Business owners who supply employees with vehicles need insurance to cover those vehicles and their drivers in accidents. Commercial vehicle insurance, also known as commercial vehicle coverage, pays for property damage and medical expenses that arise when an employee is involved in a car crash while driving a company vehicle.
Unfortunately, not all business owners take the responsibility of properly insuring their drivers and vehicles. Commercial vehicles may be underinsured, leaving survivors of accidents scrambling to pay for their injuries and damages. If you’ve been involved in an accident with a commercial vehicle in Colorado, you should know your rights so you can get the compensation you deserve.
Colorado Truck Insurance Guide
- What Are the Minimum Levels of Truck Insurance Required by Federal Law?
- Does Colorado Have Different Rules About Semi-Truck Insurance?
- What Types of Insurance Should Commercial Truck Drivers Have?
- Are Insurance Requirements Different for Smaller Commercial Vehicles?
- Can You Add Commercial Insurance to a Personal Vehicle?
- How Do You Report an Underinsured Commercial Vehicle?
- Do You Have a Colorado Truck Accident Lawyer Near Me?
What Are the Minimum Levels of Truck Insurance Required by Federal Law?
Federal law requires commercial vehicles to carry minimum levels of insurance. As defined by law, commercial vehicles are motor carriers. Motor carriers may include trucks, vans, shuttles, or cars that are for-hire or private, and include but are not limited to “a motor carrier’s agent, officer, or representative; an employee responsible for hiring, supervising, training, assigning, or dispatching a driver; or an employee concerned with the installation, inspection, and maintenance of motor vehicle equipment and/or accessories.”
No motor carrier may operate legally without carrying the minimum financial requirements as set forth in 49 CFR § 387.9:
| Type of carriage | Commodity transported | January 1, 1985 |
|---|---|---|
| (1) For-hire (In interstate or foreign commerce, with a gross vehicle weight rating of 10,001 or more pounds) | Property (nonhazardous) | $750,000 |
| (2) For-hire and Private (In interstate, foreign, or intrastate commerce, with a gross vehicle weight rating of 10,001 or more pounds) | Hazardous substances, as defined in 49 CFR 171.8, transported in bulk in cargo tanks, portable tanks, or hopper-type vehicles with capacities in bulk; in bulk Division 1.1, 1.2 or 1.3 materials; in bulk Division 2.3, Hazard Zone A material; in bulk Division 6.1, Packing Group I, Hazard Zone A material; in bulk Division 2.1 or 2.2 material; or highway route controlled quantities of a Class 7 material, as defined in 49 CFR 173.403 | 5,000,000 |
| (3) For-hire and Private (In interstate or foreign commerce, in any quantity; or in intrastate commerce, in bulk only; with a gross vehicle weight rating of 10,001 or more pounds) | Oil listed in 49 CFR 172.101; hazardous waste, hazardous materials, or hazardous substances defined in 49 CFR 171.8 and listed in 49 CFR 172.101, but not mentioned in entry (2) or (4) of this table | 1,000,000 |
| (4) For-hire and Private (In interstate or foreign commerce, with a gross vehicle weight rating of less than 10,001 pounds) | In bulk Division 1.1, 1.2, or 1.3 material; in bulk Division 2.3, Hazard Zone A material; in bulk Division 6.1, Packing Group I, Hazard Zone A material; or highway route controlled quantities of a Class 7 material as defined in 49 CFR 173.403 | 5,000,000 |
Proof of these policies must be maintained at the motor carrier’s principal place of business in the form of one of the following documents:
- MCS-90
- MCS-82; or
- Written authorization from FMCSA to self-insure under 49 CFR 387.309. If this option is chosen the motor carrier must also maintain a satisfactory safety rating as defined in 49 CFR 385.
This means that if you are involved in a motor vehicle accident with a commercial vehicle, the driver (or at least the company) should be able to provide you with their insurance carrier’s information so that you can file a claim for your damages and injuries.
Does Colorado Have Different Rules About Semi-Truck Insurance?
Some states require semi-trucks to carry different amounts of insurance, insisting on greater levels of coverage to ensure that folks are protected in the event of a crash. Colorado does not; the State adopted the federal rules for insurance minimums, which means that the above requirements are also the requirements for operating a commercial vehicle within Colorado.
What Types of Insurance Should Commercial Truck Drivers Have?
The policy limits in the CFR table are the minimum policy amounts required to operate a commercial vehicle; however, accidents involving large commercial vehicles can cause catastrophic damage. Minimums may not be enough to cover the associated losses. Additional coverage can help cover losses that may exceed minimum policy limits. Commonly purchased policies include:
- Comprehensive insurance. Comprehensive insurance coverage provides coverage for damages and losses that are not related to an accident, like theft, automobile fires, or vandalism.
- Collision insurance. Collision insurance protects a truck owner against damages to the truck and other vehicles in collision-type accidents that involve more than one vehicle.
- Cargo insurance. Trucks that carry loads of merchandise or goods should consider cargo insurance. This type of insurance protects from loss or damage to the goods that are being carried. It may also protect against accidents that occur due to mechanical refrigeration breakdown.
- Non-trucking coverage. A type of insurance unique to the trucking industry, non-trucking coverage protects drivers and trucks from accidents (both on the road and occupational) when the truck is not being used to haul freight.
- Uninsured/underinsured motorist coverage. Uninsured/underinsured motorist coverage helps protect owners/operators by covering damage to their trucks if someone without liability coverage were to hit them.
- Trailer interchange insurance. It is not uncommon for tractors to pull trailers that are owned by a different company. In this case, a type of insurance called trailer interchange is necessary to protect the tractor operator from damages to the trailer while the trailer is owned by another company.
There are numerous factors to consider when operating a commercial vehicle and possibilities for liability for which insurance coverage is a must.
Are Insurance Requirements Different for Smaller Commercial Vehicles?
Federal law mandates minimum insurance amounts for motor carriers over 10,001 pounds. Commercial vehicles that weigh less than this (think delivery vans, light-duty trucks, etc.) are still commercial vehicles and must still carry certain amounts of insurance, although the minimum will be lower.
In the state of Colorado, owner/operators of these vehicles must carry:
- $25,000 bodily injury liability per person in an accident
- $50,000 bodily injury liability per 2 or more people in an accident
- $15,000 property damage in any one accident
Non-commercial motorists are also subject to these limits, and commercial vehicle operators need to consider other forms of insurance, like the ones outlined above.
Insurance Exceptions and Exemptions for Agricultural Vehicles
Farm and agricultural vehicles are exempt from some of the insurance policy minimum requirements that are in place for other commercial vehicles. Covered agricultural and farm vehicles are not subject to the same insurance requirements provided they fall within the scope of the definition of farm vehicle and are being used in accordance with those requirements.
Can You Add Commercial Insurance to a Personal Vehicle?
If you have a company and would like to register your vehicle as a company car, you’ll want to protect yourself from personal liability if you were to get into an accident while in your company car. In this case, you’ll want to add a commercial insurance policy that covers both you and your vehicle in the event of an accident. Some insurers may be able to provide this type of coverage with an endorsement to your individual policy.
How Do You Report an Underinsured Commercial Vehicle?
If you are in a collision and discover that the commercial vehicle driver who hit you was either underinsured or uninsured, you can report the driver and the company to the Colorado Department of Regulatory Agencies.
In these cases, you’ll want to contact an experienced Colorado truck accident attorney to help you file your claim and pursue additional compensation from other parties or other carriers if available. A member of our team can help you determine the appropriate carrier to file with, and help you determine the true value of your claim to avoid accepting low-ball settlement offers.
Do You Have a Colorado Truck Accident Lawyer Near Me?
Frank Azar Car & Truck Accident Lawyers has offices serving Aurora, Colorado Springs, Denver, Fort Collins, Greeley, Grand Junction, Pueblo, and Thornton. Our team of injury lawyers is always nearby when you need us. The consultation is free.
Contact Frank Azar Car & Truck Accident Lawyers in Colorado Today
A commercial vehicle accident can result in massive damages and life-long injuries. If the owner or operator of the commercial vehicle is not properly insured, you need legal muscle to help you fight for your right to receive compensation. At Frank Azar Car & Truck Accident Lawyers, we dedicate our years of experience to helping you recover the compensation you need to move forward. Contact our firm today for a consultation.
