Average Semi Truck Insurance Costs for Owner-Operators

Average Semi Truck Insurance Costs for Owner-Operators

Owner-operators require specialized truck insurance coverage regardless of whether they’re operating under a permanent lease with a motor carrier or on their own. Being an owner-operator, commercial truck insurance should be one of the first things to think about.

In addition to being a requirement, truck insurance will protect you and your business should something go wrong. So you’re thinking, how to get cheap semi-truck insurance?

Your commercial truck insurance is a legitimate business expense and a legal requirement to get your truck authority and operate. Although insurance is a necessity in every budget, you shouldn’t pay too much or carry coverage you don’t need.

What is commercial truck insurance average cost?

Often referred to as owner-operator or commercial truck insurance, semi-truck insurance refers to a variety of policies offered to truck drivers. Most of these policies cover truckers’ legal liabilities in cases such as hauling cargo or driving for noncommercial purposes.

There are several types of coverage that can be added to a truck driver’s policy depending on a variety of factors specific to the driver.

Just like personal auto insurance, in the event of an accident or damage to your vehicles that you use for operations, commercial truck insurance can protect you. Owning or leasing a truck or managing a company of trucks and drivers will require you to purchase commercial truck insurance.

What are the Different Types of Insurance and their Average Cost?

Owner-operators can spend $15,000 or more per year on semi-truck maintenance and repairs. Some of the various factors that affect the additional finance costs include unexpected repairs and breakdowns, preventive maintenance, and tire replacements.

For owner-operators, commercial truck insurance cost ranges from $8,000 to $12,500 per year. Commercial truck insurance companies offer truck insurance in different levels and types. Your needs may vary depending on where you work, what type of trucking job you have, what kind of cargo you transport, as well as local laws and regulations.

There are specific types of commercial trucking insurance that are legally required. Other types of insurance may be custom-made for specific types of trucking businesses. In order to protect your company’s assets, it’s important to evaluate all your options.

Among the many coverage and policy options are the following.

Primary Liability

Unlike other types of insurance, this type of trucking insurance is required by law. While the coverage limits do not cover your truck, it does cover damage done to other people and/or their vehicles, properties, etc. Owner-operators and leased trucks both need this.

Primary liability will be the most expensive portion of your insurance package, with a national average monthly cost of $500 to $1,500 or $5000 to $7000 annually.

General Liability

This type of business insurance is a good choice if you want to increase your trucking business’ protection.

General liability insurance, sometimes called public liability insurance in the industry, provides coverage for both bodily injury and property damage of a third-party caused by a company’s regular business activities—not by trucking activities.

Your general liability coverage, for example, will pay for medical payments or legal bills if a customer slips and/or hurts themselves in your warehouse or office.

Public liability insurance is typically required for owner-operators by law. However, even if it isn’t mandatory, getting this type of insurance for only $500 to $600 annually is a good idea for any business as it protects you from the most common risks.

Bobtail Insurance

This is insurance that can protect you in the case of an accident while the trucks covered are driven without a trailer attached, commonly known as bobtailing.

This type of truck insurance policy is relatively unknown to most people. Bobtail insurance is a form of liability insurance that covers you and your truck while you’re driving for the business without hauling any load.

It is essential to have this coverage when you’re traveling between jobs. In the event that someone sues you for an accident, your legal bills will be covered by the policy. Lessors often require leased drivers to have this insurance.

Physical Damage Insurance

Damages resulting from accidents, natural disasters, theft, and vandalism are covered by the physical damage policy. Although it is not required by law, it is recommended for all drivers who have their own semi-trucks. 

With an average annual cost ranging from $1000 to $3000, this type of insurance consists of two components: 

  • Collision coverage – this will cover damage to your rig in the event of an accident.
  • Comprehensive coverage – this includes damage resulting from factors other than accidents, such as fires and thefts.

It is also important for owner-operators to protect their investments with cheap physical damage insurance for semi-trucks. The liability insurance of most motor carriers will cover their commercial truck drivers, but it does not include physical damage coverage to the driver’s truck.

Cargo Insurance

This type of insurance can provide coverage if your cargo is damaged, as might occur in an accident or during a storm.

You will be covered for the cargo you transport with this commercial truck policy. The insurance will pay out in the event that items in your truck are damaged or lost. Owner-operators are not legally required to carry this insurance, but it’s a wise decision to do so in order to protect their business.

Unfortunately, mistakes and accidents can occur during delivery, so having adequate motor truck cargo coverage is crucial.

Umbrella Policy Insurance

It is possible that your trucking company has gaps or uncovered exposures between policies or that your primary liability insurance limits are inadequate.

You can cover these gaps with umbrella insurance and increase your liability limits at a relatively low cost of around $2,500 per year. Make sure you carefully read the policy details to learn what each coverage will cover. There are policies that may exclude important risks to your business.

Frequently Asked Questions:

What is the average cost of commercial truck insurance for owner-operators?
Commercial truck insurance for owner-operators generally costs between $8,000 to $12,500 per year, though it may vary depending on specific needs and local laws.

What is Primary Liability insurance and how much does it cost?
Primary Liability insurance covers damage to other people and their property and is required by law. It costs around $500 to $1,500 per month or $5,000 to $7,000 annually.

What does General Liability insurance cover and what’s its cost?
General Liability insurance covers bodily injury and property damage caused by regular business activities. It costs about $500 to $600 annually.

What is Physical Damage insurance and how much does it cost?
Physical Damage insurance covers damages from accidents, natural disasters, theft, and vandalism to the owner’s semi-trucks. The annual cost ranges from $1,000 to $3,000.

What does Umbrella Policy Insurance cover and what is its cost?
Umbrella Policy Insurance covers gaps between policies and increases liability limits. It typically costs around $2,500 per year.

How to Get the Right Semi Truck Insurance Coverage for Your Needs?

Specialty vehicle operators face a variety of daily risks as a result of accidents on the road, injuries while performing repairs and more. Therefore, you need a comprehensive program from an insurance provider that meets your specific needs in trucking operations while saving you substantial premium dollars.

We are devoted to providing business owners with the best policies and services on the market, giving the best cheap semi-truck insurance in California.

If you need help in finding the best semi-truck insurance, check out our ultimate guide about semi-truck insurance.

We provide the most affordable commercial truck insurance in California. To learn how to get cheap semi-truck insurance, email us at [email protected] or contact us at 562-372 2443 at SoCal Truck Insurance today!