Owning a truck is a big responsibility and a major investment, so you want to make sure you’re protecting your assets with the right kind of insurance. But no matter what type of truck you own, or where you live, it can be tricky to determine the average cost of truck insurance.
The good news is that there are some basic guidelines to follow when calculating your potential costs. To make sure you know what you’re getting into when shopping for your insurance policy, we’ll walk through the different factors that come into play and show you how to calculate the average cost of truck insurance for yourself.
No matter what type of coverage you choose—from full-coverage policies that include repairs and medical bills, to basic plans offering just liability protection—we’ll help ensure that you understand all the costs associated with protecting your truck. So, let’s get started!
What Is the Average Cost of Truck Insurance?
Are you looking to get insured for a truck? It’s essential to understand the average cost of truck insurance before you sign up for a policy. In general, semi truck insurance costs between $3,000 and $5,000 per year. The average monthly cost for commercial truck insurance ranges from $703 to $1,118 depending on the size of the vehicle. For pickups, the average annual premium is estimated at around $1,731.
When you are shopping for a truck insurance policy, remember to look at different companies and compare coverage amounts and deductibles. Also consider the type of cargo being transported as this will affect your premiums. If you are shopping for an individual policy or a policy for your business, don’t forget to ask about discounts that could reduce your premiums even further.
What Impacts Your Truck Insurance Premium?
When it comes to calculating the average cost of truck insurance, there are a few factors that come into play. These include the type and value of cargo being hauled, driver age and experience, and the company’s safety rating. All of these elements can make your premium higher or lower, depending on each factor.
Let’s start by looking at the type and value of cargo you are hauling. The premium for an insured vehicle is based on the size, type of products and how much it is worth. Insurance carriers take into account different types of items like food, electronics, jewelry and other valuables that have specific requirements or have a higher risk associated with them.
Next, let’s look at driver age and experience. It is well known that younger drivers are considered more at-risk than their more experienced counterparts due to their lack of knowledge on proper driving habits. This leads to higher risk situations that can result in more claims filed by insurers.
Finally, companies with high safety ratings may see lower rates because they have taken steps to protect their assets from potential accidents or theft. By reducing the chances of accidents or theft through safety protocols like proper training for employees or safety audits for trucks, insurance companies can better manage their risk levels and adjust premiums accordingly.
Are older trucks cheaper to insurance?
Many people think that insuring an older truck is cheaper than insuring a newer one. While this may be true in some cases, it’s not a guarantee. To get classic truck insurance, the truck needs to have a minimum value of $3,500 and the average annual premium for truck insurance in 2020 was $1,731.
Still, classic car insurance policies usually cost between $400 and $1,000 per year. This is because many classic car insurers use an agreed-value system instead of market value ratings for older vehicles. On average, this can save you anywhere from 20% to 75%.
So if you’re looking to insure an older truck or classic car, shop around for rates – you might be surprised by how much you can save.
How to Keep Your Truck Insurance Cost Down
Lowering your truck insurance cost is possible—the first thing you need to be aware of is that Non-Trucking Liability insurance typically costs between $350-$400 a year. This type of coverage pays for any damages caused by a truck, even if the driver isn’t working on behalf of the insured.
Next, if you’re in charge of an entire fleet, it’s important to investigate if one insurance company can cover all your trucks—in some cases, bundling the different types of coverage together can help you lower the overall cost.
An insurance rate also depends on how often a truck is used, so you’ll want to keep track of that too. Finally, be sure to consider paying annually instead of monthly for your truck insurance—doing so can help to lower your total cost and provide peace of mind all year round.
Factors That Influence Truck Insurance Rates
Knowing the average cost of truck insurance is useful, but it’s important to remember that the rate you pay for coverage will depend on a few different factors. Here are some key elements that determine how much you’ll be paying for your truck insurance:
Type and value of cargo
The type of cargo being hauled will affect the size of your premium. If you’re hauling something that is expensive or particularly delicate, such as high-end electronics or art pieces, then you can expect higher insurance rates as these items are more likely to be damaged or stolen.
Age and experience of drivers
Experience matters when it comes to truck insurance — with more experience behind the wheel, comes a better (lower) rate. The age of your drivers also plays a role in insurance costs — younger drivers with little experience tend to be more costly to insure.
Accident history
Finally, your accident history also plays a role in determining your truck insurance rate — any accidents, whether they were your fault or not, can make you more costly to insure as insurers deem you more likely to have an accident again in future.
The Importance of Shopping Around for Best Rates
When it comes to the cost of truck insurance, many don’t realize the importance of shopping around for the best rates. It’s estimated that people could save up to 10 percent on their premium by just doing a little bit of research and comparing auto insurance rates.
You should also periodically shop around for car insurance in order to get the best deal available. Rates can change over time due to a variety of factors and you don’t want to miss out on a great deal.
Also, having consistent coverage can help lower your premiums. If you prove to an insurer that you’re dependable, chances are they will offer you incentives such as lower premiums or discounts.
What Are the Common Coverage Options for Truck Insurance?
So what are the common coverage options for truck insurance? Knowing what types of coverage your business requires can help you when calculating the average cost of truck insurance. Some of the most common coverage options include:
Liability:
This type of coverage helps pay for medical and vehicle repair costs for any damages caused to another person or property by a truck driver. This is typically the most expensive type of insurance but it is essential if you have employees driving trucks for your business.
Uninsured and Underinsured Motorists:
This type of coverage helps pay for medical and vehicle repair costs in case a driver has no liability insurance or does not have sufficient coverage. This type of policy will provide much-needed protection in case one of your drivers is involved in an accident with an uninsured or underinsured motorist.
Collision:
This type of policy helps cover the cost to repair or replace a damaged truck due to a collision with another vehicle, object, or even due to flipping over when taking a turn too fast. This policy can also cover damages resulting from theft and vandalism.
Comprehensive:
This coverage helps cover any non-collision related damages such as fire, hail, lightning strikes, and flooding. It can also be extended to cover theft, vandalism, and even animal-related damages.
By considering these common coverage options when calculating the average cost of truck insurance, you’ll be able to ensure that your business is fully covered.
Conclusion
Keeping commercial truck insurance up-to-date is an important part of any business, and understanding the cost of these policies is essential. On average, you can expect to pay anywhere from $1,800 to $12,000 annually for truck insurance, with higher premiums based on your vehicle type, cargo, operating radius, and other factors.
It’s important to shop around and compare quotes to get the best policy for your business. Don’t forget to consider additional coverages, such as cargo and liability coverages, that could save you money in the long run and provide adequate protection. By doing your research and comparing truck insurance policies, you can save money and ensure that you have the coverage you need.