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.