Truckers face unique risks on the road, from accidents to cargo theft, and having the right insurance can mean the difference between financial ruin and peace of mind.
But how much does trucking insurance cost?
It depends on various factors, including the type of coverage you need, the size and value of your fleet, and your safety record.
Whether you’re a small owner-operator or a large trucking company, understanding the cost of insurance is a crucial part of managing your business.
Factors That Affect the Cost of Trucking Insurance
Several factors can impact the cost of trucking insurance. One of the most important is the type of coverage you need.
Coverage has different costs; the more you need, the higher your premiums will be. For example, liability coverage is typically less expensive than comprehensive coverage, which covers damage to your vehicle.
Another factor that can impact the cost of trucking insurance is the size and value of your fleet. Generally speaking, the more trucks you have, the higher your premiums will be because the more trucks you have on the road, the greater the risk for accidents and other incidents.
Your safety record is also an important factor that can impact the cost of trucking insurance.
If you have a poor safety record, with a history of accidents or traffic violations, your premiums will be higher than if you have a clean record.
Unfortunately, insurance companies view drivers with poor safety records as having higher risks.
Types of Trucking Insurance
Liability insurance is the most basic type of trucking insurance and is required by law in most states.
It covers damages or injuries you may cause to other drivers or their property in an accident. Liability insurance typically has limits, and you may need to purchase additional coverage if your liability limits are insufficient.
Cargo insurance covers the value of the cargo you are transporting. This type of insurance is for trucking companies that transport high-value goods, such as electronics or jewelry.
Cargo insurance can also cover losses due to theft or damage during transit.
Physical Damage Insurance
Physical damage insurance covers damage to your truck in an accident or other incident, such as theft or vandalism. It’s not required by law, but it is typically required by lenders or leasing companies if you are financing your truck.
Bobtail insurance covers liability when driving your truck without a trailer attached. This type of insurance is for owner-operators who may drive their trucks without a trailer in between jobs.
Average Cost of Trucking Insurance
The cost of trucking insurance can vary widely depending on your business and the types of coverage you need.
The average cost of trucking insurance ranges from $9,000 to $12,000 per year per truck. However, this is just an estimate, and your actual costs may be higher or lower depending on your specific circumstances.
Liability insurance is typically the least expensive type of trucking insurance, with an average cost of around $5,000 to $7,000 per year per truck.
Cargo and physical damage insurance are typically more expensive, with an average cost of around $1,000 to $2,000 per year per $100,000 in cargo value.
Bobtail insurance is typically the least expensive type of insurance, with an average cost of around $1,000 to $1,500 per year per truck.
How to Save Money on Trucking Insurance
While the cost of trucking insurance can be significant, there are several ways to save money on your premiums.
- One of the most effective is to improve your safety record. By improving your driving skills and reducing accidents and traffic violations, you can demonstrate to insurance companies that you are a lower-risk client and qualify for lower premiums.
- Another way to save money on trucking insurance is to shop around and compare quotes from multiple insurance companies. Different insurers may offer different rates for the same coverage, so getting quotes from several providers is essential before deciding.
- You can also save money on trucking insurance by increasing your deductibles.
By choosing a higher deductible, you can lower your premiums, although you will be responsible for more of the costs in the event of an accident.
Top Trucking Insurance Companies
There are many trucking insurance companies, and knowing which one is right for you can be difficult. Some of the top trucking insurance companies include:
Progressive is one of the largest trucking insurance providers in the United States. They offer a wide range of coverage options, including liability, cargo, physical damage, and bobtail insurance.
Nationwide is another popular trucking insurance provider, offering a range of coverage options for owner-operators and larger fleets. They offer discounts for safe drivers and have a reputation for excellent customer service.
Travelers is a well-known insurance company that offers a range of coverage options for the trucking industry.
They offer liability, cargo, physical damage, bobtail insurance, and specialized coverage for niche industries such as hazardous materials transport.
Getting a Trucking Insurance Quote
You can get quotes from individual insurance companies or work with an independent insurance broker who can provide quotes from multiple companies.
Common Misconceptions About Trucking Insurance Cost
- All insurance companies charge the same rates for the same coverage: In reality, rates can vary widely depending on the insurer and your specific circumstances.
- Insurance companies only look at your safety record when determining your premiums: While safety record is an important factor, insurance companies also consider other factors such as the age and value of your trucks, the types of cargo you transport, and your location.
Importance of Having Adequate Trucking Insurance Coverage
Somebody could hold you responsible for damages or injuries in an accident or other incident without the proper coverage. This could lead to financial ruin and the loss of your business.
Investing in the right trucking insurance coverage can protect your business and your livelihood.
With the right coverage, you can have peace of mind knowing that you’re covered in the event of an accident or other incident.
Safety Always Comes First
By understanding the factors that impact the cost of trucking insurance and taking steps to save money on your premiums, you can ensure that you have the coverage you need at a price that works for your business. At Canal Cartage, we take safety seriously and love supporting our owner-operators with great information. Feel free to call with more questions.