How Much Does Bobtail Insurance Cost?

How Much Does Bobtail Insurance Cost?

For those truck business owners who drive their 18-wheeler vehicles without hauling any equipment, i.e., without a trailer or with an empty trailer, bobtail insurance or deadheading insurance is necessary. 

If you have a business with these vehicles, you need to know how much bobtail insurance costs. Read on to answer all of your questions.

How Much Does Bobtail Insurance Cost?

Man sitting in a blue truck reading bobtail insurance cost and policy.

Bobtail insurance could cost you around $400 annually and commonly covers up to a limit of $1,000,000. 

How much is bobtail insurance per month? The average bobtail truck insurance cost is $30 to $40 per month

Sometimes this limit can be higher, rarely lower, depending on your insurance company’s rates. Many factors have an impact on semi truck bobtail insurance costs, including:

  • Driving history
  • Coverage limits
  • Business size
  • Annual revenue
  • Claims history
  • Drivers history
  • Number of employees

Once you have figured out that you need bobtail insurance for your trucking business, the next step is to see how you can save on insurance and ensure maximum coverage in case of accidents or damages.

How To Lower the Cost of Bobtail Insurance

Buy Your Bobtail Insurance Annually

Most insurance companies increase the rate of their policies yearly because they know customers find it difficult to switch between companies and would rather stick to what they’re paying. However, you can save by shopping around for your bobtail insurance, if not your entire trucking insurance needs, every year and review how much it will cost you.

With our rates at East Insurance Group, you can be assured that your bobtail insurance price will be reasonable!

Choose Higher Deductibles

Other ways to save on your trucking insurance include considering higher deductibles because that would mean a lower cost on your monthly premium. However, if an accident occurs, you might have to shell out hundreds of dollars (or more depending on the damages) that you had initially saved upon with a lower premium.

Hire Drivers With Clean Records

The best way to maintain low costs is to hire drivers who have a clean driving record. This shows that they are responsible; hence, the insurance company has a lower risk in case of accidents.

How Do I Apply for Bobtail Insurance?

Here is some information you will need before applying for your trucking insurance, including bobtail liability:

  • Contact information of the owner-operator
  • What type of cargo will you be hauling (not exactly necessary for bobtail liability)
  • What distance will you be covering en route for delivery as well as pick up
  • The criminal history of the driver, if applicable
  • Your credit report
  • A history of your insurance claims for the last 3 years

After gathering all your information, you will need to get some quotes from insurance companies. Insurance brokers can help you with this, or you can contact us for a customized quote. You can then compare quotes from different companies and choose which suits you best.

What Does Bobtail Insurance Not Cover?

Besides theft, bobtail insurance doesn’t cover:

  • Damage to the truck
  • The load you are hauling
  • Injuries

Do I Need Bobtail and Non-Trucking Liability Insurance?

While the two are easily confused, bobtail insurance covers the damages caused when you’re driving your vehicle without cargo. Non-trucking liability only covers you when you are not under dispatch and are being used for personal reasons. Additionally, non-trucking liability insurance, sometimes called temporary bobtail insurance, costs less than bobtail insurance, which is also why it has limited coverage.

Generally, most trucking companies require their drivers to be covered under bobtail insurance because it is quite common to drive without any cargo, even while under dispatch.

If you have just gotten a new authority for running your trucking business and you own trucks for the same, then it is likely that you will need the following types of liabilities:

  • Primary liability
  • Physical damage liability/Basic coverage
  • Non-trucking liability
  • Bobtail liability

We understand that you want to save up on your trucking insurance, especially because the rates are ever-increasing. Instead of cutting down on the different coverages, consider some of these options to save more in the long run, and you won’t have to overpay for your trucking insurance.

Read more: Everything You Need To Know About Non-Trucking Liability Insurance

Package Insurance or Individual Liabilities?

While buying a single insurance package usually makes more sense than buying policies from different companies, it all depends on how much the physical damage coverage is worth. 

Obviously, it costs more to cover a truck model released in 2015 than to cover an older model.

For older trucks, the physical damage liability can cost between $1,500-$2,500, and much more for newer trucks. Purchasing bundle insurance is great if you find an insurance package covering this and bobtail liability and other liabilities. If not, it makes more sense to buy individual policies piece by piece as you can save up to $500.

Bobtail Insurance and Uninsured/Underinsured Motorist Liability

What most people ignore in not buying bobtail insurance is that it also covers underinsured or uninsured motorist liability. This means that if you have bobtail coverage and your truck was involved in an accident (while bobtailing, i.e., without a trailer), it can cover damages caused to the other person if they are not insured or underinsured.

Is Bobtail Insurance Expensive?

Bobtail insurance is not expensive because it is a liability-only policy and can be added to your other policies. One of the best ways to lower the average cost of bobtail insurance is to bundle multiple policies. 

Does Bobtail Insurance Cover Theft?

No, bobtail insurance doesn’t cover theft. Usually, theft is included in the comprehensive insurance coverage, depending on the type of policy you choose. 

Still confused about bobtail insurance cost, or do you need some help getting a quote for your business? Contact us today and get all the information you need fast and for free!