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Understanding the 4 types of commercial vehicle insurance coverage

What you need to know about commercial vehicle accidents? Commercial vehicle accidents can be a result of distracted driving, mechanical issues and the inability to identify blind spots. A blind spot is a dangerous zone surrounding the truck where vehicles are out of sight from both side-view and rearview mirrors, putting drivers at risk. While there are a number of strategies for risk management, claiming a commercial vehicle insurance policy helps to counter the financial loss.  The number of commercial vehicle accidents is quite frequent. For instance, The National Highway Traffic Safety Administration (NHTSA) reported that 8,40,000 accidents involving large commercial vehicles occur annually due to drivers not being aware of their blind spots while 300 people lose their lives in such collisions. How does insurance benefit the Logistics industry? There are a number of benefits of commercial vehicle insurance policy in the logistics industry. It  helps to protect drivers, vehicles and cargo in terms of loss or damage by meeting medical and other financial requirements. 4 types of commercial vehicle insurance coverage: There are multiple types of commercial vehicle insurance coverage including commercial liability, physical damage, motor truck cargo and non-trucking liability. Factors that influence the premium of commercial vehicle insurance: The cost of commercial vehicle insurance is determined by many factors, such as the age and condition of the automobile, its model and make, vehicle class, type of fuel it uses, insured declared value (IDV) and  location in which it is registered. You can buy commercial vehicle insurance online by choosing the best trucking insurance companies like Axlerate which provides commercial truck insurance, freight insurance coverage and health insurance for truck drivers. Let’s Wrap Up! Commercial vehicle accidents are increasing due to distracted driving, mechanical issues and trouble with identifying blind spots. However, having a commercial vehicle insurance policy will help to provide coverage for drivers, vehicles and cargo. You can buy commercial vehicle insurance online from the best trucking insurance companies in terms of commercial liability, physical damage, motor truck cargo and non-trucking liability. 

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What you need to know about commercial truck cargo insurance?

Why is cargo insurance for trucks necessary in logistics? The logistics industry involves shipment delivery that has to meet certain requirements like safe handling of goods and timely delivery. While goods are in transit there is a chance of goods being damaged, stolen or lost due to various factors. Therefore, the need for commercial truck cargo insurance is crucial to prevent major financial loss in terms of cargo damage or theft. The financial loss in terms of cargo damage and theft is huge. For instance, fleet vehicle collision cost sums up to $70,000 per year on average (Source: G2TechMarketplace). Moreover, CargoNet, a cargo theft reporting firm revealed that $223 million worth cargo was stolen in 2022. Cargo insurance for trucks can help to efficiently mitigate such risks.  4 common causes of commercial vehicle accidents There are a number of causes for commercial vehicle accidents including improper cargo loading, poor vehicle maintenance, unrealistic delivery timelines and unpredictable circumstances. In comparison to the loss that these issues can demand, the trucking cargo insurance cost is the bare minimum and helps to handle such costly expenses.  What type of coverage does Truck load insurance provide? There are different kinds of cargo that need to be delivered, some might be perishable or fragile items or even chemical components at a higher risk of explosion. In all these cases, protecting such goods in transit is necessary. However, you can mitigate the risk of unexpected financial losses for your goods and merchandise with a truck load insurance. Most cargo insurance providers ensure different types of freight insurance coverage including collision and non-collision coverage. How to choose and claim commercial truck cargo insurance? Cargo insurance providers have different metrics and requirements based on which a policy is framed. However, the best commercial truck cargo insurance will provide a simple process, maximum coverage, reliable claim settlements and expert support.  The process to raise a claim for insured cargo also differs with every provider, however the common way to file a claim includes reporting the accident or theft to the cargo insurance provider, recording the damages to understand the freight insurance coverage, sending a surveyor to inspect the losses, submitting the required documents and claiming insurance. Let’s Wrap Up! In the logistics industry there is always a possibility of goods being lost or damaged in transit as a result of improper cargo loading, poor vehicle maintenance, unrealistic delivery timelines and unpredictable circumstances. The most effective way to prevent financial strain for cargo damage is to claim commercial truck cargo insurance that provides collision and non-collision freight insurance coverage. The best cargo insurance providers will ensure a simple process, maximum coverage, reliable claim settlements and expert support. Truck load insurance can be claimed in case of a crisis by reporting the claim, recording the damages, inspecting the loss and submitting the required documents. Axlerate provides a unified digital logistics management platform with transportation management solutions to simplify tolls, fuel purchases, fleet expenses, loans, insurance, escrow, payments, truck booking, fleet management and the buying and selling of logistics products and services. 

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The importance of trucking insurance coverage for logistics

Why do logistics companies need to care about risk management? Workplace accidents within the premises lead to loss of life, money and machinery. But major activities of logistics companies operate outside the premises and are even more vulnerable to casualties, theft and disasters compared to other workplace settings. Therefore, trucking insurance coverage in logistics is of prime importance to avoid heavy losses owing to unprecedented circumstances. According to research, 37.15% of logistics companies want to invest more in systems to automate risk identification and issue resolution (Statista, 2021). However, the predominant method of mitigating risks is to understand the importance of insurance for logistics and to adopt insurance policies to meet fleet expenses during a crisis.  What trucking insurance coverage do transport and logistics companies need? The prime reason leading to a crisis in logistics operations is the lack of visibility. According to research, 69% of companies do not have total visibility over their supply chains (Source: FinancesOnline). However, though visibility can be increased by installing and adopting tech solutions, a major portion of risk can only be mitigated using freight insurance coverage. Logistics companies usually need freight insurance coverage in terms of cargo damage, cargo theft or hijacking, transportation delays and even loss of sensitive data. What are the challenges of processing logistics insurance manually? Manual processing of commercial truck insurance by trucking insurance companies has its own challenges in terms of time, enormous amounts of paperwork, errors and even lack of insights on risk prediction to craft a holistic or personalised freight insurance coverage for specific industries or operations. Logistics is a complicated industry in terms of risk owing to the fact that most operations occur outside the premises. Therefore, with manual processing, logistics owners may not be able to claim benefits on time or even get enough coverage for all the risks involved in the industry. Why is utilizing fintech in trucking insurance coverage essential for logistics? In simple terms, digitization or automation saves time, money. Fintech solutions provide insights to trucking insurance companies, banks or third-party lenders on creating firm-specific commercial truck insurance, freight cargo insurance or health insurance for truck drivers by predictive analysis of risk using big data. Moreover, fintech leverages the potential of artificial intelligence, machine learning and blockchain technology to provide, record and analyse asset data in real-time and store it in a secure database that cannot be tampered. This sort of visibility and security with automated fraud detection prevents asset theft or fraudulent activities in data exchange which is of prime importance in claiming freight insurance coverage benefits. Let’s Wrap Up! Logistics industry is comparatively the most vulnerable to risks and therefore risk management in logistics is a matter of concern. The predominant means of mitigating risks is through trucking insurance coverage.  However, manual processing of commercial truck insurance, freight cargo insurance or health insurance for truck drivers lack maximum coverage for all fleet-related risks and is prone to errors, enormous amounts of paperwork and loss of time. Therefore, digitisation or automation of the process with fintech solutions help in crafting personalised, holistic and best insurance for logistics and speeds up the entire process! Axlerate is a unified platform for Logistics management, payments and services. Our solutions help to simplify tolls, fuel purchases, fleet expenses, loans, insurance, escrow, payments, truck booking, fleet management and the buying and selling of logistics products and services.

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