Liability coverage.

This coverage consists of two main components: Bodily Injury Liability Coverage (BI) and Property Damage (PD) Liability Coverage. These coverages will react in the event of an at-fault loss.

  • Bodily Injury Liability Coverage (BI)
    If you, your employees or contract drivers are responsible for causing an accident, Bodily Injury Liability coverage pays for injuries/death to people involved in the accident. BI Coverage also pays for legal defense if you are sued.
  • Property Damage (PD) Liability Coverage
    If the insured person is legally liable for an accident, this coverage pays for damage to other people’s property resulting from the accident. If the Insured is sued, Property Damage Liability coverage also pays for legal defense costs.

Who Needs Auto Liability Insurance?

Anyone who drives a truck needs primary Auto Liability insurance. In most situations, primary auto liability insurance is required by law.

Auto Liability Insurance Limits

Auto liability insurance requires you to select limits. These limits determine the maximum amount your insurance company will pay if you need to use the insurance coverage. Limits are described either as split limits or as a combined single limit (CSL).

Split limits are three numbers that describe the following:

  • Maximum Bodily Injury payment per person
  • Maximum Bodily Injury payment for all people in the entire accident
  • Maximum total Property Damage payment for all property in the accident
    For example, if you choose split limits of $15,000/$30,000/$10,000:

    • $15,000 would be the most your insurance would pay each person injured in an accident
    • $30,000 would be the most your insurance would pay for all people injured in the accident
    • $10,000 would be the most your insurance would pay for all property damaged in a single accident.

With a combined single limit, or CSL, only one number is used to describe the limits for both bodily injury insurance and property damage insurance. In this case, there is no specific limit per person, just a grand total maximum that will be paid for all injuries and property damage that you cause that result from a single accident.

For example, if you selected a combined single limit of $1,000,000, your insurance company would pay up to $1,000,000 for all medical and injury-related bills and all property damage expenses that you caused in an accident.

Auto Liability Insurance Exceptions and Restrictions 

Your property damage (PD) insurance limits cannot exceed your bodily injury (BI) insurance per person limits if you choose a split limit.

State and Federal Minimums

  • Each state sets laws regarding how much primary Auto Liability insurance is required. This is known as your state’s minimum limits or minimum limit requirements.
  • The federal government also sets laws regarding how much primary auto liability insurance is required.

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