Finding the best commercial trucking insurance doesn’t have to be difficult.
Whether you own a single truck or an entire fleet, choosing the right commercial truck insurance is critical to protecting the prolonged success of your company in the future. From legal minimum insurance requirements to money-saving tips that most people overlook, keeping this comprehensive guide to commercial truck insurance in your back pocket will help you better understand some of the terminologies as well as help you select the right balance of coverage—affordable, yet there when you need it.
In this guide, we will cover:
Semi-trucks and big rigs all need to be properly insured, so let’s learn how!
Commercial truck insurance companies have to account for many different factors and risks when determining truck insurance rates. The following are just a few factors they will use to determine your rates.
Truck Policy Factor #1: Cargo
Insurance companies want to know the type of cargo being carried as well as its value. This will help determine how much it will cost to replace and how much damage the cargo can cause in the event of an accident.
Special cargo—such as livestock and oversized loads—will always increase the price of your policy.
Truck Policy Factor #2: Driving Distance
Insurance companies measure the distance to your farthest destination in a straight line to classify your policy into one of three types:
- Local – No more than 50 miles of traveling
- Intermediate – 51 to 100 miles
- Long Distance – Over 200 miles
Truck Policy Factor #3: Route Risks
Crime, high volumes of accidents, bad weather patterns, and other area-specific risks can make your policy more expensive. Where your trucks are kept overnight may also influence the cost of your policy.
Truck Policy Factor #4: Driving Record
The number of years that you and your team have been driving as well as the number of accidents and traffic infractions your teams have incurred can raise or lower your monthly premiums.
Truck Policy Factor #5: Vehicle Information
Your truck’s age, condition, and model all factor heavily into the risk—and thereby, the price—of the policy.
Insurance Policy Declaration
If you are currently insured, your Insurance Policy Declaration is the first page of your existing policy. It contains your name, location, policy expiration date, and other information that will help the new insurance company develop a quote for a new policy.
Driver’s License & History
Driver’s licenses and printed driving histories (accidents, speeding tickets, and other infractions) for yourself and any other driver you employ are required for an accurate policy quote.
Vehicle Identification Number (VIN)
Insurance companies will need the Vehicle Identification Number (the VIN)—which can be found on the truck’s registration documentation or somewhere on the vehicle itself.
Safety Information
The insurance company will probably have additional questions about the safety features of your truck that can be found in the manual.
Having the right information makes getting an insurance quote easy.
There are two basic layers of trucking insurance as well as four sub-categories.
A. General Liability Insurance
General Liability insurance is legally required coverage for any trucks. It’s a general coverage policy in which the insurance company will help pay for damages caused by your fleet.
B. Non-Trucking Liability Insurance
Non-trucking Liability insurance is a general term for the various insurance policies that cover damages when the vehicle is not transporting cargo. While not mandatory, insurance companies won’t cover accidents that occur “off-the-job” without this type of insurance.
1. Bobtail Insurance
Bobtail Insurance is a policy for offering protections when a truck contains no cargo and no trailer is attached—such as a truck is when returning from dropping off cargo or if the owner drives the truck for personal use.
2. Occupational Accident Insurance
Otherwise known as owner-operator insurance, Occupational Accident coverage does not technically classify the driver as an employee if they are injured in a company vehicle.
3. Motor Truck Cargo Insurance
Motor Truck Cargo Insurance covers the cost of the actual payload itself in the event of an accident independent of the truck or trailer used in transit.
4. Physical Damage Insurance
Physical Damage Insurance covers damage from non-transportation-related accidents—such as theft, floods, and fire.
Buying the minimum amount of insurance can cost you a fortune if an expensive accident happens.
Commercial truck insurance requires basic coverage for your assets and additional insurance to cover the potential damage to your customers and their property. The cargo itself requires a minimum amount of insurance as well that can vary depending on its value and type.
In the United States, the Federal Motor Carrier Safety Administration has set the minimum insurance requirements for trucks over 10,000 pounds (4,535 kgs).
- Cargo – $750,000 for non-hazardous items
- Passengers – $5,000,000 for vehicles that can seat 15 people or more.
The minimum insurance requirements for commercial trucks under 10,001 pounds are:
- Cargo – $300,000 for non-hazardous items.
- Passengers – Still $5,000,000 for vehicles that can seat 15 people or more.
The weight of your truck does not impact the minimum required insurance coverage when transporting hazardous materials—coverage amounts that typically run between $1,000,000 and $5,000,000 in required coverage depending on the material’s hazard classification.
Class A Hazardous Materials
Class A hazmat items pose a detonating risk and are considered “maximum hazard” with a $5,000,000 minimum coverage requirement.
Class B Hazardous Materials
Class B hazmat items are considered flammable and have a $5,000,000 minimum insurance coverage requirement.
Other Classes of Hazardous Materials
All other classifications of hazardous materials require a minimum of $1,000,000 in insurance coverage.
Hazard Classifications Defined
For an official listing of hazard classifications, consult the Code of Federal Regulations.
Class A and Class B materials are the most dangerous and therefore carry higher insurance rates.
To transport goods across state lines, you will need to have your Motor Carrier number—also known as an MC number—issued from your Interstate Commerce Commission (ICC) authority. Insurance companies will need your MC number to grant any insurance policy.
To receive your MC number, you will also need an official number from the United States Department of Transportation (USDOT)—which you can do on their official website.
Commercial trucking insurance can be very expensive, and for good reason—large trucks pose a higher risk than the average vehicle. Trucks are frequently targeted for theft and cause much more damage than small personal automobiles in the event of an accident. However, there are some steps you can take to reduce your rates.
1. Pay for Insurance Policies Upfront
If you can afford to pay your entire policy upfront instead of in monthly installments, you can save upwards of 15% off the total on your insurance plan.
2. Automate Your Insurance Payments
Aside from missing payments, many commercial truck insurance providers offer discounts for customers who opt into electronic automatic payment plans.
3. Keep Your Fleet With a Single Insurance Company
To be rewarded for your loyalty, many commercial trucking insurance companies offer loyalty or bulk discounts for insuring multiple vehicles with them.
4. Enroll in Safety Programs
Regular safety training for your employees not only helps minimize dangers on the road—it may also save you 10% or more on your insurance coverage. Ask about the requirements and compare the savings with the cost of training.
5. Be Thorough About Documenting Maintenance
Keep a maintenance program in writing to impress insurance companies—a tactic that can sometimes shave as much as 5% off your total insurance costs.
6. Be Brazenly Honest
Attempting to fudge driving records or hide vehicle histories will eventually be discovered and adjusted—if your policy is not canceled outright. What’s the remedy? Just be honest. You’ll likely save money as well as sleep better at night.
In the market for the best commercial truck insurance for your fleet?
My Little Salesman has been in the commercial truck sales industry since 1958. To continue to serve our customers after they’ve purchased their semi-trucks and commercial trailers through our listings, we’re also pleased to help connect them with the very best commercial truck insurance companies in the industry. We’re pleased to be able to connect you with those same companies here as well.