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Trucking Insurance

Your guide to commercial truck insurance.

Updated on

September 15, 2023

What is trucking insurance?

Trucking insurance is a collection of insurance policies that protect trucking firms, independent truck drivers and companies that use trucks against losses that may arise from the usage of commercial trucks.

The insurance is designed to offer financial and legal protection against property damage and bodily injuries incurred while at work.

It also provides coverage for trucking equipment and specialized cargo.

Trucking insurance is exclusively used for large vehicles such as cement mixers, tow trucks, and semi-trucks that are often used for transportation work in construction, retail, and agriculture sectors.

How trucking insurance works

Trucking insurance, often procured by the owner of the vehicle, protects truck drivers and businesses that use the trucks. It only applies when persons listed on the policy are using the truck for business.

Although the cheapest commercial truck insurance can cost as low as $642 per month, the cost of policy is usually determined by driving record of the persons listed on the policy.

This means that even an insurer who offers the cheapest commercial trucking insurance in the market will be forced to charge higher premiums for inexperienced drivers or those with bad driving record.

Trucking insurance is usually available in the following categories:

Owner-operators – designed for individuals who run trucking businesses.
Private carriers – designed for individuals who use their vehicles to transport cargo on behalf of their employers.
Motor carriers – designed for companies that lease out their fleet of vehicles. These companies are responsible for insuring their vehicles.

When purchasing a policy, always ask the insurer to clarify:

Monthly premium – the amount a policyholder pays to retain the coverage.
Coverage – outlines the incidents, damage, and costs to be covered.
Deductible – the amount a policyholder must pay towards their claim before coverage settlement.
Policy limit – the maximum amount the insurer will pay towards a filed claim.

Insurance companies vary in how they handle claims.

Many insurers have a network of repair shops that policyholders must use for damage assessment and repair. The insurer will then settle the bill and invoice you for your portion depending on the deductible.

RELATED: Commercial Property Insurance

Some insurers may ask you to settle all repair bills up front after which they will refund you for costs that exceed the deductible.

You should ask the insurer to explain their compensation procedure.

Cheapest trucking insurance

As stated earlier, your ability to obtain the cheapest commercial truck insurance will largely depend on your driving record.

However, the average commercial trucking insurance policy is $642 per month for specialty trucks and up to $982 per month for transport trucks.

That being said, the easiest way to obtain the cheapest commercial trucking insurance is to scout for discounts or to choose a policy with less coverage.

Discounts

1.) Full payment discount – some insurers can extend up to 15% discount for policyholders who pay their premium in lump sum at the start of the coverage.

2.) Prior insurance coverage – some companies can extend a discount to policyholders who have maintained a coverage for the last 12 months.

3.) Business experience discount – trucking companies that have operated for more than three years are qualified to receive a business experience discount.

4.) Commercial driver’s license discount – independent truck drivers who have had a CDL for at least two years can qualify for a discount in their liability coverage.

5.) Higher deductibles – the higher the deductible amount the lower the premium. However, this option comes with the risk of paying more from your pocket when an accident occurs.