If you drive a truck for business, particularly a semitruck, it’s crucial to obtain appropriate insurance coverage. The MarketWatch Guides team will explain truck insurance, cover its costs, and suggest reliable car insurance companies for truck insurance.
Key Takeaways
The cost of truck insurance can fluctuate based on various factors.
Semi truck insurance fulfills legal requirements and offers financial protection in the event of an accident.
Essential coverages for trucks include primary liability coverage, physical damage insurance, occupational accident insurance, and general liability coverage.
Understanding Semi Truck Insurance
Truck insurance is legally required much like standard car insurance; however, premiums for trucks tend to be significantly higher due to the increased risks. These higher costs are designed to relieve financial burdens following accidents. To find the most affordable truck insurance options, compare quotes from different insurance companies.
Types of Truck Insurance Coverage
There are several types of coverage essential for operating a semitruck.
Primary Liability Insurance
Federal law mandates primary liability insurance, though each state sets its own regulations. This insurance covers damages you may cause while driving a truck, which includes:
- Property Damage Liability: Covers repairs to another party’s vehicle or property if you are at fault.
- Bodily Injury Liability: Pays for medical expenses of individuals injured in accidents you cause.
Physical Damage Insurance
This includes various types of coverage for damage to your vehicle, such as:
- Collision Insurance: Covers vehicle damage irrespective of fault.
- Comprehensive Insurance: Protects against non-collision events like theft or vandalism.
- Fire and Theft with Combined Additional Coverage: An alternative to comprehensive coverage with limited protections.
Occupational Accident Coverage
This type of insurance is vital for protecting truck drivers from work-related injuries, operating similarly to workers’ compensation. Although not legally required, it provides essential financial assistance during occupational accidents.
General Liability Insurance
This coverage addresses gaps in physical damage policies, focusing on the business rather than the truck itself, often referred to as business liability insurance.
Average Cost of Truck Insurance
Experts estimate that the cost of commercial truck insurance is approximately $9,000 to $16,000 annually for independent truckers with clean records. Costs may be lower if leasing with a motor carrier, typically ranging from $250 to $450 monthly. Insurance costs vary by state due to differing regulations, and have been on the rise.
Factors Influencing Truck Insurance Costs
Several elements contribute to your insurance premium, including:
- USDOT Authority: Your insurance responsibility changes based on whether you lease to a trucking company.
- Cargo Type: Riskier cargo can lead to increased rates.
- Operating Radius: A broader operational area increases exposure to risks.
- Vehicle Type: Heavier vehicles typically cost more to insure than lighter ones.
- Driving History: A spotty driving record can cause rates to rise sharply.
- Location: Insurance costs fluctuate by state.
Saving on Truck Insurance
To reduce truck insurance costs, maintain a clean driving record and consider these methods:
- Opt for a higher deductible to lower your premium.
- Inquire about discounts that might be available, such as those for having a valid commercial driver’s license (CDL).
Is Truck Insurance Necessary?
Business owners with commercial fleets or those operating their own semitrucks must carry truck insurance. The Federal Motor Carrier Safety Administration (FMCSA) imposes certain coverage limits essential for legal operation on public roads.
Top Recommendations for Truck Insurance
We suggest obtaining quotes from various insurance providers to secure competitive rates. Progressive and State Farm are prominent insurers offering truck insurance options.
Progressive: Ideal for Tech-Savvy Drivers
Progressive is the largest commercial auto insurer in the U.S., known for affordability and a user-friendly online platform, including their Name Your Price® tool.
State Farm: Best Customer Experience
State Farm, the largest private passenger auto insurer, offers standard coverage for a variety of commercial trucks and numerous local agents to assist with policy selection.
Truck Insurance Cost FAQs
Common inquiries regarding truck insurance include:
- Are trucks more expensive to insure? Yes, due to their larger size and potential to cause more damage in accidents.
- Why are trucks more costly to insure? Their potential for causing significant damage and high repair costs contribute to increased premiums.
- What fees does the insurance company charge? A premium is required for a valid insurance policy, varying in payment frequency.
Our Methodology
To provide accurate info, we developed a rating system assessing auto insurance companies. Our evaluations consider factors like coverage variety, cost and discounts, industry reputation, customer experience, and availability. We conducted extensive research across over 130 companies and surveyed more than 8,500 consumers.
*Data is accurate as of publication.
