From food delivery to furniture transport, it’s no surprise that trucking businesses are so popular. But, before you jump in and invest in a truck of your own, you need to consider the costs. From fuel to maintenance and parts, there’s a lot to consider – but have you thought about insurance? That’s right, commercial truck insurance is an important part of any business that involves driving.
So, when it comes to securing truck insurance, what should you expect? This article will answer all of your questions about truck insurance and provide everything you need to know to make an informed decision about your protection. From liability coverage to physical damage coverage, let’s take a look at how much truck insurance can cost and understand how it works.
Calculating Truck Insurance Costs
So, what does truck insurance cost? Well, there are a few factors that go into calculating the cost of truck insurance. Generally, your insurance provider will calculate the price of a policy around $3/month for every thousand of a truck’s value. Additionally, general liability insurance typically costs between $750 and $7,000 a year. On average, the monthly cost for commercial truck insurance ranges from $703 to $1,118.
It’s important to note that other factors—such as experience level or driving history of the driver, hazardous material transported and type of cargo—all play a role in determining the total costs of your policy. That’s why it’s best to consult with an insurance provider when you’re shopping around for a policy and make sure you understand what is and isn’t covered under the plan you choose.
Coverage Types and Options for Trucks
If you’re looking to get truck insurance, it’s important to understand the types of coverage available for your truck. While there are several options, two main ones to consider are Primary Auto Liability and Bobtail Insurance.
Primary Auto Liability covers damage caused to people and property when you’re driving your truck. This means that if you were responsible for an accident and it caused damage to someone else or their property, your insurer would be responsible for covering the costs.
Bobtail Insurance covers liability when your truck is driven without a shipment—for example, when you’re driving back from a job or returning home after being out of town on business. This type of insurance helps protect you in case of any accidents or damage while driving outside of the job.
Finally, Physical Damage insurance covers damages done directly to the truck or trailer itself, including repairs due to wear and tear or an accident. You can also add optional coverages such as emergency roadside assistance and cargo insurance to fit your needs.
Understanding Industry Risk Factors
If you own a trucking business, you understand there are many industry risk factors that impact your business and its profitability. It’s important to become familiar with industry risk in order to properly protect your trucking business from potential losses.
Industry risk refers to factors that can positively or negatively impact a specific industry. These factors can include changes in technology, government laws and regulations, taxation, pricing, customer demand and more. While some of these factors may not be fully controllable by you, understanding them can help you better prepare for the risks they may impose on your business.
Business risk is the exposure a company or organization has to factor(s) that will lower its profits or lead it to fail. Business risk factors include competitive environment, new business development, potential impact of currency fluctuation and risks associated with stock code. Understanding these risks can help you determine the right type of insurance needed for your trucking operation.
For example, if your company operates in an area that has high competition then insurance premiums may increase due to higher liability claims exposure associated with this type of environment; while focusing on safety essentials such as driver training programs may decrease premiums.
Factoring in the Value of Your Truck
When calculating the cost of truck insurance premiums, it’s important to factor in the value of your truck. Your insurer will typically calculate the actual cash value (ACV) of your vehicle as its pre-collision value. This can include any modifications to the truck, like adding a refrigeration unit or a bedliner.
If you’re transporting goods that are valuable, you also need to factor in their insured value when determining your premiums. The insured value is typically calculated by adding the commercial invoice value of the goods to the cost of freight and adding 10% for safety’s sake.
The annual cost for truck insurance premiums can range from $12,000 to $20,000. This depends on things like your driving record, location and other factors that are specific to you and/or your business. It’s best to get quotes from a few different insurers in order to determine which one provides the best coverage at an affordable rate.
Comparing Rates From Different Companies
When it comes to commercial truck insurance, you should always compare rates from different companies. After all, insurance companies offer different rates for the same driver. To ensure you get the best deal possible, it’s a good idea to get quotes from at least three different companies.
Things That Can Affect Cost
There are a few things that can affect the price of a commercial truck insurance policy—you should always keep these in mind when looking for quotes:
- The type of truck you own: Different types of trucks can have varying prices when it comes to truck insurance—semi trucks may have higher premiums than smaller box trucks, for example.
- Your driving history and record: As with most other kinds of insurance policies, a driver’s record can affect how much they pay in premiums.
- State regulations: Different states have different laws when it comes to commercial truck insurance, so be sure to research any state-specific regulations that may apply in your area.
Knowing When to Contact an Agent
If you’re wondering how much truck insurance costs, it’s essential to know that when you’re ready to purchase it, you should contact an agent. Truck Insurance Office, Inc., with over 50 years of experience in the trucking industry, is a great example of who to contact.
Trucking agents can be found through Acrisure dba Dillon Risk Management who can provide guidance and assistance as you’re shopping for coverage. Great West Casualty Company is another leader in commercial trucking insurance and has been helping businesses grow since 1946.
From knowing what type of coverage fits your needs to finding the best rate for your budget and even filing a claim, an agent will be able to walk you through it all and make sure that your business-critical asset is insured correctly. With their extensive knowledge of the industry, they should be able to identify any potential pitfalls before they become issues down the line.
how much does commercial truck insurance cost
You’re probably wondering ‘how much is this going to cost me?’
Well, if you’re the owner and operator of a commercial truck, you can expect to pay between $9000 and $15,000 a year for truck insurance—that’s about $703 to $1,118 per month. If you are just a new CDL driver looking for non-trucking liability insurance, the cost will be lower – typically from $5,000 to $10,000.
So it may be pricey—but it’s well worth it in the end. By investing in commercial truck insurance, you can have peace of mind that you are protected from any unfortunate circumstances during your journey.
how much is commercial truck insurance in texas
You might be surprised to find out that commercial truck insurance in Texas is quite affordable. In fact, according to recent numbers, the average cost for commercial truck insurance in Texas is $13,606 per year.
The range of Truck Insurance Cost in Texas
That said, the cost of commercial truck insurance in Texas can range from $8,000 to $12,000 per year. Credits and about credits lower or increase the cost. That’s why it’s important to shop around and compare rates before you purchase a policy.
Also keep in mind that if you’re a new driver or have a history of traffic violations or accidents on your record, your premiums may be higher than the averages mentioned here. Other factors that might affect your premiums include the type of truck and cargo you’ll be hauling, how far you drive, and how much coverage you need.
Still, commercial truck insurance in Texas can range from as low as $99 per month—making it an economical option for those who need to stay on the road.
In conclusion, truck insurance is not a one-size-fits-all policy and pricing can vary greatly depending on the type of coverage you select. There are a few factors that affect the cost of the policy, such as the age, type and size of the truck, the coverage limits and the specific state you are in.
When shopping for truck insurance, it’s important to get multiple quotes and compare coverage and cost before making a decision. Make sure to ask questions and read the details of the policy you are considering to be sure you are getting the right coverage for your needs.