The Federal Motor Carrier Safety Administration (FMCSA) released a report sharing data on crashes that took place 2019. It states that a total of 2,734 fatal crashes involved trucks and buses in 2019 in the United States Of America. As per their preliminary report released in January 2020, 3,087 people lost their lives in those crashes. In just California 277 people died, 3,939 people were hurt in crashes that involved a truck or a bus.

The above statistics should be enough reason for any owner who owns a single bus or a fleet of buses to purchase charter bus insurance. While shopping for insance, one must always pick a company or agent they trust and someone who understands the industry you are part of. With numerous changes in requirements, the agent you pick must be someone who will guide you to buy the best suited policy for your business.

In the event of an accident, the losses incurred by a charter bus owner could lead to insolvency of a business if the bus/buses are not insured. Much like auto insurance, charter bus insurance policy offers the types of coverages mentioned below;

Liability insurance

Being one of key insurance coverages you will purchase, liability insurance coverage covers you if your driver is at fault in a collision. It covers accident bills that could cause your business financial strain otherwise and is mostly mandatory by the law of USA. The coverage has two parts;

1. Bodily injury – In an accident, if your driver, whether hired or not is at fault and causes injury to another person/party involved, this coverage covers expenses related to medical care. will pay for their medical care namely emergency transport to the hospital, emergency medical services, extended hospital stays, the cost of rehabilitation and recuperation, and other medical expenses incurred due to the collision. It also covers funeral costs of the affected party if the injuries are fatal.
2. Property damage – If in a collision, your bus driver is at fault, the damage caused to the other party’s vehicle, property or objects is covered in this.

Worker’s Compensation Insurance

It is a legal requirement for charter bus companies to invest in workers compensation insurance for their employees as this will cover them incase the employee suffers injuries or sickness during the duration of the employment. This also makes employees feel protected and increases chances of them staying with your company.

Collision coverage

This coverage pays for damages caused to your charter bus in an accident whether you are at fault or not.

Comprehensive coverage

This coverage compensates you for losses incurred due to theft, vandalism, fire, damages from another object.

Uninsured/underinsured motorists

If in an accident the driver at fault is either uninsured or underinsured, this coverage pays for damages caused by them so that you don’t suffer financial losses.

Medical payments coverage

In a collision if any of the travellers/your passengers do not have health insurance, this coverage pays for medical expenses and covers costs related to that.

To further safeguard the financial interests of your charter bus business, you can purchase the following charter bus insurance coverages;

Insurance for Collision Deductible Waiver

Business Interruption Insurance

Property Damage or Bodily Injury Insurance

Towing Insurance

Rental Insurance

Umbrella Insurance

Specified Peril Insurance

Maintain a Good Credit Record
Your credit rating can be a factor in figuring the insurance premium costs. So, do your utmost to keep your credit rating high. Many insurance companies use this credit score information to set prices for various auto insurance policies. According to a study, people who effectively manage their credit scores have fewer claims in a year. To improve or maintain your credit standing, always pay your bills on time, don’t obtain more credit than you need and keep your credit balances as low as possible. You should check your credit record regularly. If there are any errors, you should correct them promptly so that your record is not impacted.
Reduce Coverage on Older Vehicles
As your vehicle gets old, the need for collision and comprehensive coverage begins to decline. As per a general rule of thumb, if your vehicle is not worth 8-10 times the premium rate, then full coverage may not be entirely cost-effective. You should consider eliminating your collision coverage if your vehicle is old. Check the value of your vehicle against the cost of your annual premiums and adjust your coverage accordingly each year.
Increase Your Deductibles
You can slash your vehicle insurance premium drastically by raising your deductible. The deductible is the amount that you pay out of pocket before insurance picks up the tab in the event of an accident, theft or other types of damage to the vehicle. Decide the amount that you can afford to spend out of pocket and then adjust your deductible accordingly. A simple rule is if you reduce the deductible, auto insurance premium costs increase. Check with your agent how much premium will be slashed if you raise your deductible. This can make your annual auto insurance premium better by several percentage points and put some money back in your pocket, or the savings may be minimal.
Shop Around for Better Premiums
If your policy is about to renew and the annual premium has gone up remarkably, consider shopping around and obtaining quotes from competing companies. Prices for auto insurance vary from one company to another company. You should at least secure three quotes from three different companies when you looking for the lowest rates. It makes sense to obtain quotes from other companies in every one or two years to check if there is a lower rate out there. However, cheap always does not mean good and going with a cheap insurance plan is always not the wisest decision. That’s why you should consider the auto insurance company’s creditworthiness too.