Truck Insurance Prices: Understanding Your Coverage

Truck Insurance Prices: Understanding Your Coverage

Finding cheap truck insurance is a crucial concern when owning and operating a commercial trucking business, but understanding what type of semi-truck insurance coverage is available can be a complicated process. While you may be able to get transparent pricing from some commercial insurance providers, many details of the policy are frequently disguised.

Many factors influence your commercial truck insurance prices and the type of coverage your commercial trucking business is eligible for. In this article, we will provide you with everything you need to know regarding commercial trucking insurance, including the various types of coverage offered, the average cost, and the qualifications required to be eligible.

Keep reading to discover all the ins and outs of semi-truck insurance, and be sure to contact SoCal Truck Insurance today to get a free quote customized to fit your company’s and truck’s insurance requirements.

Why You Need Commercial Truck Insurance

The Federal Motor Carrier Safety Administration (FMCSA) requires companies to insure their trucks appropriately in numerous states. Without it, you might not be able to ship cargo across state lines.

When you get commercial truck insurance, you are also protected against legal liability in the event of an accident. When you’re hit with multiple lawsuits resulting from an accident, general liability insurance will help mitigate the damage.

Although some incidents are minor, not having the proper coverage might cause delays in the administrative procedure, and insurance reduces downtime following a collision. Furthermore, it will also help you save money in the long run.

What Does Commercial Truck Insurance Cost?

The typical cost of commercial truck insurance varies based on a number of criteria, many of which we will discuss below.

The cost of commercial truck insurance in the United States ranges from $640 for specialty truckers to $982 for transport truckers. Keep in mind that these are only averages. To calculate your rate, insurance companies use a variety of rating variables, each of which can have a significant impact on your premium.

Here is a look at some of the factors that determine the cost of commercial truck insurance:

USDOT Authority

Because leasing businesses often cover their drivers’ major liability risk while their drivers are under dispatch, leasing to a company is substantially less expensive than operating under your own authority. Non-truck or bobtail coverage is typically required to fill in the gaps, but it is less expensive than main liability.

If you’re working on your own authority, your USDOT operating history may also be a factor, and any infraction could result in you paying a higher rate.

Contractual Requirements

For truckers that need a federal filing, the FMCSA typically requires a minimum liability limit of $750,000 CSL or $1,000,000 CSL. This is far higher than most state minimums, implying that those drivers should expect to pay extra. Additionally, certain contracts may demand you to carry additional coverages such as motor truck cargo, physical damage, or trailer interchange, all of which will raise your truck insurance premium.

Carrying Cargo

The sort of cargo you transport has a significant impact on the cost of commercial truck insurance. Some cargo simply isn’t as safe to move as others. To avoid having a claim refused, it’s critical to precisely and totally describe the sorts of cargo you’ll be transporting when acquiring a quote.

Operating Radius

Due to longer drive times between stops and additional, and perhaps unfamiliar, route alternatives, truckers with a large operating radius are often exposed to higher risks. A semi-truck driver who travels regionally will typically earn more money than a driver who only travels local routes.

Vehicle Type

Because of its potential to cause more significant damage in an accident, a hefty semi will usually justify a higher commercial truck insurance rate than a lighter pickup truck transporting the same sort of merchandise. It’s also common for modern automobiles to be scored higher than older vehicles because they’re more expensive to fix or replace.

Driving History

Because large, heavy vehicles delivering bulk cargo volumes can cause a lot more damage, accidents and infractions have a more significant influence on commercial truck coverage than on a standard auto policy. Keeping your driving record clean of accidents and violations can save you hundreds, if not thousands, of dollars on truck insurance coverage.

Type of Insurance Coverage

Your commercial auto insurance premiums will be heavily influenced by the type of auto coverage you choose. Most states mandate auto liability coverage, which covers you if you or an employee are at fault in a commercial vehicle collision. Make sure to offer specific information about your insurance needs to receive an accurate insurance estimate.

Coverage Limits

You’ll need more significant insurance limits if you want a commercial auto policy that covers a wide range of damages. The cost of high coverage limits is higher than the cost of basic coverage. For commercial auto insurance, the median limit among average customers is $1 million.

Industry Risks

Your industry’s risks and how your vehicles are used for business reasons influence how much you pay for commercial auto insurance. A food truck that is always on the road, for example, will most certainly have higher charges. Construction vehicles that frequent hazardous job sites may also be at risk.

Request a Semi-Truck Insurance Quote from SoCal Truck Insurance Today

Have you decided to insure your trucks with commercial trucking insurance? Understanding everything that you are signing up for before choosing a provider is critical in the decision-making process.

If you’re a commercial trucking company looking for affordable and competitive commercial trucking insurance, SoCal Truck Insurance may be able to assist you.

With over 25 years of expertise in the commercial truck insurance industry, SoCal Truck Insurance understands that every commercial trucking company is unique. Our team of semi-truck insurance specialists is committed to assisting our customers in finding affordable commercial truck insurance coverage that fits their company’s budget.

Contact SoCal Truck Insurance to receive a free semi-truck insurance quote and start saving money today.