Posted on: 1 November 2022
Owner-operators might need to take out insurance coverage to protect their incomes if their trucks get damaged and need to be repaired. If you need your truck to run your business, then you can't afford to be without it.
Rental reimbursement and downtime coverage helps you get through this kind of situation. Here, your insurance company helps you cover various costs. So, for example, they might contribute to the costs of renting a truck while your vehicle is being repaired. Or, they might help you make your truck payments.
This coverage is useful; however, you do need to find the right policy for your needs. What do you think about when you start comparing coverage?
1. Do You Need to Buy Separate Coverage?
Some truck insurance policies include rental reimbursement and downtime coverage in their core policies. This option usually comes under a policy's physical damage section.
However, some insurance companies sell this coverage as an add-on option. You won't get it automatically but will have to apply for it. Your core policy costs will increase when it is added to your coverage.
2. What Is the Daily Reimbursement Limit?
Insurance companies set daily payment limits for this coverage. So, for example, a policy will pay you a set amount of money for each day you claim.
Think about how much money you would need to keep your business running when your truck is out of operation. For example, think out how much it would cost you to rent a replacement truck.
Ideally, your reimbursement and downtime coverage will give you enough money to cover all your costs. If it doesn't, then you will have some out-of-pocket costs to make up for any shortfall. If this is a problem, then look at different insurance companies until you find one with the best limits for your financial needs.
3. How Long Does the Coverage Last?
Insurers don't give reimbursement and downtime benefits indefinitely. Your coverage will last for a set number of days. So, for example, an insurer might pay you your daily limit for a maximum of 30 days. After this period, you won't get any more payments.
Make sure to check policy conditions to see how many days you'll get. You don't necessarily need that many days' coverage in many cases. Ideally, you want coverage to last until you get your truck back.
To find out more about your options, talk to truck insurance agents.Share