If you operate a truck for work, particularly a semitruck, securing the appropriate insurance coverage is essential. The MarketWatch Guides team will clarify truck insurance, outline its costs, and suggest some of the top car insurance providers for obtaining truck insurance.
Key Points
Insurance for semitrucks fulfills legal requirements for operation and protects your finances in case of an accident involving you or your employees.
Essential coverages for trucks typically include primary liability, physical damage coverage, occupational accident insurance, and general liability insurance.
What Is Semitruck Insurance?
Truck insurance is mandatory for legal road operation, similar to standard car insurance. Given the higher risks associated with driving trucks, especially semitrucks, the insurance premiums are usually significantly more than for regular vehicles. These elevated premiums help safeguard you and your business from the financial repercussions of accidents.
Types of Truck Insurance Coverage
Several types of coverage are necessary for semitruck operation.
Primary Liability Insurance
Federal law mandates primary liability insurance, though state laws vary. This insurance covers damages you cause during truck operation, including:
- Property Damage Liability: Covers repair and replacement costs for another party’s vehicle or property if you are responsible for the accident.
- Bodily Injury Liability: Covers medical expenses incurred by another party injured in an accident caused by you.
Additionally, primary liability will assist with your legal defense costs if you face a lawsuit due to an accident.
Physical Damage Insurance
This type of insurance encompasses multiple coverages that protect your vehicle from damage, including:
- Collision Insurance: Pays for damage to your vehicle regardless of fault in an accident and covers incidents like rollovers.
- Comprehensive Insurance: Covers damages from non-collision events such as theft, vandalism, or natural disasters.
Physical damage policies can involve a deductible, the out-of-pocket cost you cover when filing a claim, and higher deductibles generally lead to lower premiums.
Occupational Accident Coverage
This coverage is vital for protecting truck drivers in the event of job-related accidents. The trucking industry poses significant risks, so having protection against injuries incurred while handling materials or cargo is crucial. While not legally required, Occupational Accident (OA) insurance can offer flexible coverage options.
General Liability Insurance
This type of insurance addresses any liabilities not covered by your physical damage policy, protecting your business rather than just the truck itself. It’s sometimes referred to as business liability insurance.
Optional Truck Insurance Coverage
Other insurance options to consider may include:
- Motor Truck Cargo Insurance: Covers freight carried by the truck.
- Underinsured/Uninsured Motorist Coverage: Covers repairs and medical costs if involved with a driver with inadequate insurance.
- Trailer Interchange Policy: Insures damage to a non-owned trailer.
- Non-Trucking Liability (NTL): Provides coverage during non-business use of the truck.
- Bobtail Insurance: Offers liability coverage for owner-operators after delivering cargo.
Average Cost of Truck Insurance
Typically, commercial truck insurance costs range from $9,000 to $16,000 annually for independent truck drivers with a clean record. If you lease to a motor carrier, monthly expenses can be significantly lower, ranging from $250 to $450.
Truck insurance costs also vary by state due to differing regulations. However, rates have been on an upward trend in recent years. To better understand how much you may pay, reaching out to multiple insurance providers for quotes is advised. For instance, Progressive’s average national rates vary from about $736 to $1,125 monthly.
Factors Influencing Truck Insurance Costs
Several key elements impact the price of truck insurance, including:
- USDOT Authority: If you lease to a trucking company, that entity typically covers primary liability. Operating independently means covering all insurance costs.
- Cargo Type: Certain cargos are riskier to transport, influencing insurance rates.
- Operating Radius: A wider operating area increases exposure and risk, resulting in higher premiums.
- Vehicle Type: Insuring larger semitrucks is generally pricier than insuring lighter vehicles.
- Driving History: Infractions on your driving record can lead to significantly higher rates.
- Location: Insurance rates differ by state.
Ways to Save on Truck Insurance
Maintaining a clear driving record is the most effective way to reduce truck insurance costs. Consider these additional strategies for lowering your premiums:
- Select a higher deductible; this typically reduces your premium.
- Inquire about discounts; many truckers qualify for savings, including discounts for holding a valid commercial driver’s license (CDL) and paying the policy in full.
Is Truck Insurance Necessary?
If you run a business with commercial vehicles or you operate your own semitruck, you need truck insurance. The Federal Motor Carrier Safety Administration (FMCSA) enforces certain coverage limits for legal operation on public roads.
Truck Insurance Costs
Truck insurance rates vary significantly by state and are impacted by multiple factors. Coverage typically includes primary liability, physical damage, occupational accident, and general liability insurance, along with optional coverages to ensure thorough protection while driving a truck.
Top Auto Insurance Recommendations
It’s advisable to obtain quotes from various providers to secure the most competitive rates. Progressive and State Farm are two highly regarded insurers that offer truck insurance options.
Progressive: Recognized for being the largest commercial auto insurer in the U.S., offering accessible online tools and a variety of coverage options even for those with a troubled driving record.
State Farm: The leading private passenger auto insurer, providing standard insurance types and a broad network of local agents to assist in finding suitable policies.
Truck Insurance Cost: FAQ
Below are some common inquiries regarding truck insurance costs:
Are trucks more expensive to insure?
Yes, trucks are typically larger and heavier, which increases potential damage in accidents, leading insurers to charge higher premiums.
Why is truck insurance costlier?
Trucks can cause significant damage in collisions and are expensive to repair. Additionally, the value of the cargo they transport also necessitates higher insurance costs.
What does the insurance company charge?
Insurance companies charge a premium, which is the payment required for your policy. Most policies require annual, semiannual, or monthly payments to keep coverage active.
Our Methodology:
To provide unbiased and accurate information, we developed a comprehensive rating system for evaluating the best car insurance companies. Our research involved collecting data on numerous providers and considering various factors to determine an overall score for each.
The evaluation includes:
- Coverage Options (30%): A variety of insurance choices likely to meet different consumer needs.
- Cost and Discounts (25%): Estimates of insurance rates combined with potential discount offerings.
- Industry Reputation (20%): Insight on market share and expert ratings based on years of operation.
- Customer Experience (15%): Ratings based on complaint volumes and satisfaction metrics.
- Availability (10%): Companies offering broader state coverage and minimal eligibility requirements score higher.
Our credentials:
- Over 800 hours of research conducted.
- 130+ companies assessed.
- Over 8,500 consumers surveyed.
*Information is accurate as of publication time.
