To better answer this common question, we took a look at our new truck rental policies sold beginning in 2020 and divided them into two groups:
- for-hire transportation: truckers who transport goods such as general cargo and automobiles
- rental specialty: truckers who specialize in a specific niche, such as garbage, septage, or logging
- cdl discount: You will receive a discount just for having a valid CDL for at least two years. how easy is that?
- business experience discount: You are eligible for this discount if you have been in business for three years or more.
- paid-in-full discount: Most customers can save up to 15% by paying their policy in full**. That’s a savings of $1,500 on a $10,000 policy!
Our national average monthly cost for commercial truck insurance ranged from $640 for specialty truckers to $982 for haul truckers. remember, these are just averages. Insurance companies use many qualifying factors to calculate your rate, and each can have a big influence on your premium.
Reading: How much commercial truck insurance cost
For example, our calculations only include new policies that have current physical damage and primary liability coverage, and clean driving records for all drivers. you can expect your rate to vary if you have different coverage requirements.
We recommend that you start a personalized quote online or call us directly to speak with a licensed professional.
Seven major qualifying factors that can influence the cost of your truck insurance:
1. usdot authority
Leasing from a company is much cheaper than operating under your own authority because leasing companies generally cover their drivers’ primary liability exposure while their drivers are under dispatch. These drivers often need to have non-truck or truck coverage to fill in the gaps, but it is less expensive than primary liability.
also, your usdot operating history may be a factor if you are working under your own authority. any violation could put you at risk of receiving a higher rate.
2. contractual requirements
The fmcsa generally requires a minimum liability limit of $750,000 csl or $1,000,000 csl for truckers who need a federal filing. this is much higher than most state minimum limits, meaning those drivers can expect to pay more.
Certain contracts require you to have additional coverages, such as motor truck cargo, physical damage, or trailer swapping, which will also increase your truck insurance rate.
Commercial truck insurance costs are greatly affected by the type of cargo you carry. Some loads are riskier to transport than others. for example, an accident involving a truck hauling heavy farm equipment will likely cause more injuries or damage than a truck hauling fresh produce.
See also: How Much Car Insurance Do I Need? – ValuePenguin
When obtaining a quote, it is very important to accurately and completely disclose the types of cargo you will be transporting to minimize the risk of a claim being denied.
4. operating radius
Truckers with a large radius of operation are generally exposed to greater risks due to longer driving times between stops and more, and potentially less familiar, route options. a semi-truck driver who travels regionally will generally pay more than a driver whose routes are local.
5. vehicle type
A heavy semi-trailer generally warrants a higher commercial truck insurance cost than a lighter pickup truck hauling the same type of product due to its potential to cause more damage in an accident.
It’s also typical for newer vehicles to get a higher rating because they are more expensive to repair or replace than older vehicles.
6. driving history
Accidents and violations have a greater impact on a commercial truck policy than on your typical auto policy because large, heavy vehicles carrying bulk cargo can cause much more damage. a minor speeding ticket on a trucker’s driving record could cause a drastic increase in the cost of their insurance.
Keeping your driving record free of accidents and violations could save you hundreds or, in some cases, thousands of dollars on a truck policy.
Commercial truck insurance rates vary by state. you can expect to pay more just because it operates in states with higher rates.
Is there cheap insurance for commercial trucks?
The meaning of ‘cheap’ is relative, but few truckers would describe their truck insurance as cheap; they wouldn’t even want road transport is their livelihood. what they typically look for is ‘best value’, which is a combination of competitive prices, personalized coverage and top-notch service.
Here are some things to help you get the best value for your truck insurance:
adjust your toppings
more coverage equals more protection, but it’s not always within the budget. Fortunately, you can adjust your coverages to help save on the cost of your truck insurance.
See also: How to buy back a totaled car from insurance
For example, physical damage coverage is often required for trucks with an outstanding loan or lease. To lower your total cost, you could simply increase your deductibles, say, from $500 to $1,000. just remember that you will have to pay more out of pocket if you have a claim.
Also remember that less coverage means less protection. make sure you’re happy with the coverage you choose before you start your policy.
factor monthly payments
Don’t be surprised by the annual cost. For example, a commercial truck insurance quote costing $11,300 per year may seem difficult to manage, but breaking it down into monthly payments, roughly $942 per month, makes it less intimidating and easier to budget for.
Some companies, like Progressive, offer very significant discounts to customers who pay in full. But each insurance company has unique billing options, so be sure to ask what options you qualify for when you get your truck quote.
ask for discounts
discounts† are one of the easiest ways to help you get the best value on commercial truck insurance. Some of our favorite trucker-for-hire discounts include:
let us help!
As America’s #1 trucking insurer*, we offer competitive rates and multiple ways to save to create more affordable commercial truck insurance options for our customers.
Our authorized commercial agents will prepare a personalized quote to help you meet your commercial and truck insurance needs. They’ll work within your budget and look at pricing and discount options to maximize your savings.
†Discounts vary and may not be available in all states and situations.
*no. 1 truck insurer according to 2019 national written premium data from snl financial. The truck is classified as all special vehicles for hire (fhs), all transport vehicles for hire (fht) and all vehicles with a gross vehicle weight (gvw) greater than 16k for trailer, contractors and commercial cars.
**discount is lower in wa and va and excludes six month policies in fl. discount not offered in ca and hi.
See also: The Best (& Cheapest) Motorcycle Insurance in California | MoneyGeek.com