Consider A Higher Deductible
When implemented well, the factors above have the ability to push down your insurance premiums. If after implementing the aforementioned steps you still find yourself paying abnormally high premiums, consider adjusting your semi truck insurance policy. A higher deductible results in lower trucking insurance premium. However, you will have to bear higher upfront costs if an accident occurs. If you decide to go down this route, select a deductible your company can afford to front without additional burden. But, before proceeding with changes to your policy, set up a policy review with your commercial trucking insurance agent to find out the best options for reducing your companys insurance premiums.
Reducing your commercial trucking insurance premiums is not always easy. While the measures listed above, individually may not save you a great deal on your premium, collectively they can reduce your premiums substantially while also maintaining at or above-minimum coverage on your semi truck insurance policy.
Understanding Commercial Truck Insurance
Commercial truck insurance is a significant investment for business owners. Before signing up for a policy, it is important to understand the coverage that your business needs and to adhere to federal and state law. This guide will first provide an overview of commercial truck insurance, including the types of coverage, costs, and legal requirements. Then well review how to evaluate different providers and share some recommendations for top insurance companies that cover commercial trucks.
How Much Does It Cost
Commercial truck insurance is far from cheap. If you think the insurance for your personal vehicle is high, prepare yourself for some serious sticker shock. The average cost of a standard policy for a semi is between $9,000 and $15,000. For comparison, you can buy a new no-frills 2020 Hyundai Accent for $15,195.
A 20-year veteran driver we spoke with, Edwin Diaz, told us that his annual policy is $14,000. He described it as expensive, but worth it. Diaz has driven everything from vans to semis to fuel trucks and currently owns his own truck. His policy is so expensive partly because he has a hazardous materials endorsement on his license, and partly because he does a lot of his trucking in Florida. Its more expensive because its in the state of Florida. Florida has one of the highest insurance rates in the United States.
The total cost of your premiums is determined by many factors, some of which will be familiar to you if you have regular auto insurance, including but not limited to the following:
- How much professional driving experience you have
- How long youve been driving your current work vehicle
- Your age and gender
- The average mileage of your trips
- Where you drive, including interstate trips
- How much your truck is worth
- What type of cargo you transport
In short, as the payouts increase, so too do the pay-ins.
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Its All About Service
Once you find an insurer that understands your business, make sure that company puts its knowledge to work for you. Its great if your insurance company understands how to properly handle your claim after an accident, but if that company only allows you to report the claim on weekdays during business hours, you still run the risk of an after-hours accident that is not immediately addressed becoming very expensive.
In todays fast-paced world, 24/7 claims service should be a must-have for your insurance purposes.
The sooner the insurance company is able to get its experts involved, the better the odds are that your claim will be taken care of quickly, letting you get back on the road with minimal delay.
If the company has no one available to take your call at 8:30 p.m. on a Saturday, youre losing valuable time, and as youre discovering as you launch your new trucking company, time is money.
Youll also want to look into additional services that knowledgeable insurers can provide to help you, as a new business owner, identify and manage all of the expected and unexpected risks youll come across. Quality insurers will have experts who can meet with you and discuss loss control and risk management so you can prevent accidents and losses from happening.
Instate Or Interstate Trucking Routes
Interstate trucking routes require filing with the Federal Motor Carrier Safety Administration , and this will increase your commercial truck insurance cost significantly. It is highly advisable for new truckers to start with in-state routes first for 6 to 12 months to establish credit with insurance companies. Getting interstate commercial truck insurance is substantially expensive for new drivers.
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Q: What Kind Of Insurance Do Truck Drivers Need
A: At a minimum, truck drivers need a primary liability policy covering them when carrying loads. However, most truck drivers reduce their risk by adding other cargo, damage, and injury policies.The additional policies help cover your business needs in case of lawsuits or damage to your truck and trailer.
Shop Around To Compare Several Quotes
Different insurance companies offer different quotes because they have their own underwriting policies. Make sure that you shop around with a few companies or with a broker to compare several quotes to find the cheapest one for you. When you need to renew your policy, dont renew until you shop around again. The current company might provide you with the cheapest rate last year, but their rate might not be the cheapest this year. Shop around again!
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Does Truck Insurance Cover Personal Use
It depends. Coverage for the personal use of a commercial truck depends on whether the driver is operating under their own authority or leased to a motor carrier. If theyre operating under their own authority, theyre covered for all personal use under their policy. If theyre leased to a motor carrier, theyre usually covered for business use only, but they could get Non-Trucking Liability insurance to cover their personal use.
Best Customer Service: State Farm
With top satisfaction ratings and below-average consumer complaints in two out of the past three years, State Farm snags our pick for the best customer service among commercial truck insurance companies.
Coverage for individual or fleet vehicles
Available in all 50 states
Need to work with agent
Whether youre looking to insure a single commercial truck or an entire fleet, State Farm is our recommendation if youre looking for the best customer service experience. They earned the second spot for overall customer satisfaction in the 2021 J.D. Power U.S. Small Commercial Insurance Study and received far fewer consumer complaints than expected in 2019 among commercial auto customers, according to the NAIC.
Through State Farm, customers can purchase commercial truck insurance for single or fleet pickup trucks, box trucks, tractor-trailers, and more. The company offers liability, collision, comprehensive, personal injury protection , medical payments, and uninsured/underinsured motorist coverage.
Commercial truck insurance is available in all 50 states. Limited information is offered on State Farms website, and there are no online quotes instead, youll need to work with a local agent to get additional info to build and buy your policy.
State Farm currently boasts an A++ financial strength rating through AM Best, the highest possible.
To learn more information about this carrier, check out our full State Farm Auto Insurance Review.
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Truck Insurance For New Drivers: Choosing The Right One
So, you decided to go into trucking for a career? More than 3.5-million Americans work in the trucking industry as drivers, and its a significant driver of employment and economic activity across the country.
Choosing the right truck insurance for new drivers is a challenging task. Many insurers outright refuse to insure new drivers, and others make premiums sop expensive drivers look elsewhere.
However, there are insurers specializing in new driver policies. This post unpacks everything you need to know about choosing insurance as a new CDL holder.
Owner Operator Truck Insurance For Long
We offer an unlimited radius in most states for super regional truckers who need primary liability coverage. A policy must have at least one semi-truck tractor listed and an operating radius of greater than 500 miles to be considered super regional. Radius is calculated as the crow flies. In other words, your insurer will use the shortest distance between two points instead of road miles.
We currently don’t offer super regional trucking in Alaska, Hawaii, Louisiana or New York, but it’s good to check with us since this can change. Keep in mind, this restriction only applies to semi-truck tractors needing an unlimited radius.
The radius restriction doesn’t apply if you only need a physical damage policy or non-truck policy.
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What Does Average Semi Truck Insurance Costs For Owner Operators
What Does Semi Truck Insurance Cost on Average?
The average semi truck insurance costs between $3,000 and $5,000 a year for owner operators that lease on to a motor carrier.For an owner operator with their own authority, the average cost is $9,000-$12,000 per truck.For new authorities, semi truck insurance policies have increased in recent years and now are usually priced between $12,000 and $16,000.Where you fall on the spectrum depends on a many things, including:* What you haul* How far you typically drive* How much your truck is worth* Driver age and CDL experience* Your credit history* Your payment plan
All these factors skew your rate either higher or lower, and every company rates each factor differently. With such a wide range in costs, it really does pay to know your insurance carrier is working for you and carries the best possible coverage for you and your business at the best rate. Insurance is a large part of your monthly cost.
The Average Cost of Semi Truck Insurance Coverages
Coverage Average CostCargo Insurance Varies
How to Lower Your Semi-Truck Insurance Rates
Clean driving Insurance companies want to work with drivers who wont cost them money. As incentives, these companies offer cheaper premiums to operations with clean driving records and safe vehicles.
Our goal is to make it easy for you to get a free quote, compare, and get the best policy for truck.
How Can You Lower The Average Cost Of Commercial Truck Insurance
High truck insurance costs are impacting those drivers and businesses whose livelihood solely depends on trucking operations. The average cost of commercial truck insurance depends on the above factors, there are a few methods to lower your policy cost. By following the below-mentioned steps, you can give some sort of relief to your wallets.
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Owner Operators Under Permanent Lease To A Motor Carrier
It’s common for a motor carrier to provide primary liability insurance coverage while you’re working for them under permanent lease. This typically covers injuries or damage to other people or property if you’re found responsible for an accident.
Depending on your business, you might need additional owner operator truck insurance coverages, including:
- Non-Trucking Liability Protection for when you’re using your vehicle for personal use and not under dispatch.
- Physical Damage Covers the cost of fixing or replacing your truck if it’s involved in an accident or stolen.
- Trailer Interchange Physical damage coverage for non-owned trailers being pulled under a trailer interchange agreement.
While some motor carriers offer these specialized types of trucking insurance, you can often get a better deal by buying them yourself. This allows you to customize your owner operator insurance policy by fine-tuning the exact types and amounts of coverage.
What Is Required To Be Eligible For Commercial Truck Insurance
Trucking companies must file proof with the state and federal government that they have enough coverage on their trucks to cover both the value of the truck itself and the cargo, as well as protect against any liability claims, such as an accident that was the truckers fault.
Making that a bit difficult, especially for new drivers, is the two-year rule, an unofficial policy that many commercial trucking insurers have against insuring drivers with less than two years of commercial driving experience.
There are, however, a few companies that will still insure a new driver.
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Commercial Truck Insurance For New Drivers: General Requirements
Before getting into any business involving commercial trucks, owners or operators must show proof that they have enough coverage on their vehicles to cover both the cargo and the trucks value in case of any incidents.
Drivers should also have protection against liability claims in case an accident is due to their fault. Insurance providers usually have an unofficial rule requiring new drivers to have at least two years of commercial driving experience before they are approved. Most providers make this a hard and fast rule, but there are companies that offer insurance policies for new drivers regardless of their driving history.
Examples of the commercial truck insurance for new drivers include liability insurance and physical damage coverage, both of which take care of the driver in case of damage to the truck itself and to other drivers. The specific requirements vary per provider and the type of insurance purchased so its best to compare your options first before signing anything.
Progressive: Best Overall And The Only Carrier Offering Quotes Online
Progressive provides policies for a variety of commercial needs. The company routinely garners top pick or best overall ratings from commercial auto insurance reviewers online. Dont take our word for it, though. Both the BBB and AM Best rated Progressive an A+, meaning they have high customer satisfaction ratings and are financially stable.
Progressive actually started out as an insurer specializing in high-risk drivers only. They built a very successful business by serving high-risk consumers well and have expanded and grown over the decades to become one the biggest car insurance companies in the country. They probably have the most experience and knowledge to serve high-risk drivers.
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Commercial Truck Insurance For Owner
Owner-operators need commercial truck insurance. It covers vehicles, goods, and liabilities in an accident. The coverage and the policies that a truck owner-operator needs may be different from the one that a trucking business need. Learn more details in our comprehensive coverage of commercial truck insurance for owner-operators
If you are looking to buy truck insurance as an owner operator, learn more at the best truck owner operator insurance companies and how much does truck owner operator insurance cost
Here’s How To Get Cheap Truck Insurance For Young Drivers Under 25
So, which is the cheapest car insurance company for truck insurance for new drivers? Will Geico really save you $500 in 15 minutes? Is Progressive cheaper? The number one mistake made by car insurance seekers who look for Truck Insurance is approaching only the companies that are most heavily advertised. The first insurance company that comes to mind is not necessarily the one that will offer you the best rate.
The single most critical factor in getting a cheaper truck insurance rate, is shopping around for as many quotes as you can. Why? Because different insurance companies charge different rates for the same coverage. In addition, insurance companies’ competitiveness differs tremendously by customer location.
Only by obtaining several quotes, that are specific to your situation and location, you will be really able to discover the cheapest rate that is available to you. Now, usually shopping around for quotes can be a tedious and time consuming task. So, here is a little trick we use, to weed out the more expensive insurers, and discover exactly which is the cheapest auto insurance provider.
To discover the cheapest car insurance rate that is available to us, we use this free service. at 1-855- 981-7528. This is a free by phone service that specializes in locating the cheapest car insurance rates. They perform the tedious task of shopping around, and present you with the cheapest auto insurance provider for your location.
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Shop Around For The Best Value
Get quotes from several companies or an online insurance marketplace that represents multiple carriers so you can compare coverage and premium prices. Progressive, biBERK, and THREE offer fast online quotes which only take less than 10 minutes. If you want to compare several quotes in one place, Simply Business is a good broker to work with to obtain and compare several quotes.
Whats Typically Included In The Coverage
Typically, truck insurance for new drivers covers the following:
Liability Insurance This pays for any damage that occurs to others property caused by you and a limit of up to $1,000,000 is required.
Physical Damage This covers any damage that occurs to your truck and this coverage has 2 components:
Comprehensive Coverage This covers any damage which occurs outside any collisions, including vandalism, theft, damage caused by the weather, animals, etc.
Collision Coverage Covers any damage caused due to an accident caused by a collision.
Cargo Insurance This insurance covers any damage caused to the goods being carried in the trailer and most of the motor carriers and companies require the trucker to carry cargo insurance for any type of goods they carry.
Non-Trucking Liability or Bobtail Insurance This essentially covers the tractor when it is not connected to the trailer.
Loading and Unloading The cargo insurance usually does not cover the goods while being loaded onto the trailer and the loading/unloading coverage covers this gap.
Debris Removal In case of an accident, if the cargo is spilled, this coverage pays for the removal of the debris.
Combined Deductible If there is a major accident, you will have to pay the deductible of all the individual coverages. However, if you have a combined deductible coverage, you only will be required to pay a single amount.
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