What Does Commercial Truck Insurance Cost?

Nearly 500,000 trucking accidents happen each year in the U.S. If you’re a truck driver or you employ truckers, you need the right insurance to keep everyone protected.

But where do you turn for commercial truck insurance? And how much does trucking insurance cost?

That’s what we’ll be looking at today. In this article, we’re outlining what local trucking insurance does as well as truck insurance rates to help you find the right coverage.

What Is Truck Insurance?

Truck insurance covers truckers for any injuries and damages sustained in an accident. It starts with primary liability, and different policies offer other coverages.

There are different types of trucking insurance, but experts will encourage investing in a general liability insurance plan. General liability provides protection from lawsuits, libel, and other legal attacks.

Most truck insurance policies cover the following:

  • Medical bills for bodily injuries sustained during or after an accident
  • Any property damaged by a truck and the cost of replacing or fixing that property
  • Cost of damages caused by a truck at delivery locations
  • Slander, libel, false advertising, and other legal claims

Trucking insurance doesn’t protect non-truck vehicles. It’s also not for the individual drivers, as they’re covered through worker’s compensation.

It won’t cover loss of income after an accident. Lost cargo or products won’t be included in your policies either.

Why You Need Commercial Truck Insurance

In many states, the Federal Motor Carrier Safety Administration requires businesses to properly insure their trucks. If not, you might not be able to ship cargo across state lines.

Commercial truck insurance also protects you from legal damages when an accident occurs. General liability insurance will lessen the damage when you’re charged with different lawsuits after an accident.

Having insurance also reduces downtime after a crash. Some accidents might not be severe, but not having the right coverage could drag out the administrative process.

It’ll also reduce your losses down the line. In short, trucking insurance gives businesses a presence of mind whenever their drivers are on the road.

What Are the Different Types of Truck Insurance?

Finding out the cost of your trucking insurance starts with figuring out which insurance type you need. Different types cover different damages. Here are the most common ones that you should consider:

  • General liability insurance covers property damage, medical bills, and lawsuits
  • Trucking liability insurance covers physical damage from accidents
  • Bobtail insurance covers damages when you’re using your truck without a load
  • Physical damage coverage covers damages caused by vandalism, theft, or natural disaster

Worker’s Compensation

If you own a trucking business, you’ll also have to consider worker’s compensation insurance. This is a state-mandated coverage that pays your employees’ medical costs.

Injuries covered by workers comp include:

  • Injuries suffered from an accident
  • Stress injuries from loading and unloading cargo
  • Illnesses related to driving trucks

The policies you choose depend on your status as an owner or operator. If you employ multiple drivers, you’ll have to purchase those policies. Truck drivers working on a lease will have to look at their contracts to see what they need.

Average Truck Insurance Rates

Trucking insurance rates can vary among both insurance companies and the type of coverage that you get.

For general liability insurance, you typically pay anywhere between $750 and $7,000 a year. This gives you a coverage limit of about $1 million.

Trucking liability insurance costs about $2,500 to $4,000 per trucker. This will cover about $750,000 at least for each driver. Non-trucking liability costs about $450 to over $5,000 per trucker and covers about a quarter of a million.

Bobtail insurance has an annual premium estimate of about $450. This has a coverage limit of about $1 million.

Physical damage insurance works a little differently. There’s usually not a set minimum coverage, as insurance companies typically cover the cost of damage on your trucks. As a result, the annual premium rate is a percentage of the truck’s value.

What Affects the Cost of Local Trucking Insurance?

As with any other type of insurance, different factors change the cost of insurance for each individual driver or company. For example, a credit score can affect how much money a bank will loan a homeowner.

Trucking insurance works in similar ways.

A driver’s experience on the road and their safety track record can affect insurance rates.

A cleaner record with few accidents or claims often leads to better prices. On the other hand, a driver that’s had a lot of accidents over the years will have trouble finding cheaper rates.

The type of trucks used by a company will also affect prices. A newer truck is inherently more valuable. This leads to higher insurance rates when compared to older models.

If your drivers take longer interstate trips, that could also affect rates as well. Longer drives present more chances of an accident, leading to expensive policies.

The type of cargo you’re hauling can also affect prices. If you’re carrying valuable resources, you might more expensive insurance.

You can choose a payment plan that lets you pay more upfront to keep monthly rates lower. If you have a higher credit score, you might be able to negotiate lower rates as well.

Get the Right Commercial Truck Insurance Rates Today

Figuring out the cost of trucking insurance can be confusing. Nevertheless, it’s an important component of any trucking business. Use this guide to understand what goes into assessing insurance rates and how that affects your company’s budget.

Looking for reliable local trucking insurance? Shopping around for commercial trucking insurance? Contact us today and we can get you started on a solution!

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