Whether you’re a big rig driver or running a small business with a couple of trucks, you know the importance of having reliable, affordable commercial truck insurance. But how much does it actually cost?
It’s impossible to give an exact answer without knowing the specifics of your business, such as the number and type of vehicles, but what we can do is discuss the factors that go into calculating commercial truck insurance premiums and how you can lower them. We’ll also look at what type of coverage is recommended for businesses and individual drivers.
So if you want to get up to speed on commercial truck insurance and get an idea of what you can expect to pay, let’s dive in and explore how much commercial truck insurance costs.
Understanding Commercial Truck Coverage
If you’re a business looking to protect your commercial trucks from potential damage, you should know that commercial truck insurance is the way to go. While the rate of your coverage will depend on a few factors, understanding the three main types of truck coverage can help you make an informed decision when it comes to protecting your vehicles.
The first type of commercial truck insurance is Federally-required liability insurance, which is determined by the weight of the truck and whether it carries hazardous materials. This kind of coverage provides protection for third-party claims resulting from bodily injury or property damage caused by your insured commercial vehicles while they are in use.
Second, there’s commercial auto liability, which provides coverage for the trucker who transports cargo on behalf of customers. This type of insurance can cover medical bills and other expenses that may result from an accident involving those with whom the business has a contractual relationship.
Finally, commercial truck insurance also offers vehicle protection, like collision and comprehensive physical damage coverage for when a truck or trailer becomes damaged or vandalized. It also offers driver protection in case something happens to them during their shift. All these three types are incredibly important parts that make up a standard commercial truck insurance policy; understanding each one can give you a better understanding of how much each type will cost in your overall policy.
Factors Impacting Commercial Truck Insurance Costs
The cost of commercial truck insurance is determined by a variety of factors, including the type of vehicle and its purpose, the driver’s accident history, and the type of coverage required. Insurance premiums for a new CDL driver are typically more expensive than those with a clean record.
Different types of commercial truck insurance come with varying costs. For example, general liability insurance typically costs between $500 and $2,000 per truck each year. This covers third-party property damage caused by your truck and cargo damage caused by accidents or other events.
Non-trucking liability insurance is also an important component to account for in your policy – this offers liability protection when you’re not engaged in a business-related activity. This type of coverage is specially tailored for new CDL drivers and can be more expensive than standard general liability fees.
Basic vs. Comprehensive Coverage Levels
When it comes to commercial truck insurance, there are two levels of coverage to consider: Basic and Comprehensive. Choosing one or the other will be an important factor in how much you end up paying for your policy.
Basic Coverage
At the basic coverage level, you’re looking at anywhere from $8,000 to $14,000 per year for a typical policy. This will cover you for federal law-required liability insurance of at least $750,000 per truck. This type of policy will also cover physical damage to the truck and cargo protection, plus liability for any damage caused by the trucker while operating their vehicle.
Comprehensive Coverage
Comprehensive coverage policies offer extra layers of protection that don’t necessarily come with basic packages, such as medical payments and non-trucking liability insurance. Non-trucking liability insurance typically costs around $2,500 to $4,000 per trucker and can help protect your business against lawsuits resulting from an accident while they’re not on the clock. If you added this coverage to a basic policy it could raise the cost of your premiums by around 20%.
Insurance Requirements by State
If you’re a trucker, you’re likely already familiar with the fact that every state except New Hampshire and Virginia requires drivers to carry a minimum amount of liability insurance. That being said, the minimum liability coverage required could vary from one state to another. Generally, the required coverage levels are 25/50/25: $25,000 for bodily injury to one person; $50,000 for bodily injury to two or more people; and $25,000 for property damage liability.
However, some states may require higher coverage amounts — like 50/100/50 — so it’s important to check the specific requirements in your state. Make sure you have financial responsibility in states that do not mandate car insurance because it could help pay your legal costs if you are found liable for causing an accident.
Those are just a few things about commercial truck insurance costs and requirements that you should consider when trying to determine how much your coverage needs would cost you.
Tips for Finding the Best Commercial Truck Insurance
If you’re shopping for commercial truck insurance, it’s important to be smart and not just go with the lowest quote you can find. Having the right coverage is more important than trying to save a few bucks. Here are some tips to keep in mind:
Hire Wisely
The age and experience of a driver can have a big impact on the price of your commercial truck insurance, so if you hire new drivers, it’s important to make sure you’re taking into account their specific needs. For example, younger drivers tend to pay more for their insurance, but having safety training can help reduce those premiums.
Consider Driver Age & Routes
As mentioned above, age affects commercial truck insurance rates, but other factors like the routes your drivers take can also influence premiums. Certain routes present higher risks than others due to the terrain or traffic conditions, so if your drivers are taking high-risk routes often, you’ll likely pay higher premiums.
Get Quotes from Multiple Insurers
No two insurers are the same when it comes to commercial truck insurance. It’s always wise to shop around and get quotes from multiple companies so that you’re getting the best coverage at the best possible price. Remember that it’s not all about just finding the lowest rate—you want to make sure you’re getting comprehensive coverage that meets your company’s needs.
Working With an Insurance Broker for Better Coverage
Do you want the best commercial truck insurance you can get for your money? You may want to consider working with a professional insurance broker who will represent and work on behalf of you as the consumer. Insurance brokers are experienced professionals who have knowledge and expertise in insurance policies, and they can access multiple providers to find and compare policies that match what you need.
When you partner up with an insurance broker, there are a few advantages that come with it:
- Better coverage – Rather than just picking any policy, your insurance broker will make sure that you are getting the best coverage for your needs at the right price.
- Quality support – Insurance brokers have extensive experience in dealing with all kinds of policies, so they can provide much better quality support than trying to deal with companies directly.
- Personalized service – Insurance brokers pay attention to your specific needs and requests, rather than just offering a standard policy like most companies do. They will make sure you get exactly what you need from your policy at an affordable rate.
- Full disclosure on commission rates – Insurance brokers provide full disclosure on any commission rates associated with their services, so you know exactly how much money is going to them for finding the right policy for you.
Conclusion
Commercial truck insurance is an essential for trucking businesses, as it provides protection in the event of an accident or other unforeseeable circumstances. Knowing the cost of coverage is important, as it can help truckers, trucking business owners and other stakeholders to budget the amount needed to insure the vehicles.
The cost of commercial truck insurance varies depending on the type of coverage, the size of the fleet, the type of vehicle and other factors, but is typically higher than standard auto insurance policies. It’s important to shop around and compare quotes from multiple insurers to ensure that you’re getting the most competitive rate. Additionally, it’s important to ensure that you are covered for the type of coverage needed to protect your business; when in doubt, ask an expert or contact your insurance agent.