Semitruck Insurance: Providers, Coverage & Costs

The National Highway Traffic Safety Administration (NHTSA) estimates that there are approximately 4,000 fatal crashes involving large trucks each year. With the average cost of a truck-related fatality at $2 million, understanding how to mitigate these high costs will be crucial for ensuring this catastrophe does not continue.

Semitruck insurance, commonly known as owner-operator insurance or commercial truck insurance, refers to a group of products for truck drivers. Many of these insurance cover truckers’ legal obligations in a variety of scenarios, including transporting goods and driving for pleasure. Truck insurance costs between $8,000 and $12,500 per year for owner-operators.

Whatever business truck insurance plans you need, you should deal with a firm that is familiar with your risks and industry requirements. Commercial Advancement, as a leading insurer, will assist you in finding inexpensive insurance that meets your individual requirements.

Top Insurance Companies for Semitrucks

Progressive Commercial

Progressive Commercial is the best option for owner-operators looking for additional savings on top of their already affordable rates. It provides a lengthy number of discounts to its truck insurance clients, including discounts for having had a commercial driver’s license (CDL) for two years, being in business for three years, and paying in full at the start of a policy. Progressive Commercial has lots of expertise offering truckers the timely, inexpensive coverage they need as the business branch of the nation’s third-largest commercial vehicle insurance company.

Lancer Insurance

Long-haul truckers who want to retain all of their critical coverage with one provider should choose Lancer Insurance. It provides a commercial package for owner-operators and fleets of up to ten power units that integrate liability, physical damage, general liability, and cargo coverage into a single bill, renewal date, and claims adjuster. Lancer also keeps policyholders informed about legislative changes and best practices, as well as provides onsite safety checks to assist with driver training and loss prevention.

Commercialinsurance.net

Commercialinsurance.net is a good option for truckers who have been turned down by other insurers. Commercialinsurance.net works with over 200 insurance carriers, agencies, and brokerages as a referral service, many of which can cover difficult-to-insure firms. Truckers who utilize this service also get assistance from a business representative in comparing bids and coverage, who then connect you directly to an agent who can make your transaction. Most truckers see the carriers’ lowest pricing on their semitruck insurance policy since Commercialinsurance.net works with so many carriers and brokers.

CoverWallet

CoverWallet can help tow truck drivers get low-cost commercial truck insurance. CoverWallet may quote numerous carriers at once since it is an insurance brokerage, including CNA, Liberty Mutual, and Chubb. This improves your chances of finding all of the coverage you need at a reasonable cost. The monthly cost of a plan that includes premises liability, non-trucking liability, and physical damage coverages starts at $500. You may add bailee’s coverage, motor truck cargo, and an installation floater for an extra $100 per month.

HUB International

For truckers with routes all across the United States and Canada, HUB International is the ideal option. HUB may not only cover your company, but it also provides member perks like a 24-hour roadside assistance service. Truckers may obtain coverage for tows, tire changes, replacement components, and more for only $399 per year. HUB International is a large worldwide property and liability insurer with a staff of transportation professionals. Owner-operators, motor carriers, and towing companies of various sizes may choose from a variety of insurance.

Pro tip: Because new businesses are frequently unable to pay truck insurance due to the increased risk they pose to insurers, owner-operators may need to depend on risk retention groups (RRGs) for coverage. Unfortunately, RRGs often provide assessable plans, which enable the insurer to add a surcharge to the premium that the insured is legally obligated to pay. When new owner-operators limit their travel radius to 500 or 600 miles, they may discover additional coverage alternatives and lower prices.

Truck Insurance Types

Commercial truck drivers need a variety of commercial truck insurance coverages; however, the coverage you require is mostly determined by your position as an owner-operator. There are two categories of owner-operators: those who are leased to a motor carrier and those who operate on their own power. When an owner-operator has a long-term lease with a motor carrier, the motor carrier frequently covers the portion of the owner-insurance operator’s obligations.

Insurance for General Liability

In the trucking industry, general liability insurance, often known as public liability insurance, covers third-party physical injury and property damage that are common to most enterprises but not linked to truck transportation. General liability, for example, covers injuries a customer suffers if he falls in your garage but not if you run him over with your truck.

Public liability insurance is needed by law for owner-operators with authority, freight forwarders, and motor carriers. However, since it covers a variety of typical company hazards, the coverage is an excellent option for any business owner. Most lease drivers are insured by the motor carrier’s policy, so they don’t require general liability insurance.

Liability Insurance for Trucking

Trucking liability insurance, commonly known as main liability insurance, covers injuries and property damage caused by your truck. Interstate truckers hauling non-hazardous commodities must have a minimum of $750,000 in truck liability insurance, according to federal regulations. Intrastate truckers are required by state law to carry the bare minimum.

The majority of trucking liability plans demand that each truck be scheduled or named on the policy. If the vehicle is not scheduled, insurance companies will not pay claims.

Liability Insurance for Non-Trucking Vehicles

Non trucking liability insurance protects third-party losses and injuries that occur when you’re driving your truck for non-business objectives, such as conducting personal errands. Non trucking responsibility pays for the other person’s medical expenses and property damages if you have a truck accident while not working.

This insurance is mostly for drivers who are leasing a vehicle from a motor carrier. Even while they are usually protected by their motor carrier’s general liability insurance, such coverage is limited to commercial operations like moving freight, dead-heading, and maintenance trips. Non trucking liability insurance is still required for nonbusiness driving.

Insurance for Bobtails

Bobtail insurance protects you and your semitruck while you’re driving for business but not transporting cargo, such as when you’re commuting between jobs. If someone sues you after an accident, the coverage will cover your legal expenses. Bobtail insurance is often required of leased drivers by motor carriers.

Accidents that may need bobtail insurance include the following:

You’re on your way to getting your first load.
When you’ve dropped off one load and are on your way to get the next.
After delivery, you’re on your way home.

Non trucking liability coverage is sometimes mistaken with bobtail insurance. Both fill up the gaps in the liability insurance that most motor carriers give. Bobtail insurance, on the other hand, is for business-related driving, whilst non-trucking insurance is for personal driving.

Insurance for Physical Damage

Accidents, natural catastrophes, theft, and vandalism are all covered dangers for physical damage insurance, which pays for damages and repairs to your vehicle. It is not needed by law, but it is strongly recommended for all drivers. Furthermore, most lenders need physical damage insurance as a condition of credit.

There are two types of physical damage insurance:

Collision: Covers damage to your truck caused by a collision with another vehicle.
Damage caused by most other risks, such as theft, hail, vandalism, and fire, is covered.

Physical damage insurance is required for all owner-operators, including leased drivers, to safeguard their investment in their vehicles. The liability insurance of most motor carriers extends to drivers, although it does not cover physical damage to the driver’s truck.

Cargo Insurance for Trucks

Goods insurance for trucks protects your obligation for the cargo you transport, usually paying up if it is lost or damaged. Although it is not required by law, it is highly recommended for both owner-operators and for-hire motor carriers.

The following are some of the most common reasons for motor truck cargo insurance:

Fire
Collision
Theft
Damage caused by water
Breakdown of equipment
The act of striking a load

Insurance for Workers’ Compensation

Workers’ compensation insurance is a state-mandated policy that covers medical expenses and missed income for workers who are injured or sick at work. Workers’ compensation is typically required only for motor carriers and owner-operators with employees, although certain states may mandate coverage for company owners in high-risk sectors.

Workers’ compensation usually covers the following injuries, depending on state law:

After a truck collision, traumatic injuries might occur.
Loading and unloading freight causes repetitive stress injuries.
Illnesses caused by exposure to hazardous substances at work

The insurance you need is mostly determined by your position as an owner-operator. All of these semitruck insurance coverage are often required by owner-operators operating under their own authority. Leased truck drivers should review their contracts to see what insurance they need.

Additional Insurance Coverages for Semi trucks

There are various extra coverages you may wish to add to your policy for your individual circumstances in addition to the core insurance for owner-operator truck drivers. Some of these coverages are available as riders to your main plans, while others must be acquired independently.

Endorsement for Trailer Interchange

The physical damage you inflict to another person’s trailer is covered by trailer exchange insurance. It is critical for truckers and motor carriers that engage in trailer interchange agreements on a regular basis. This endorsement is often added to a liability policy to cover damage from fire, theft, explosion, accident, or vandalism.

Insurance for Hazmat Trucks

Although hazmat truck insurance isn’t typically a distinct policy or endorsement, it’s important to remember that transporting hazardous goods is carefully regulated. For every trucker moving hazardous products such as fuels, chemicals, or fertilizers, federal legislation doubles the necessary minimum liability coverage to $1 million.

Cargo Insurance for Livestock

Live animal transportation comes with its own set of concerns, including the potential that your cargo may be injured, escape confinement, or die upon the route. These hazards are often excluded from conventional truck insurance plans, necessitating the purchase of a separate livestock cargo coverage for drivers transporting livestock. Dead and wounded cattle, as well as corpse disposal, are usually covered by insurance policies.

Umbrella Insurance for Trucking

Because of the amount of damage a semitruck can inflict, claims often exceed your truck liability limits, making trucking umbrella insurance a worthwhile investment. This insurance, like other business umbrella plans, expands the coverage of underlying liability policies. If a claim costs more than your other insurance, umbrella liability will cover the difference.

Coverage for the Uninsured and Underinsured

Uninsured and underinsured motorist coverage pays for your expenses if you’re in a collision with a driver who is either uninsured or has limits that aren’t high enough to cover your losses. It’s also the cheapest coverage, but it’s definitely worth the money if you ever need it.

Commercial Truck Insurance Requirements

Filing Requirements for Insurance

Truckers seeking specific permissions, such as motor carriers, brokerages, and freight forwarders, must file with the FMCSA to show that they have the necessary insurance. For interstate trucking, moving hazardous products, for-hire trucking, and for-hire person transport, federal filings are often necessary.

Truckers may be subject to state-specific commercial truck insurance obligations in addition to federal filings. When you drive an overweight vehicle, transport an overweight cargo, or possess an enormous truck or trailer, for example, Alabama, Arkansas, Louisiana, Mississippi, and Pennsylvania all need certificates of insurance (COI).

Commercial vehicle insurance regulations are complicated, so working with a provider like Progressive Commercial that can assist you with federal and state filings makes sense.

Costs of Semitruck Insurance

Because truckers may need a variety of coverages, the typical cost of commercial truck insurance varies greatly. The cost of insurance for truck drivers might also vary depending on who owns the truck. Semitruck insurance costs between $1,500 and $2,000 per year for leased owner-operators. Each year, owner-operators with authority pay between $8,000 and $12,500.

Factors Affecting Semitruck Insurance Prices

Because insurers consider a variety of criteria when determining rates, semitruck insurance prices might vary significantly. How much your truck insurance costs, like any small business insurance, is determined by how your insurer balances certain elements, such as:

Ownership status: If you’re an owner-operator on a long-term lease, your public liability insurance is usually covered by the motor carrier, which lowers your total insurance expenses. Owner-operators, on the other hand, who have their own power, are responsible for their general responsibility.
Type of cargo: When moving hay, the risks, and hence the premiums, are often far lower than when hauling a hazardous substance like gasoline.
Freight weight: Higher premiums are frequently associated with heavier cargoes.
Driving distance: The longer you drive, the higher your chance of an accident, which affects your insurance price.
Physical damage rates are calculated as a proportion of the truck’s worth, therefore more valuable vehicles are more expensive to insure.
Physical damage coverage: Insuring for the actual cash value (ACM) of your vehicle will result in a higher premium, but the stated amount covered will be based on your estimated value. This choice is usually less expensive.
Credit score and history: Insurers look at your credit score and history to see whether you’re a good risk. They see a low credit record as a sign that you could be a financial risk and alter your rate accordingly.
Experience with a commercial driver’s license (CDL): The more experience you have after getting your CDL, the less risk you offer to an insurance company. Low premiums are usually a reflection of this.
Deductible amount: Lower premiums are associated with higher deductibles. You may choose to boost your deductible if you can afford to pay more out of pocket on a claim.
Policy limits are the maximum amounts that the insurer will pay out in the event of a claim. Because the insurance provider wants to cover the possible expense, choosing high limits results in higher rates.

Conclusion

Getting the best semitruck insurance for your company necessitates a focus on value rather than price. The lowest insurance coverage isn’t always the best. Furthermore, if you’re traveling on your own authority, having insufficient insurance coverage might affect your company by preventing you from securing employment with freight brokers. Owner-operators who need adequate coverage should consult with a truck insurance specialist.