One of the requirements for employment that includes operating a truck and transferring freight is trucking insurance. For everyone who drives a truck, it is essential. When traveling, all truck drivers should have access to this insurance to safeguard themselves from unanticipated occurrences like theft and natural disasters. Additionally, it ensures the safety of the driver, load, and cargo of the vehicle.
There are many different kinds of trucking insurance, so be sure to compare your alternatives and pick the one that’s right for you before you confirm that you are getting the right guarantee. Some of the information that you might need to make wise judgments has been gathered by us. Our in-depth information should enable you to significantly improve your trucking experience.
What is Commercial Truck Insurance?
Commercial truck insurance refers to a variety of motor insurance policies for independent truck drivers, businesses that use trucks, and trucking firms. Contrary to commercial auto insurance, trucker insurance protects massive vehicles used in agriculture, construction, and shipping.
Cargo, average kilometers, truck size, and vehicle type are all taken into account by insurance coverage. There are several companies and policies to choose from.
The majority of trucking companies are legally required to carry liability insurance for commercial trucks. Although your monthly premium may be higher, adding protection against damage, theft, and maintenance could help your business save money.
There are three types of organizations that purchase commercial truck insurance:
#1. Motor Carriers:
Trucking firms that operate for hire and have a fleet of vehicles. Fleet insurance is the responsibility of these businesses.
#2. Owner-Operators:
Individuals who own and run their own trucking company The owner-operator of the truck is typically a private individual. Additionally, the owner-operator may occasionally rent the vehicle from a motor carrier.
#3. Private Carriers:
These are people who transport things for their employer using their own vehicles. Private carriers could get paid by their company or buy their own insurance.
How does Commercial Truck Insurance work?
The insurance policy is typically purchased and paid for by the trucking company. That implies that the cost comes from your overhead for owner-operators.
Furthermore, a fleet of trucks or a single truck can both be insured. The owner of the vehicle and any authorized person who uses the trucks for business activities are typically covered by insurance plans.
Note that when you apply for truck insurance, the provider and you will decide on certain details of your coverage. The following items make up a commercial trucking insurance policy:
#1. Coverage
The term “coverage” indicates which cars, drivers, incidents, damages, and costs the insurance policy covers.
#2. Deductible
Your deductible is the amount you must pay out-of-pocket for injuries sustained before the insurance policy goes into effect. Generally speaking, a greater deductible decreases expenditures, while a lower deductible raises them.
#3. Policy Limit
An insurance company’s predetermined maximum payment for a claim is known as the policy limit.
This is the monthly payment you make to keep the insurance in effect. Your deductible, policy limit, and total coverage all affect how much your monthly premium will be.
The monthly premium is paid by the policyholder. The coverage is described in the policy agreement, along with the vehicle(s), driver(s), and what constitutes a covered incident.
Furthermore, most policies require that covered incidents involve a covered driver operating a covered vehicle while doing so for pay. The policyholder submits a claim to the insurance provider in the event of an incident.
What’s covered under Commercial Truck Insurance policies?
Your policy and liability coverage determine the specific coverage. Let’s go over the policies that are offered.
#1. Primary Liability
Similar to other drivers, commercial truck drivers are required to have insurance to protect those who may be hurt or have their property destroyed in the event of an accident or driver negligence. The bare minimum for any commercial trucking insurance policy is primary liability protection.
The insurance provider will pay up to the policy limit in damages in the event of a covered incident where the motorist caused property or bodily harm. It will cover any required maintenance or medical costs.
However, neither the driver nor any truck damage is covered by these plans. For this reason, a lot of trucking companies choose increased coverage.
#2. Physical Damage
The cost of damages to the policyholder’s car is covered by the physical damage policy add-on. This policy covers non-accident damages like vandalism and theft in addition to collision and comprehensive coverage.
#3. Uninsured/Underinsured Motorists
An uninsured driver may cause an accident involving your truck. The person who caused the collision in this instance lacks the liability insurance to cover the cost of repairing your truck. Your insurance provider will cover the repairs required to get you back on the road and earn money if you have an uninsured or underinsured motorist policy. To collect its coverage costs, the insurance company may insist that you file a lawsuit against the uninsured driver.
#4. Medical Payments
A medical payments policy will cover any medical costs for the driver or any passengers who are hurt in the car, while primary liability insurance will pay for the medical bills of the other party.
#5. Motor Truck Cargo Coverage
For particular truck drivers, this coverage is provided to cover the expense of freight. It safeguards goods against accidents like collisions and fires. It is required by law for truck drivers to carry cargo on transit insurance. When the cargo is loaded until it is signed for at the destination, the policy is in effect.
#6. General Liability
Injuries or property damage sustained while not operating the truck are covered by general responsibility. This regulation restricts drivers to a 500-mile range.
#7. Non-Trucking Liability
Owner-operators who have a long-term lease with a motor carrier are covered under this coverage. If you use the truck for personal or non-business activities, it covers accidents or property damage. Primary liability protects any claims for accidents that happen while using a vehicle for business.
#8. Rental Reimbursement with Downtime
Purchasing this insurance policy provides truckers with a rental truck or compensation for lost income while their primary truck is unusable following a collision. It helps ensure your trucking company maintains a consistent income should you not be able to drive due to a truck being out of commission.
The amount that the insurance provider will cover for the rental truck depends on the policy limit. The reimbursement will only cover the cost of the rental truck for up to 30 days. Some insurance providers will also assist you in locating a truck rental.
Only a select group of commercial truck types are qualified for downtime and rental reimbursement. The following trucks are eligible:
- Dually pickup trucks
- Flatbed trucks with a gross weight of over 16,000 lbs.
- Refrigerated trucks with a weight of over 16,000 lbs
- Stake trucks with a weight of over 16,000 lbs.
- Tank trucks carrying over 1,400 gallons
- Dump trucks with a weight of over 16,000 lbs.
- Front-loaders with a weight of over 45,000 lbs.
- Roll-on vehicles with a weight of over 45,000 lbs.
- Straight trucks with a weight of over 16,000 lbs.
- Tractors.
#9. Tractor Interchange
A “trailer interchange agreement” allows semi-trucks or tractors to occasionally transport trailers that belong to another business. This agreement enables one driver to finish a package for a separate business.
Damages are often the responsibility of the driver towing the trailer, although these agreements are not covered by the basic coverage policy. Therefore, to cover any damage to the trailer or the goods, truckers must have additional insurance. Note that Virginia does not offer these policies.
Best Commercial Truck Insurance
Your specific needs and financial situation will determine where to get the finest commercial truck insurance provider. Here is our ranking of the best insurance providers to get you started.
#1. Progressive Commercial Truck Insurance
One of the most well-known commercial insurance providers in the nation is Progressive. Additionally, it dominates the commercial insurance sector as a whole.
Progressive provides several commercial insurance options tailored specifically for the trucking sector, in addition to the core coverage choice that is legally needed. In all 50 states, it covers private carriers, owner-operators, and motor carriers.
Progressive truck insurance policies include:
- motor truck cargo,
- general liability,
- non-trucking liability,
- rental reimbursement with downtime,
- on-hook towing, and
- trailer interchange.
Progressive is a one-stop shop for all of your needs relating to business auto insurance thanks to the available policies.
#2. Berkshire Hathaway
Berkshire Hathaway owns three insurance firms that might be useful to commercial truck drivers. The company’s Geico brand is well known for its affordable consumer auto insurance, but it also provides a few small business insurance options.
Additionally, the business owns Biberk, which debuted in 2015. This subsidiary offers small enterprises specialized insurance.
Furthermore, the business is also responsible for THREE, a project that tries to make the insurance process simpler for small businesses. The business provides a short, three-page policy that addresses all business requirements.
#3. State Farm
State Farm policies for commercial trucking insurance provide the standard primary coverage, general coverage, non-trucking liability, etc. Under its inland marine plans, customers can also acquire motor truck freight and transportation coverage. In addition, State Farm provides unusual coverage, like rideshare insurance.
The absence of an online quote tool by the business is its lone flaw. You must set up a policy and request a quote from your neighborhood agent. However, State Farm provides a useful online claim tool once you have coverage.
#4. OOIDA
The Owner-Operator Independent Drivers Association (OOIDA) is a global trade group that supports truckers and trucking regulations. Additionally, it offers personalized insurance plans.
To obtain insurance coverage, you must join the group, although membership is only $45 a year. The expense can be justified if it enables you to obtain insurance coverage from a company that is familiar with the ins and outs of the trucking business.
Medical and dental insurance is available to OOIDA members as well. This is a great way to provide your truck diving personnel with insurance.
Note that:
- Primary liability,
- general liability,
- unladen liability,
- passenger accident, and
- physical damage coverage is included in the policies.
The trade association also promotes ethical business practices and trucker safety on the road.
#5. Hartford
Hartford provides coverage for on-hook towing, livestock transportation, property in transit, motor truck cargo, trailer interchange, and more, in addition to the usual commercial truck policies. You can alter your insurance to incorporate particular coverage for your line of work or industry.
Furthermore, the business provides a handy online tool so you can secure your assets the same day and receive a price in a matter of minutes. among over a million small company clients, Hartford has a great reputation among its clientele.
#6. Nationwide
One of the nation’s first car insurance companies was established by Nationwide in 1926. It provides insurance plans in all 50 states, as implied by the name.
The major flaw with Nationwide is that it doesn’t cover tractors or semi-trucks. For other commercial trucks, it does provide policies with extensive coverage.
Farm truck insurance is also a separate coverage offered by Nationwide. Although the reviews are generally positive, they are a little lower than those of other commercial truck insurance companies.
#7. National Independent Truckers Insurance Company
The National Independent Truckers Insurance Company (NITIC) offers the broadest selection of commercial auto insurance coverage available. Most truck types are covered by NITIC, which also provides affordable rates with customization possibilities and a number of reduced rates.
The company’s online quote tool is one of its main advantages. You can request a quote for your needs and see example quotes.
NITIC is well known for its customer service and has received many positive client ratings. Additionally, since it only functions with transportation insurance, it provides a more specialized approach.
#8. Sentry
Founded in 1904, Sentry offers specialized insurance policies for cyber liability and liability not related to trucks. The latter shields businesses and corporate assets against cyberattacks.
Sentry has excellent customer feedback and insurance brokers who specialize in commercial trucks. The absence of an online quote request form is the sole downside. To acquire a price, you must speak with an agent.
The Best Commercial Truck Insurance for New Drivers
#1. InsurA:
InsurA provides specialized trucking insurance coverage for any kind of commercial trucking scenario, as well as fundamental coverages including liability, overall accident, and third-party liability that are required for all commercial activities. Additionally, InsurA offers truck-specific coverages for heavy equipment plans, including motor truck general liability coverage, motor truck cargo coverage, and non-trucking liability coverage.
Furthermore, the costs for old and new owner-operators’ insurance vary, but final estimates will be determined by vehicle type, coverage needs, USDOT authority, operating radius, driving record, and cargo.
Note that with the help of a knowledgeable insurance agent, you can talk about your requirements and decide which options are appropriate for your particular sort of commercial trucking operation.
#2. State Farm:
One of the major insurers in the nation, State Farm offers a variety of customer coverage for home, life, and commercial trucking. The safeguards included in its trucking plans, such as liability, accident, bodily injury, and comprehensive coverage, are largely the same as those included in an auto policy. They do, however, not provide coverage for your cargo while having insurance that can cover drivers’ medical expenses in the event of accidents.
#3. Progressive:
Progressive has more than 40 years of experience in the insurance industry and focuses on providing individual owners, owner-operators, and commercial fleet carriers with vehicle coverage. It offers a wide range of coverage options, including trailer interchange, general liability, rental reimbursement, and cargo liability.
If that is insufficient, you can choose from a wide range of commercial transportation products to tailor your coverage to your specific needs. Progressive offers help with filing at both the state and federal levels.
#4. Nationwide:
Nationwide is one of the oldest insurance providers in the nation, offering a wide range of coverages like uninsured or underinsured motorist protection, medical payments coverage, commercial trucking insurance, and collision coverage. Liability for shipment is also covered. Pickup vehicles, box trucks, utility trucks, and agricultural trucks are all insured by Nationwide. However, it lacks insurance for semi-trucks and tractor-trailers. Additionally, it offers discounted rates to newer drivers, businesses, and owners of anti-theft equipment for their own vehicles. Nationwide’s commercial trucking insurance policies are priced individually, as is the case with the majority of insurance companies.
#5. The Hartford
The Hartford provides some excellent options for commercial truck insurance, including CDL coverage for novice and even high-risk drivers. Motor vehicle cargo, property in transit, trailer interchange, and livestock transit are among the insurance policies that are advantageous to owners and operators of commercial trucks. The FleetAhead program, which installs special devices in vehicles and reports statistics on driver performance and safety in real-time, is one noteworthy element of The Hartford.
Commercial Truck Insurance in California
In California, you need a comprehensive insurance strategy in order to safeguard your drivers, trucks, and the goods of your clients. In the event of an accident, Simplex Group wants to make sure your business is fully protected.
They can offer your trucking firm comprehensive commercial auto insurance because they are a full-service California commercial truck insurance supplier.
Commercial Truck Insurance costs
Commercial vehicle insurance premiums vary depending on a variety of variables. Your costs may vary depending on factors like the type of coverage you need, the value of your car, your driving history, the items you transport, and more.
In the following situations, insurance rates are frequently higher:
- Large trucks transporting high-dollar cargo
- Drivers who transport hazardous materials
- Drivers with a history of accidents or traffic violations
- Long-haul trucking
How big is the commercial trucking insurance market?
In 2021, the market for commercial vehicle insurance was worth over USD 110 billion.
What kind of insurance do I need for a trucking company in Texas?
According to Texas law, all trucking businesses need to have evidence of liability insurance for each registered vehicle. They are safeguarded by this sort of insurance in the event that one of their trucks causes injury or property damage.
What is the biggest trucking state?
In 2021, Texas had the highest state-level employment of truck drivers. A preliminary estimation of over 200,000 truck drivers in the state is based on data gathered.
Who has the largest trucking company?
The Top 4 Trucking Companies in 2023, by revenue, are:
| UPS Inc. | 100,300,000 |
| FedEx Corp. | 92,619,000 |
| J.B. Hunt Transport Services | 14,814,000 |
| TFI International | 8,813,000 |
Which trucking company has the most money?
UPS Inc., often known as United Parcel Service, is a multinational shipping, receiving, and supply chain management company with its headquarters in Atlanta, Georgia, in the United States. The American Messenger Company, as UPS was formerly known, specialized in telegraphs.
With more than 500,000 employees, the business has expanded to become a Fortune 500 firm and one of the largest courier services in the world. It should go without saying that this courier service has established itself as a household name in the supply chain sector.
What state has the cheapest commercial truck insurance?
Owner-operators in Mississippi pay the lowest premiums for commercial trucking insurance out of all 50 states.
What is the most lucrative commercial insurance to sell?
Some of the largest commissions in the industry are offered by life insurance. The commissions on health insurance products range from 7 to 22%. Auto insurance generates commissions for salespeople of 10% to 15%. On the other hand, commissions from life insurance are frequently paid out between 100 and 115%.
Are diesel trucks more costly to insure?
The cost of insurance depends on the type of vehicle you buy as well as its worth. Therefore, it will cost more to insure a vehicle with a higher price than one with a lower one. Diesel truck insurance typically costs between 10% and 15% more than gas truck insurance since diesel trucks are more expensive to construct.
What state is the cheapest to start trucking?
Oklahoma. The Sooner State is the trucking haven of America. Low gas prices, large open areas, and few industrial rules are all advantages.
What state is best for truckers?
The best states for truck drivers are:
| State | Average Salary |
| Kentucky | $68,557 |
| Pennsylvania | $68,232 |
| Indiana | $67,338 |
| Delaware | $70,901 |
Which state has the most trucking accidents?
Texas. There are far too many truck accidents nationwide, particularly in Texas. In the Lone Star State, there were 513 deadly trucking collisions in 2020, which led to 581 fatalities and 1,245 serious injuries.
PROGRESSIVE TRUCK INSURANCE: Best Commercial Insurance Providers 2023
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TRUCKING SALARY: 2023 Truck Driver Salary Guide
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