Commercial trucking insurance can be expensive but is vital for trucking businesses. The cost of trucking insurance can vary depending on the provider and insurance policy. Continue reading to learn about the cost of trucking insurance.
Types of Trucking Insurance
Just as auto insurance coverage offers financial protection in case of an accident, trucking insurance protects truck drivers and trucking businesses in different types of cases. The FMCSA (Federal Motors Carrier Safety Administration) requires truck drivers and companies to carry insurance depending on the type and use of their trucks. For example, owners of trucks weighing less than 10,000 pounds are required to carry around $5 million of liability insurance. The following are common types of trucking insurance:
- Physical Damage Coverage: This covers damage to commercial trucks caused by theft, vandalism, natural disasters, and accidents. It also covers the replacement of totaled trucks.
- General Liability: This type of insurance covers damage not directly related to operating the truck. This includes libel or slander lawsuits, bodily injuries in a slip and fall, false advertising claims, or property damage.
- Cargo Insurance: It covers damage or loss of cargo carried by truck.
- Primary Liability: It covers property damage and bodily injuries suffered by a third party in a truck accident when your driver is at fault.
- Bobtail Coverage: Covers damages when the load has been delivered and the truck is not being used for trucking purposes.
What Factors Influence the Cost of Trucking Insurance?
Trucking insurance costs can be high due to the potential risk associated with trucking. Although all insurance costs differ significantly, you can expect to pay around $9,000 to $15,000 per truck annually. However, insurance costs have risen gradually, requiring semi-truck owners to pay as much as $30,000 per truck annually.
Several factors can skew the rates of your insurance. For example, your driver’s record is one factor that can influence your insurance rates. The insurance rates can be lower if they have a clean driving record. However, if there are accidents on your driver’s record, the insurance rates can be higher.
Insurance rates also depend on how much driving experience a trucker has, which means it can be costly for new truckers. The size and cost of the truck are other factors affecting the cost of insurance. Expensive trucks generally have higher insurance premiums. Hauling hazardous cargo often results in more expensive insurance. Other factors influencing trucking insurance rates are the type of insurance company and state and federal requirements.
How to Lower Trucking Insurance Rates?
Trucking insurance offers several benefits; however, dealing with expensive rates can be challenging, but you can do a few things to lower the costs of trucking insurance. For example, you can ensure that you and your truck drivers maintain clean driving records to get discounts on insurance premiums. You can also pay your premium yearly or consider lower limits and higher deductibles to reduce insurance costs. Comparing the rates of several insurance companies can ensure you are getting a good deal. Click here to learn about insurance coverage.
