To excel as a skilled driver, you need to handle deliveries efficiently, which often calls for the use of a standard vehicle that requires minimal loading time. However, there are instances when using an oversized vehicle for your work is unnecessary. It’s possible that you may not realize that your commercial driving job doesn’t always demand a CDL, but it becomes evident that each haul has its own set of specific requirements.
If you are still planning to provide deliveries via pickup trucks or other standard vehicles for hotshot services, it is necessary to talk about insurance policies with one of the providers who do not follow CDL regulations. However, you don’t need costly CDL insurance because driving hotshot services without a CDL license does not require CDL insurance coverage. Additionally, there is an added benefit of better fuel economy.
Where the top truck drivers go to discover employment across the country!
5 Best Non-CDL Hotshot Insurance Options
Looking for the best hotshot trucking companies that provide coverage alongside other trucking policies helps you avoid liability for all aspects of business transportation at an affordable price. Here’s a guide.
Progressive Insurance.
Progressive Insurance. is well known for its auto insurance policies. While you might not automatically think of the company for commercial insurance purposes, Progressive’s expertise extends beyond personal policies. Progressive provides all the trucking insurance you could possibly need to protect your business.
Coverage Options:.
Special Features:.
Hummel Insurance.
Hummel Insurance. is well-known for its expertise in the trucking industry. Whether you’re seeking bobtail insurance or non-CDL hotshot coverage, you’ll find what you need when working with this insurance agency. The company is based in Ohio, but it offers services to 48 states.
Coverage Options:.Hummel Insurance. offers a team of independent agents who will work with you to pull quotes from many large trucking insurance companies and help you find the best rates. You’ll discuss your coverage needs with an agent and they’ll introduce you to companies that can offer services that will meet your needs at a rate that will work for your business according to your company’s size.
Special Features:.
Services provided by Colonial Insurance.
Services provided by Colonial Insurance. focuses on the trucking industry and has unique insights and experience working with these companies. Whether you’re managing a fleet or you’re an owner-operator managing your solo business, you’ll find the coverage options you need to protect yourself from liability even when providing expedited deliveries.
Coverage Options:.
Special Features:.
Lancer Insurance.
Founded in 1985, the Lancer Insurance. Company is a divison of Core Specialty. With nearly 40 years in business, and the financial strength to handle any type of claim, Lancer Insurance. started as the bus guys, and grew to a multi-function commercial products company. With over 400 employees, and locations setup across the country, Lancer is liscensed to cover all 50 states, and also include coverage for Washington D.C., and Puerto Rico. With it’s commercial excess liability coverage options, hotshots are fully insured nationwide
Coverage Options:.
Special Features:.
Rev Insurance.
Rev Insurance. is a division of Valaris Insurance Group focused on the trucking industry. Rev knows the unique challenges that the transportation industry faces and helps limit those challenges with outstanding insurance coverage. Regardless of the various types of transportation services you provide, Rev has insurance solutions to protect those activities.
Coverage Options:.
Special Features:.
Non-CDL Hotshot Insurance vs CDL Hotshot Insurance
Although some people still do, skilled drivers are not obligated to possess a CDL since regular automobiles only require a valid license for operation. Non-CDL hotshot insurance is specifically tailored for businesses that utilize compact trucks and other conventional vehicles to fulfill urgent and final-mile deliveries.
Some companies offer deliveries for hotshot CDL drivers in the OTR 8 Class, which means you will need different insurance given the different risk class under the larger truck places you.
Insurance companies make a distinction between non-CDL driving and hotshot CDL driving because they view the business as risky and consider how much of a difference it is likely to make in transporting goods.
Non-CDL Hotshot Trucking and Insurance Considerations
Before deciding on which insurance companies to get quotes from, you should consider the factors you need to know as a hotshot in need of insurance.
Price
The insurance companies will calculate your expense depending on the coverage choices you make, the vehicles you intend to use for transporting the merchandise, the distance you plan to travel, and other factors. The price of hotshot insurance without a commercial driver’s license (CDL) fluctuates.
To guarantee that you secure the appropriate service and price for your business, it is crucial to exercise due diligence before choosing a policy and always obtain multiple quotes. Policies typically range from $7,000 to $12,000 per year, with an average of $10,000.
Distance
The more affordable your premium is, the shorter the distance your deliveries need to cover. From the perspective of the insurance provider, a higher likelihood of accidents equates to spending more time driving.
DOT Requirements and Regulations
If you’re transporting more substantial freight, you may be categorized as requiring a Commercial Driver’s License (CDL) even if you’re driving a smaller truck instead of a tractor-trailer. It doesn’t provide ample cargo space when you take into account the typical weight of a truck and trailer, but it may appear as though it has a significant weight capacity. According to DOT regulations, your vehicle and cargo must weigh 26,000 pounds or less to be considered a non-CDL enterprise.
State Lines
If you decide to operate or drive your vehicles and conduct your business within every state, you will need to register your business and obtain insurance rates that are less expensive, making it easier for you to manage your business across state lines.
Competition
Getting established and gaining the trust of shippers with their cargo might be more challenging than anticipated. It is essential to thoroughly understand and familiarize yourself with the competitive landscape of the area you wish to invest your time and money in before offering hotshot services. The trucking industry, specifically non-CDL hotshot trucking, is significantly more competitive than CDL trucking due to fewer regulations and lower entry barriers.
Pros of Non-CDL Hotshot Trucking
Cons of Non-CDL Hotshot Trucking
Protect Your Non-CDL Trucking Business
Standard commercial auto policies do not provide sufficient coverage. Trucking companies that transport goods for customers still require special coverage to protect themselves from significant financial consequences in the event of cargo damage. This is applicable even if you are not operating a tractor-trailer.
You will likely need to provide a certificate of insurance to earn business with shippers near you for non-CDL hotshot insurance policies.
FAQ
What Insurance Is Required for Hot Shot Trucking Coverage?
To start your hot shot trucking business, you’ll need liability coverage for physical injuries and property damage as well as cargo insurance.
Can Experienced Drivers Rest in Their Trucks?
According to FMCSA regulations, it is not permissible to rest inside the truck unless you install a DOT-approved sleeping space. Hence, conventional four-door trucks lack a designated area that meets the criteria for sleeping.
Is it possible for a team of hotshot drivers to drive together?
Throughout the duration that they are inside the vehicle, both individuals within the automobile will be regarded as working. Alternatively, to engage in tandem driving for expedited deliveries, it would be necessary to possess a truck equipped with a legally-approved sleeping compartment as regulated by the Department of Transportation (DOT).
Sign up for a Freight.Waves e-newsletter to stay informed of all news and trends impacting supply chain careers and operations.