For those operating trucks, especially semitrucks, securing the appropriate insurance coverage is crucial. The MarketWatch Guides team explains truck insurance, its costs, and recommends top car insurance companies for truck coverage.
Key Takeaways
Insurance costs for trucks can fluctuate based on various factors.
Semi-truck insurance meets legal requirements and offers financial protection in case of an accident.
Essential coverage for trucks typically includes primary liability, physical damage, occupational accident, and general liability insurance.
What Is Semi-truck Insurance?
Truck insurance, like regular car insurance, is necessary for legal operation. Given the increased risk associated with driving large vehicles, expect higher premiums. Comparing quotes from multiple providers can help you find affordable rates for your semi-truck.
Types of Truck Insurance
Operating a semi-truck requires several types of coverage.
Primary Liability Insurance
Required by federal law, primary liability insurance covers damages you may cause while operating your truck, including:
- Property Damage Liability: Covers repair costs for another party’s vehicle or property if you’re at fault.
- Bodily Injury Liability: Covers medical expenses for injuries sustained by another party in an accident you cause.
This insurance also covers your legal costs if you’re sued after an accident.
Physical Damage Insurance
This is a collective term for coverages addressing damage to your vehicle, such as:
- Collision Insurance: Covers your truck’s damage from accidents regardless of fault.
- Comprehensive Insurance: Covers non-collision incidents like theft or natural disasters.
Policies typically include deductibles, and a higher deductible can lower your premium.
Occupational Accident Coverage
This insurance protects drivers from job-related accidents, providing benefits similar to workers’ compensation, though it’s not legally required.
General Liability Insurance
General liability insurance covers business-related risks that aren’t included in physical damage policies.
What Is the Average Cost of Truck Insurance?
Experts estimate that annual costs for independent truckers can range between $9,000 and $16,000, with lower rates for those leasing to a carrier. Costs vary by state and continue to rise.
Factors Affecting Insurance Costs
Several elements influence the costs of truck insurance, such as:
- Carrier Authority
- Type of Cargo
- Operating Radius
- Vehicle Type
- Driving History
- Location
How to Save Money on Truck Insurance
To reduce costs, maintain a clean driving record and consider higher deductibles. Also, check for available discounts based on your commercial driver’s license status or paying your premium in full.
Do I Need Truck Insurance?
If you’re a business owner with commercial vehicles or operate your own semi-truck, truck insurance is essential, as mandated by the Federal Motor Carrier Safety Administration.
Truck Insurance Cost
Truck insurance rates differ by state, influenced by many factors, and necessitate primary liability, physical damage, occupational accident, and general liability coverage.
Recommended Auto Insurance Providers
For optimal rates, obtain quotes from various insurers. Progressive and State Farm are highly regarded for truck insurance.
Progressive: Best for Tech-Savvy Drivers
Leading in commercial auto insurance, Progressive offers affordable rates and user-friendly online tools to customize your coverage.
State Farm: Best Customer Experience
As a top provider for private auto insurance, State Farm offers a broad range of coverage options and a network of local agents to assist you.
Truck Insurance Cost: FAQ
Frequently asked questions about truck insurance costs:
Are trucks more expensive to insure?
Yes, larger trucks pose higher risks and can cause greater damage, resulting in higher premiums.
Why are trucks more costly to insure?
Due to their size and repair costs, trucks are riskier to insure and may carry valuable cargo that needs insurance during transit.
What does the insurance company charge?
Insurance companies charge premiums, which can be paid annually, semi-annually, or monthly, to keep your policy active.
Our Methodology:
To provide accurate information, we developed a rating system based on extensive data collection across various insurers.
The factors considered include:
- Coverage Options (30%)
- Cost and Discounts (25%)
- Industry Reputation (20%)
- Customer Experience (15%)
- Availability (10%)
*Data is accurate as of the publication date.
