Get Your Commercial Semi Truck Insurance Quote Today
Every state requires trucks or commercial vehicle to be insured. California assigns the minimum coverage limits for bodily injury liability and property damage liability.
Certain types of semi truck insurance are required by law, depending on the state in which you operate. Make sure that you work with a commercial auto insurance company that understands the industry you belong to in your state.
Semi Truck Insurance Commercial Coverage
If an owner-operated truck business is leased to a motor carrier, they are usually covered under the trucking company's liability insurance.
This auto liability insurance coverage is typically only enforced when under a load or dispatch, and it is intended to provide coverage for third-party injuries or damage to property if the motor carrier is held liable.
Types of Insurance an Owner-Operator Needs
An owner-operator must also obtain other types of commercial truck insurance coverage for their commercial vehicle. Typically, this additional coverage is mandated by the trucking company. These include:
This commercial auto insurance coverage pays for property damage or bodily injury in the event of an accident if the driver or truck is not under dispatch and is on personal time. The coverage applies with or without a trailer.
Primary liability protects the fleet of your trucking business in case a third party is injured from an accident, therefore, the Federal and California state law requires that you have this kind of additional coverage.
General liability, on the other hand, is also a required semi truck insurance liability coverage because this covers you if one of your drivers got into an accident that caused damage to someone's property and this also covers your driver's mistakes during his delivery.
Occupational Accident Insurance Coverage
Occupational accident coverage is a type of contingent liability insurance that covers the owner-operator if they are leased onto a motor carrier.
The commercial trucking insurance coverage is typically purchased by the owner-operator or the motor carrier, but it's a safeguard for both a fleet and an independent contractor. This policy may provide coverage for accidental death & dismemberment, medical expenses, and disability.
Physical damage provides you with protection against any losses or damages to your vehicle resulting in an accident with another vehicle, truck, or object. This type of insurance coverage is important for both motor carriers and owner-operators to carry and is often required.
Gap insurance may be necessary if you purchase an expensive truck and choose to finance it.
In some cases, your truck is seriously damaged or totaled, the current depreciated value of the semi truck will be lower than the amount you owe on it. If this happens, your insurance will give you enough coverage to allow you to pay off your loan instead of taking an extensive loss.
Equipment coverage can be added to the physical damage policy to cover additional equipment like chains, tarps, and more that are added to the truck. Equipment insurance can also provide your business with compensation if you lose a full tank of gas due to an accident.
How Much Does Commercial Truck Insurance Cost?
The cost of insurance for commercial trucks depends on a number of factors. On average, owner operators that lease their truck pay between $3,000 and $5,000 per year for their commercial truck ins. Insurance policies for those driving on their own authority might spend between $12,000 and $16,000 per year.
While various elements play into how much you'll pay for your truck insurance policy, here are some of the most crucial factors:
- The type of cargo or materials that you haul.
- What kinds of truck or trucks your business operates, including how old your commercial truck is and how much it is worth.
- The age, experience, and training of anyone driving your commercial trucks.
- The credit history of your and/or your business
- The type of payment plan you choose: monthly, quarterly, half, yearly, etc.
- The type and amount of commercial truck insurance policy you want/need
Insurance companies use these factors to determine your general truck insurance quote. To help keep costs down, there are several things your business can do:
- Opt for a higher deductible. Be aware that a higher deductible means you would be responsible for a higher amount of out-of-pocket expenses.
- Hire drivers with clean driving records. Insurance companies prefer drivers with fewer than two moving violations.
- Pay in larger increments. You can often save by paying for a year at a time versus only paying monthly.
- Ask your commercial truck insurance company about discounts. Some commercial insurance firms offer discounts for a variety of reasons. You'll never know unless you ask.
- Focus on safety training. Not only will training your employees to help reduce the number of accidents, but these courses can sometimes get you a lower rate.
The best way to ensure that you're getting the best trucking insurance rates is to talk to one of our agents. We can help you determine the best commercial truck insurance quote and coverage for your business while working to find the lowest available cost.
Semi Truck Insurance FAQs
What is commercial insurance?
Commercial insurance, often known as business insurance, is a broad sort of protection for a firm and its employees. It aids in the defense of a company against claims for physical damage, personal harm, cyberattacks, and data breaches.
What are the common commercial insurance policies?
The following are some of the most common commercial insurance policies:
- Public or General liability insurance
- Property insurance
- Professional liability insurance
- Product liability insurance
- Vehicle insurance
- Business income insurance
If your company requires additional protection, you may tailor each policy by adding coverage.
For example, not all automobile insurance policies are the same.
You may require umbrella insurance if you own a fleet of semi-trucks to cover fire damage or when you use your vehicle for non-trucking purposes.
What are the types of commercial insurance?
Commercial semi-truck insurance comes in a variety of forms to cover automotive and transportation companies. Here are some of the most common:
General Liability Insurance
It's also known as public liability insurance, and it covers property damage and injuries that occur as a result of normal business operations. It does not cover accidents on the road. Semi-truck insurance is almost always needed by law.
This sort of commercial insurance is required by the state. In the event of a work-related injury, it compensates employees' medical expenditures and missed earnings.
It covers injuries sustained when loading trucks or after a truck collision, as well as diseases caused by hazardous chemical exposure.
Motor Truck Cargo Insurance
The goods placed on a truck is covered by motor truck cargo insurance if it is lost or destroyed.
A suitable application is an item that was supplied incorrectly.
Trucking Liability Insurance
This sort of insurance covers bodily harm and property damage caused by truck driving or operation. For trucking companies, each state has a minimum level of coverage that must be met.
Non-hazardous cargo haulers must have a minimum of $750,000 in truck liability insurance coverage, according to federal law.
Non-Trucking Liability Insurance
It covers injuries and damages to other individuals, such as medical expenses and repairs, that occur when semi-trucks are out for non-business purposes. Truck drivers who lease from a motor carrier are covered by this sort of commercial insurance.
Bobtail insurance is a sort of liability insurance that protects the driver and the truck when they are on the road but not transporting anything. This sort of insurance is required by several motor carriers for leased drivers.
Physical Damage Insurance
Accidents, natural disasters, theft, and vandalism are all covered, as are damages and repairs to the truck. There are two forms of physical damage insurance:
- Comprehensive coverage - this insures damages caused by theft and fire
- Collision coverage - this insures damages resulting from accidents
Why do you need commercial insurance?
Accidents, injuries, lawsuits, theft, property damage, and natural catastrophes are among the hazards that commercial insurance protects businesses and their assets from.