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Around the Industry

February 26, 2019


By Dawn Jaeger, PacLease Insurance Manager, Retired

Whether we like it or hate it, insurance coverage is a crucial component of operating a commercial fleet of trucks. Insurance regulations exist to protect you, your business, your assets, your customers, your drivers, and anyone else involved in any potential incident. PacLease knows that having proper insurance coverage is a measure of security for your fleet and a small part of the cost of keeping your business running.

Many people understand what this protection insurance provides. However the multiple federal and state laws in place regulating commercial vehicle insurance make things more complex. For example, if your trucks crosses state lines, the Federal Motor Carrier Safety Administration (FMCSA) regulates what you transport and may require your insurance provider to submit insurance filings as proof that your business complies with regulations. And even if your fleet doesn’t cross state lines, you’re still bound by state’s Department of Transportation (DOT) insurance requirements.


Although no one wants to think about collisions or bodily injury, insurance gives you peace of mind and covers you in many cases when the unthinkable occurs. Your PacLease salesperson can provide more detailed information about insurance requirements, but here is quick look at what insurance coverage is required when renting or leasing from a PacLease franchise:

At a bare minimum, Auto Liability and Physical Damage coverage is required. This protects you and names the PacLease franchise and PACCAR Leasing Company as Additional Insureds and Loss Payees. Auto Liability covers things like injury to others and/or their property when your driver is at fault, while Physical Damage covers actual damage to the PacLease vehicle.

Fleets must also supply evidence of Auto Liability coverage for each vehicle. And if you’re hauling a DOT defined hazardous material your coverage must be equal to the limit specified by the U.S. DOT (generally between $1,000,000 to $5,000,000 combined single limit CSL). The Physical Damage coverage for each vehicle must be in an amount adequate to protect the value of the vehicle. You wouldn’t want anything less!

The most important thing to remember is that all four entities – your Fleet, PACCAR Leasing Company, the PacLease Franchise and the PacLease Vehicle – must be insured for the proper coverages when renting or leasing from PacLease. This keeps you safe, protects your investments, and keeps your business moving forward.


Tags: Safety | Leasing | Rental | Fleet Management

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