How Much Does Truck Insurance Cost?

Costs of your semi truck insurance, i.e. owner-operator truck insurance can vary widely. Here, we have a number of factors to consider while understanding the costs and limits of each type of insurance and how best to lower the rates of insurance while still being able to gain maximum benefits in case of damages or liabilities.
 

Types of Semi Truck Insurance

While there are several types of semi truck insurance coverages, what you need as a new business owner will depend on your status of owner operator for the business. If you are an owner-operator with a permanent lease to a motor carrier for your trucks, then some aspects of your insurance will be covered by the motor carrier, reducing your costs for driver’s insurance. On the other hand, if you are an owner-operator under your own authority then you will have to take care of all liabilities for insuring your trucks as well as your drivers. This is relatively more expensive.
The insurance plan you choose for your business will have a number of provisions covered. Understanding what is covered, what isn’t and how frequently you make payments can help you choose the best plan.

Factors on Which Your Semi Truck Insurance Depends

For owner operators who have a permanent lease with a motor carrier, the average cost of semi truck insurance is between $3,000 to $5,000 per year. For owner operators with their own authority, the cost can be much higher — around $9,000 to 12,000 per truck per year.

Prices of semi truck insurance have risen steadily over the years with the cost ranging between $12,000 and $16,000 currently for new authorities. The cost for insurance can depend on a range of factors, other than the owner operator status too. Some of these include:

  • The cost of your truck
  • What type of goods are being hauled
  • The driver’s age and their experience with a commercial driver’s license
  • Distance being driven
  • Your credit history
  • Your payment plan — whether yearly, monthly or per policy period

Every insurance company rates each of these factors differently, offering different insurance packages. Once you understand what type of insurance you need and what coverages it includes, it helps to compare prices from different policy plans and then make your decision.

Average Range of Costs for Different Coverages

On an average, the primary liability coverage costs $5,000-$7,000. Since it is required by all businesses by law, motor carriers cover for this liability. However, under your own authority as an owner operator you have to make sure you purchase this coverage in your plan. Additionally, general liability costs can vary between $500-600.

Physical damage or basic coverage costs range from $1,000-$3,000, including both collision and comprehensive insurance. Occupational accident coverages cost business owners $1,600-$2,200 whereas the cargo insurance really varies according to what type of cargo is being hauled. Bobtail insurance, i.e. insurance for damages when not hauling any cargo and on personal business, costs about $350-$400.

In addition to the above recommended insurance coverages, here are some other liabilities you may want to consider for your business:

  • Trailer Interchange Insurance: Required when you are hauling someone else’s trailer full of goods and the company that owns the trailer does not have insurance to cover their goods.
  • Umbrella Insurance: Costing about $500-$700 umbrella insurance covers for any gaps that may have occurred in your policy.
  • Uninsured/Underinsured Motorist: The least expensive yet very useful type of coverage, it covers for damages caused to you when you are involved in an accident without your fault and the other person is not insured enough to cover your expenses.
  • Hazmat Insurance: If you are hauling hazardous materials such as chemicals, fertilizers or fuels then you will need this type of insurance.
  • Livestock Cargo Insurance: As the name suggests when hauling live animals, in the event of injury, death or escape, this insurance will be useful to you.

How to Lower Your Insurance Rates?

  • Better Driving History

Insurance companies generally want to work with drivers who don’t cost them much money. They will offer cheaper premiums to businesses whose drivers have clean driving records.

  • Bundle Package

It is always a better practise to bundle together all your liabilities in one insurance package rather than buy them separately.

  • Paying Yearly

Trucking companies that pay their insurance in a lump sum once a year, as opposed to paying monthly, reduce their premium overall by almost 10%-20%. With the high cost of semi truck insurance policies, however, this figure can vary.

  • Compare Rates

What you can do is to shop for policy packages from different insurance companies and compare the premiums, deductibles and coverages in each. Companies rate different factors on which your insurance depends differently, and therefore offer their policy packages at different prices.

  • Consider Higher Deductibles

In order to keep your premiums low, you might want to consider higher deductibles and lower limits.

As you can see, there are several ways you can keep your truck insurance low. East Insurance Group offers competitive rates for your insurance needs, so what are you waiting for? Just drop us a line or give us a call and we’ll set you up with just the insurance plan you need!
Types of Semi Truck Insurance

While there are several types of semi truck insurance coverages, what you need as a new business owner will depend on your status of owner operator for the business. If you are an owner-operator with a permanent lease to a motor carrier for your trucks, then some aspects of your insurance will be covered by the motor carrier, reducing your costs for driver’s insurance. On the other hand, if you are an owner-operator under your own authority then you will have to take care of all liabilities for insuring your trucks as well as your drivers. This is relatively more expensive.

The insurance plan you choose for your business will have a number of provisions covered. Understanding what is covered, what isn’t and how frequently you make payments can help you choose the best plan.