The Benefits of Unbundling Motor Truck Cargo Insurance
What is motor truck cargo insurance?
Motor truck cargo insurance protects cargo while it is being transported via trucks throughout the country. Independent truckers and shipping companies need motor truck cargo coverage in case of an accident, vandalism, a weather event, or any number of causes that could damage the materials they are transporting. In fact, of the $13 trillion worth of freight that is shipped each year in the United States, 70% of those goods are transported by truck. All of those goods are therefore susceptible to damage or loss, which can equate to a staggering dollar amount.
Often, cargo transported on trucks is worth tens of thousands of dollars, if not more. There is always a chance of loss and damage, so it’s critical that couriers, truckers, freight forwarders, and other groups and individuals tasked with transporting goods maintain comprehensive insurance protections to avoid liability.
More questions? Read Understanding Motor Truck Cargo Insurance
What is unbundled insurance?
Unbundled insurance refers to a group of insurance products which are purchased from more than one carrier or insurance company, whereas bundled insurance refers to multiple types of insurance purchased from a single insurer. People sometimes choose to bundle various policies, such as auto and home, in order to take advantage of discounts or other benefits offered by the carrier. However, unbundled insurance allows you to compare rates and shop around for the lowest premiums and best coverage options.
The Benefits of Unbundling Motor Truck Cargo Insurance
There are many reasons unbundled motor truck cargo insurance is a good option for freight transporters and truckers. When you choose to select individual insurance products based on things like cost and range of coverage, you can create a personalized plan that works for your specific needs. You have the ability to choose the most competitively priced, industry-leading vendors and tailor your plan so that you know exactly what you’re paying for and how much you’re paying.
Unbundling motor truck cargo insurance coverage enables you to base your choices on specific risk factors that you encounter in transporting goods, as well as geographic location, company size, demographics, and various other factors.
Competition
When you choose an unbundled approach to motor truck cargo insurance, you have the freedom to select the most competitive products available. You can compare rates and coverage in order to purchase the coverage that fits your needs. Often, when people choose packaged or bundled insurance, they are less likely to check out competitors’ rates, which may be significantly better or which may change over time. If you’re not doing the research into competing offers, you may not realize that there is a better, more comprehensive product available to you.
Additionally, it’s possible that the vendor that can offer you the best rate on one insurance product cannot offer you the best rate on another. In order to ensure you’re getting the best deals possible, you should shop around for policies:
- If your rate increases 10% or more at renewal
- Every other year
- If your credit score improves or goes down
- When you have a major life change, such as a move, marriage or divorce
Choosing individual insurance products instead of a package affords you the freedom to shop around and choose the best products for your needs and budget.
Reduced costs
Unbundling allows truckers to choose motor truck cargo insurance products based on cost, ultimately saving money while providing protection against liability for accidents, weather, vandalism, and many other unpredictable events. The risk is never worth it, especially when affordable coverage is available. Insurance bundles often include add-ons for things like jewelry, for example. You can end up paying for coverage that you don’t even actually need, but is included in the bundle. Ultimately, unbundling gives you the ability to choose all of the best, most cost-effective products, rather than having to settle for some that aren’t the best available.
Flexibility & Customizability
The ability to choose insurance products from different vendors allows you to protect every specific area you need covered. With unbundled motor truck cargo insurance, it’s easier to change vendors or switch to a new policy should you experience a major life change. Bundled insurance often involves contracts that keep you obligated for a certain period of time. During that time, your rates could increase, and you’ll be on the hook without the ability to switch to a more cost-effective product.
Many people also find it easier to pick and choose insurance products instead of committing to a bundle of coverage, some of which they might not even need. Those looking for motor truck cargo insurance probably want to focus on insurance that will protect them from liability in transportation. Depending on what you typically transport, you can tailor your coverage to protect you from liability against losses that affect certain types of cargo more frequently, thereby fully reaping the benefits of the coverage for which you’re paying.
Contact us
In trucking, you never want to get stuck without coverage. If you’re interested in unbundled motor truck cargo insurance, contact OspreyWatch, powered by Osprey Underwriters today. Our underwriters can help you choose the best, most cost-effective insurance products for your specific needs. Fill out our quick form a request a quote today.