Commercial Trailer Insurance: The Ultimate Guide

There are several types of commercial trailers, which can also be called an auto hauler, dry freight trailer, flatbed trailer, or utility trailer.

But you’ll want to get fully insured to protect your trailer and investment. Of course, you also don’t want to spend too much on it.

What’s the best insurance for trailers?

Here’s everything you need to know about commercial trailer insurance.

If you have questions or want to check the current prices, you can contact us today and get all the information you need fast and free!

Do Trailers Need To Be Insured?

Most states require businesses to insure all vehicles and resources used commercially.

You may be wondering: Do I need insurance for a trailer? Some of the states that require commercial semi trailer insurance are Texas, Virginia, and Florida.

While the requirements may differ in each state, it is generally a good idea to insure your trailer for business purposes.

What Does Business Trailer Insurance Cover?

Dry freight trailer insurance covers a lot of things. It can be a semi-trailer, a box truck, or a smaller commercial vehicle, but they all require insurance and will typically cover the following:

Liability Coverage

When you are at fault during an accident on the road, it pays for damages to the other person involved.

Comprehensive Coverage

It pays for damages on your business premises and not on the road. For example, damages caused by fires, vandalism, theft, etc.

Collision Coverage

It pays for damages caused because of a collision. It covers your trailer and not the other vehicle.

Cargo Coverage

It pays for damages caused to your goods, merchandise, or any type of cargo you may be hauling while on the road. Note that there might be some exceptions, such as tobacco, liquor, and jewelry.

Debris Removal Coverage

It is a type of cargo insurance that pays for removing debris or goods materials that may have been strewn on the highway because of an accident.

Loading/Unloading Coverage

Another type of cargo insurance pays for damages to the cargo that may have occurred during loading or unloading.

Earned Freight Coverage

It pays for any loss of income you might have otherwise earned if your goods/cargo were not damaged, lost, or stolen. It acts as compensation for the shipment you would have otherwise successfully delivered.

Combined Deductible

This means that you would have to pay only a single combined deductible for all your liabilities after an accident instead of paying for them individually.

What Doesn’t Commercial Trailer Insurance Cover?

Commercial trailer insurance has broad coverage, but some things aren’t covered, including:

Intended or expected property damage or injuries
Injuries that fall under workers’ comp insurance
Hired and non-owned vehicles

How Does Commercial Trailer Insurance Work?

If you have commercial ultility trailer insurance and your trailer is damaged or stolen, you can file a claim to recover some or all of your loss.

For example, if you paid $10,000 for a trailer and bought a replacement value collision coverage with a $500 deductible if your trailer gets destroyed, your insurance will pay for a new one after you pay a $500 deductible.

Do You Need Extra Insurance to Tow a Trailer?

While you’re not legally required to insure a trailer, it’s always a good idea to consider getting an additional level of coverage to protect it against damage or theft.

How Much Does Commercial Trailer Insurance Cost?

Commercial trailer insurance costs can vary according to the state of operation and the type of goods hauled, which determines the trailer used, the trailer’s hauling capacity or weight, and the travel distance.

Regular dry trailer insurance can cost anywhere between $250-$1000 per month.

Within that range, how much your insurance costs will depend on:

Driving History: A clean driving record will mean lower risks for the company and hence, lower premiums.
Driving Experience: It is more likely that an experienced driver with a commercial driving license can have a clean driving history than a 21-year-old without much commercial driving experience.
Area of Operation or Distance Covered: Greater distance can sometimes mean higher premiums.
The Limits of Your Policy: If you want to buy insurance with high coverage limits, your premium amount will also be more expensive.
Deductibles: If you can afford them, then opting for higher deductibles will lower the premium.
Your Payment Plan: It is generally observed that paying your premium amount upfront once a year instead of paying every month can help you save almost 10%-20%.
Your Insurance Company: At the end of the day, the cost of your insurance policy is determined by one of the several insurance companies. The cost can vary depending on whether the company is small or big, new or old.

Additionally, whether or not it is required, it makes good sense to buy property coverage for your commercial trailer to repair or replace parts in case of an accident. You would, especially, want to cover property insurance on your trailer if it has significant value or if you still owe money on it via installments. Else, you may have to pay expenses out of your pocket should any damages occur.

There are several ways to get cheaper commercial insurance for a trailer, including:

Hire drivers with a clean record
Map out trucking routes
Use newer trucks
Consider a higher deductible

What Do I Need to Prepare for Commercial Trailer Insurance?

Here’s a simple checklist that shows all the documents you need to get commercial trailer insurance:

Do Commercial Trailers Need Insurance?

Commercial trailers need insurance to stay safe and compatible in the market. A commercial trailer has a few responsibilities when carrying something through public paths. Therefore, it must get coverage from many aspects.

Commercial trailer insurance will generally offer liability coverage, collision coverage, cargo coverage, earned freight coverage, debris removal coverage, and comprehensive coverage.

There is also a combined deductible, making it easy for customers to pay their liabilities after an unfortunate event. Depending on a few factors like driving history, experience, policy limits, and the insurance company, commercial trailer insurance may cost you various amounts. However, selectively picking what you deal with can make these insurance packages more cost-effective.

Read also: Trailer Interchange Insurance

How to Lower Commercial Trailer Insurance Cost

There are a number of approaches to reduce the price of your trailer insurance policy:

Shop Around

The last thing you want is to pay a lot for a policy that doesn’t provide adequate coverage. Take quotes from at least three different companies and compare them. Make sure that the quotes you consider offer competitive rates and affordable premiums.

Ask for Discounts

Some insurance companies offer discounts to customers who buy more than one type of insurance policy. So if you already have auto insurance, you would probably qualify for a discount when buying additional commercial trailer insurance.

Types of Trailers We Insure

Auto hauler trailer
Dry freight trailer
Flatbed trailer
Utility trailer
Concession trailer
Bulk commodity trailer
Concession trailer
Pole trailer
Tank trailer

Should Trailers Be Insured?

It is recommended to insure your trailer because not having commercial trailer insurance also means risking a lot more compared to the cost of a trailer insurance policy.

Are Trailers Covered Under Commercial Auto Insurance?

Trailers that are used for business purposes must be covered by commercial auto insurance. A trailer that is used for commercial purposes cannot be coverer with a personal auto insurance policy.

Confused about commercial trailer insurance, or need some help getting a quote? Call us or fill out a quote request form and get all the information you need fast and for free!

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Commercial Trailer Insurance