Semi-truck insurance is an essential part of doing business in the trucking industry. All owner-operators must have trucking insurance in place according to federal and state regulations.
If you’re wondering how much commercial truck insurance costs as you get started, it’s important to understand that semi-truck insurance costs will vary depending on certain factors. Simplex Group provides truck drivers and trucking companies with the trucking insurance they need along with ELD solutions, compliance, permitting, and other essential services for a successful trucking business. In this blog post, we delve into the factors that could impact your semi-truck insurance cost to help you estimate how much you need for proper insurance.
How Much Is Truck Insurance Per Month?
Truck insurance cost will depend on many variables, though for those who work with a motor carrier, it averages between $300 to $400 per truck. A truck driver who operates on their own can expect to pay upwards of $1000 to $1800 in truck insurance per month.
Semi-truck insurance certainly costs more because driving commercial vehicles comes with greater risks. Your costs will depend on whether you operate under your own authority or with a motor carrier.
For truck drivers operating under their own authority, you will need to use trucking insurance companies that can set you up with primary liability insurance, worker’s compensation accident insurance, and physical damage coverage. If you are working with a motor carrier, they will cover many of the requirements of semi-truck insurance, though you may have to cover part of the cost. Worker’s compensation truck insurance, physical damage insurance to provide for physical damage coverage, and non-trucking liability insurance coverage—which you may know by the name of bobtail insurance—are the types of trucking insurance you will need.
Factors That Impact the Cost of Your Commercial Truck Insurance Policy
When running a commercial trucking business, it is smart to plan on the costs of having primary liability coverage along with other types of insurance coverage to protect your trucking company. Truck insurance rates will therefore vary based on your needs. It’s helpful to get truck insurance quotes to fully understand the insurance costs you will face.
Truck insurance providers tend to base rates on these factors:
- Types of cargo
- Safety record of motor carriers or owner-operators
- U.S. DOT authority
- Operating areas, especially with longer distances
- Truck’s weight, vehicle type, and age
- Driving history
Experienced drivers with clean driving records will see lower insurance rates while those with risk factors such as driving hazardous materials will have a higher insurance cost. In addition to these various factors, your insurance costs will depend on the required coverage needed to legally operate in your location and nationwide.
Primary Liability
Primary liability is a type of general liability insurance required for legal operations. It includes property damage liability and bodily injury, which can protect you in the event of a trucking accident.
Physical Damage Insurance
There are different types of commercial insurance a trucking company should have in place to protect from damages. Collision coverage for commercial trucks pays for damages in an accident, regardless of fault while comprehensive insurance covers damages due to weather or vandalism.
Occupational Accident Insurance
Occupational accident protects you in the event of an accident while on the job. Driving trucks can be a high-risk job with higher chances of becoming injured while handling cargo, getting into an accident, or coming into contact with hazardous materials.
General Liability
You can add general liability to your insurance policy as an extra measure of protection along with physical damage coverage.
Optional Insurance Coverage
The insurance company can provide additional options that are not required for motor carriers but may be beneficial. Sometimes, coverage limits on required policies aren’t enough to protect a business owner. You should consider all your liabilities to choose the right insurance.
Motor Truck Cargo Insurance
You’ll cover the freight with motor truck cargo insurance, a smart move for any motor carrier.
Non-Trucking Liability
A motor carrier can protect themselves when the truck is being driven outside of the scope of work.
Uninsured Motorist Coverage
You can get uninsured motorist coverage or underinsured motorist coverage to protect your semi-truck in accidents caused by someone who has too little coverage or none at all.
Ways to Reduce Your Semi-Truck Insurance Costs
If you want to reduce your insurance cost for trucks, maintaining a clean driving record is the best way. Just like insurance for passenger vehicles, trucking insurance rewards a clean driving record with lower premiums. New authorities can expect higher premiums due to the risk of issuing insurance to a new owner-operator.
There are other ways to get discounts, which is why it benefits motor carriers to ask what is available. It may be cheaper to get an umbrella insurance policy to put everything all together or pay a lump sum for your premiums rather than pay these costs monthly.
A higher deductible may be the answer to reduce costs from the start, but many factors should go into this decision. Ultimately, a trucking service provider may be the best way to get the insurance you need at the best prices.
Simplex Group can help you reduce the costs of your premiums with discounts and incentives. Additionally, we provide other services that can help you as an owner-operator for smooth operations. We offer safety and compliance training and advanced ELD solutions, help you get the right permits and licensing, and provide bookkeeping services. That’s just the short list of how we can help you determine the best road forward.
If you’re wondering how to get the best insurance premiums for one truck or an entire fleet, see what Simplex Group can do to simplify trucking for you. Contact us today!