WE ARE LEADERS IN COMMERCIAL TRUCK INSURANCE SOLUTIONS
Non-Trucking Liability Insurance
Below we cover everything you need to know about non-trucking liability insurance - including coverage, costs, and the best companies offering NTL insurance.
While motor carriers are required by law to carry primary liability insurance for any trucks that drive under their authority, owner operators who lease onto motor carriers are usually required in the lease agreement to carry non-trucking liability insurance to cover scenarios where they are not driving for the motor carrier.
Below we cover everything you need to know about non-trucking liability insurance - including coverage, costs, and the best companies offering NTL insurance.
For those just looking for a list of top companies, here are our favorites.
By clicking “Get Quote” or calling you will go to one of our insurance partners. The providers above may not be one of the providers in their network at this time.
What is non-trucking liability insurance?
Non-trucking liability insurance (NTL Insurance) is a type of insurance that covers owner operators from liability claims when a truck is being used for personal reasons.
Most motor carriers will require NTL insurance in their lease agreement so that owner operators don’t make claims against the carrier’s insurance policy while not driving for the motor carrier.
Non-Trucking Liability vs Bobtail Insurance
It’s common to see the terms non-trucking liability insurance and bobtail insurance used interchangeably - these insurance types are usually required by motor carriers to ensure that owner operators are covered by insurance when they’re not driving for the motor carrier.
But there are key differences between bobtail and non-trucking liability insurance.
Here are the most important differences you need to know:
Bobtailing
- Bobtailing is a term used to describe when a truck is driven without a trailer attached
- Bobtail insurance only covers trucks when they don’t have a trailer attached, it never covers trucks hauling a trailer
- Bobtail insurance covers trucks regardless of whether they’re being used for business or personal reasons
- It also doesn’t cover physical damage to the truck or medical expenses related to the driver or any passengers
Non-trucking liability insurance
- Non-trucking liability insurance covers owner operators from liability claims when the truck is not being used for business purposes
- It covers trucks whether or not they have a trailer attached
- It doesn’t cover physical damage to the truck, trailer or cargo, or medical expenses related to the driver or passengers.
Who needs non-trucking liability insurance?
Owner operators that are leased onto a motor carrier will likely need non-trucking liability insurance. While not a legal requirement, most lease agreements will include it in the contract.
Motor carriers are required by law to provide primary liability coverage to their owner operators but carriers don’t want owner operators making claims against their insurance while not under dispatch. To prevent this, most carriers require their owner operators to carry non-trucking liability insurance.
Trucks that might need non-trucking liability insurance include:
- Tractor trailers
- Pickup trucks
- Box trucks
- Tow trucks
- Cargo vans
What does non-trucking liability insurance cover?
Non-trucking liability insurance covers any expenses from damage or injury to a third-party when the vehicle is not under dispatch.
This can include damages to other vehicles and injuries to other drivers or pedestrians.
How much does non-trucking liability insurance cost?
Non-trucking liability insurance typically costs between $300 to $800 a year.
Compared to primary liability insurance, non-trucking liability insurance is less expensive because it only kicks in when the truck is being used for non-business purposes.
The cost of your policy is calculated using a range of different factors, including:
- Your lease agreement
- Vehicle type and model
- Driving record
- Age
- Number of years with a commercial driver's license (CDL)
- The frequency of driving for non-business purposes
- Credit score
- Limit requests
- Primary location
You can also get bobtail insurance or non-trucking liability insurance and physical damage insurance in a combined bundle. NITIC estimates that an owner operator with a $40k truck would pay around $4k a year in premiums for both coverages.
Best Non-Trucking Liability & Physical Damage Insurance Companies
Choosing the right insurance coverage is an important decision with a lot of variables to consider so it is a good idea to get several quotes and carefully compare coverage and pricing before making a decision.
By clicking “Get Quote” or calling you will go to one of our insurance partners. The providers above may not be one of the providers in their network at this time.
FAQs
What does NTL mean in insurance?
NTL stands for non-trucking liability insurance - it is a type of insurance that covers owner operators who are leased onto a motor carrier from liability claims when their vehicle is being used for personal rather than commercial purposes.
What kind of insurance do owner operators need?
It’s advisable for owner operators to have the following types of insurance:
- General liability insurance
- Physical damage coverage
- Trailer interchange
- Occupational Accident Insurance
As requirements can vary, owner operators should discuss their insurance needs with their motor carrier and insurance company to find out what insurance they’re obligated to have.
What type of insurance is required by the FMCSA?
The FMCSA requires that motor carriers have at least $750,000 in primary liability insurance - but they may need to be covered up to $5M depending on the commodities they are hauling.
Carriers moving vehicles under 10,001 lbs only need $300,000, while household goods motor carriers need $5,000 per vehicle and $10,000 per occurrence.
Is non-trucking liability the same as unladen insurance?
Unladen insurance provides coverage for a truck when it is not loaded, whether it is being used with an empty trailer - known as deadheading - or being used without a trailer - aka bobtailing. Unladen insurance protects you regardless of whether you’re using the truck for business or personal activities.
Non-trucking liability insurance only applies when a truck is being used for non-business purposes, whether or not they have a trailer attached. Non-trucking liability insurance is usually required for owner operators who are leased to a motor carrier.
Owner operators should discuss their needs with their motor carrier and insurance company to find out exactly what types of insurance they need.
Is non-trucking liability the same as deadhead insurance?
Deadhead insurance is insurance that protects you when a trailer is attached to the truck but it is empty.
Non-trucking liability insurance is coverage that’s used when a truck is being driven for non-business purposes, whether or not a full trailer is attached.
They are two different types of insurance that cover two different scenarios - owner operators should discuss their needs with their motor carrier and insurance company to find out what insurance they need to have.
Does Geico offer bobtail or non-trucking liability insurance?
Geico doesn’t offer bobtail or non-trucking liability insurance. Find out more about the types of insurance Geico offers on their website.
