Shopping for California Commercial Insurance? Here’s What You Need to Know

Shopping for California Commercial Insurance? Here’s What You Need to Know

Whether you are considering starting a new commercial trucking business or have run a business for many years, finding cheap truck insurance is one of the most essential ongoing financial expenditures you will make in the life of your company. However, the variety of cheap commercial truck insurance alternatives available can be daunting for anyone.

Having the right commercial truck insurance coverage in California can mean the difference between your fleet going out of business after a significant loss and recovering with minimum financial loss. If you’re shopping for Commercial Truck Insurance in California, this article will provide you with all of the necessary information you need to choose the best insurance provider for your California business.

Continue reading below to learn more, and contact SoCal Truck Insurance today to learn more about our commercial truck insurance coverage options in California and receive a free quote for your business.

What is Commercial Truck Insurance?

Commercial truck insurance is typically obtained by trucking companies, individuals who primarily utilize trucks for employment, or enterprises that rely on trucks to conduct business. The owner of a company typically purchases commercial trucking insurance, but it also protects the driver, passengers, and any other individuals injured in an accident.

Commercial truck insurance covers all types of vehicles used in the course of business, including certain types of trucks. Commercial truck insurance is distinct in that it only covers larger trucks, such as those employed in building, contracting, or hauling freight.

Do I Need Commercial Truck Insurance in California?

The insurance regulations for truckers in California are among the most demanding in the country. California state law mandates that all truck drivers and businesses that rely on trucks have a minimum amount of liability insurance. If your fleets travel across state lines, you probably have ample coverage. Your commercial truck insurance expert at your business insurance company or your insurance agent will be able to tell you for sure.

Keep in mind that these are the bare minimums. Some shippers and brokers may require higher levels of coverage. If your truck does not cross state lines and has a gross weight of more than 10,000 pounds, you must obtain a California Intrastate ID Number (T#) and be insured to the following levels:

  • Liability insurance (oil transport): $1,000,000
  • Liability insurance (hazmat): $5,000,000
  • Liability insurance (household goods): $300,000
  • Liability insurance (general freight): $750,000
  • Cargo insurance: $20,000 per vehicle and $20,000 per catastrophe

How Much Does Commercial Truck Insurance Cost in California?

Commercial truck insurance in California costs roughly $14,000 per year. This is for a single truck’s liability, cargo, and physical damage coverage. The cost of insurance might range from less than $12,000 to more than $16,000. When searching for affordable insurance, it’s a good idea to get a few commercial truck insurance quotes and compare them to be sure you have the coverage you need at the best price.

The cost of insurance is influenced by a number of factors, including:

  • Vehicle value
  • Number of trucks
  • What you haul
  • Number of drivers
  • Driving history
  • Years in business

Types of Commercial Truck Insurance

Some of the most frequent types of truck driver insurance are as follows:

General Liability Insurance

In the trucking industry, general liability insurance, often known as public liability insurance, protects third-party bodily injury and property damage that is unrelated to truck transportation.

Trucking Liability Insurance

Trucking liability insurance, also known as main liability insurance, protects you against injuries and property damage caused by your truck while you’re driving. The Federal Motor Carrier Safety Administration (FMCSA) sets a minimum liability limit of $750,000 combination single limit (CSL) or $1 million for truckers who need to file a federal filing.

Non Trucking Liability Insurance

Non trucking liability insurance protects you from third-party damages and injuries while driving your truck for non-business purposes, such as running errands.

Bobtail Insurance

When you’re driving for business but not transporting a load, such as when commuting between jobs, bobtail insurance protects you and your semi-truck.

Physical Damage Insurance

Physical damage insurance provides for damages and repairs to your truck in the event of an accident, natural disaster, theft, or vandalism. Although it is not required by law, it is strongly advised for all drivers.

Motor Truck Cargo Insurance

Truck cargo insurance covers your responsibility for the cargo you transport, typically paying up if it is lost or damaged.

How to Find Cheap Commercial Truck Insurance Coverage in California?

Trucking insurance companies typically provide quotes based on a variety of parameters. There are, however, a few strategies to reduce the cost of your commercial truck insurance.

Improve Driving History

In general, trucking insurance firms want to work with drivers that do not cost them a lot of money. Businesses with clean driving histories will be eligible for lower truck insurance rates.

Bundle Your Coverages

It is always a preferable idea to bundle all of your responsibilities into one heavy truck insurance package rather than buying them separately to reduce the cost of your semi-truck insurance.

Pay Annually

Trucking companies who pay their insurance in one single payment once a year rather than monthly save nearly 10% to 20% on their overall cost. This sum, however, can change due to the high price of semi-truck insurance plans.

Adjust Your Coverage

More coverage means more protection, but it isn’t always possible to afford. Fortunately, you can change your coverages to reduce the cost of your truck insurance. Also, keep in mind that having less coverage means having less protection, so be sure you’re happy with the coverage you’ve chosen.

Learning about ‘Semi Truck Insurance Requirements in California‘ will greatly benefit your journey as you shop for California Commercial Insurance. Get a head start in understanding the nuances of the Golden State’s requirements. Start your informed shopping today.

Save Money on Commercial Truck Insurance with SoCal Truck Insurance

Purchasing commercial truck insurance can be a difficult task for any fleet manager, but knowing what to look for in various providers can make the process less complicated. Doing your research and comparing coverage options before making a final decision can help you avoid overpaying for your commercial truck insurance.

Do you need help finding affordable interstates commercial truck insurance for your commercial fleet?

At SoCal Truck Insurance, we understand the day-to-day hazards that every commercial truck business encounters, which is why we provide our customers with dependable insurance packages that are personalized to fit their specific needs while also saving them money. We have more than 25 years of expertise in the commercial truck insurance industry and remain dedicated to providing our customers with the most competitive commercial truck insurance available.

If you need information about semi-truck requirements in California, visit our guide about it today.

To learn more about how our commercial truck insurance services can help protect owner-operators like you, contact SoCal Truck Insurance to speak with a specialist and receive a free quote today.