If you operate a truck for work, it is important that you cover the legalities and seek adequate insurance coverage. The premiums will be higher than on a car, but the risks associated with operating this vehicle are higher too. Below you will find all you need to know before you compare prices and check out your truck insurance cost.
Semitruck Insurance Explained
There are different types of coverage you should seek for a semitruck. The first one is primary liability insurance, which will cost you $5000 to $7000, and covers you for the damages you might cause during driving.
The second type of insurance you need is called physical damage, for which the cost is capped at $1000 to $3000. This will cover any damage caused by collision, vandalism, theft, or extreme weather to your vehicle.
Occupational accident coverage generally costs $1600 to $2200 and will provide a payout for compensations related to work injuries, including medical bills and income replacement.
According to Forerunner Insurance Group, you will also need general liability insurance, costing the business $500-$600, and it covers anything that is not included in your primary liability or physical damage coverage. These include:
- Any additional injuries caused by the accident
- Property damage as a result of the accident
This coverage doesn’t apply to the truck, but the business operating it.
You might also consider taking out an umbrella policy that would give you coverage for workers’ compensation, auto liability, and general liability. This insurance generally costs $500 to $700.
Owner Operator Direct recommends taking out additional coverage, including:
- Cargo coverage to cover your load
- Underinsured motorist coverage
- Bobtail insurance for independent truck drivers
- Non-trucking insurance
- Trailer interchange policy
It is always a good idea to get in touch with a professional or learn more about which trucking insurance you need before getting a quote.
Do You Need Truck Insurance?
According to the ruling of the Federal Motor Carrier Safety Administration (FMCSA), you need to have adequate insurance to drive on public roads. You should obtain a motor carrier number that will be used to arrange your insurance. A certificate of insurance is necessary for your trucking business to operate.
However, if your company employs multiple people driving the truck, it might be a good idea to have spot checks, monitor and upgrade their skills, and manage their behavior behind the wheel of the truck. Having drivers with a clean driving record who are trained well will save you money and protect your reputation. It could also help you save on your truck insurance.
The Average Cost of Truck Insurance
If you are an owner and operator of the truck, you are expected to pay between $9000 and $15,000 a year, including all the insurance elements, provided that you have a good driving record.
In recent years, however, prices for truck insurance have gone up, and you might even have to pay as much as $30,000 per year, depending on the coverage you need and your driving history.
For owner-operators, the cost of coverage is between $2000 and $4000, provided that they are leased to a motor carrier. Of course, there are certain circumstances that will have an impact on the price of the premium.
How the Price of Semitruck Insurance Is Calculated
There are different things that will influence the cost of your truck insurance. Companies will look at your business activities and industry to find out what you need coverage for and how much you have to pay:
- Cargo. The cargo you haul in your truck will affect the risk level for the insurance, and consequently the price too. The more dangerous or heavier your truckload is, the more damage it can cause during an accident.
- Operating radius. The more truck drivers use their vehicle and the longer distances they cover, the higher the price will be. Further, long-haul trucking can mean being behind the wheel for longer, which can cause you to be more tired, putting you at a greater risk of being involved in an accident.
- The type of the truck. The heavier and more powerful your truck is, the more it will cost to insure. A lighter pickup truck is easier to maneuver and can cause less damage than a heavy one. Also, the more expensive the truck is, the more the repairs will cost, so your insurance premiums are expected to rise.
- The driver’s history. A trucker with a clean driving record can always get a better deal than one with multiple traffic violations. Even a small speeding ticket will add hundreds to the policy cost.
- Location of the business. Every state has its different pricing methods.
How to Save on Your Truck Insurance
One of the best ways to save money on your truck insurance is to have a clean driving record. Taking additional safety training can help you stay out of trouble, avoid speeding tickets and accidents. If you have CDL experience, you can save a significant amount on your insurance too.
Paying your annual premium in full can also save you some money. If the business can afford it, you might want to opt for this cost to save more long term. A single payment instead of monthly installments can save 10, even 20, percent on your truck insurance.
Your deductibles will also have an impact on your price. If you would like to save long term on the premium, you might want to increase the deductible. This means that you will have more financial responsibilities when something happens, but, as you reduce the risk for the insurance company, your monthly premiums will go down.
Check out our tips on cheap truck insurance to find the right coverage for your needs.
Getting the right coverage for your truck can be challenging, as there are plenty of insurance policies that exist to protect your drivers, the public, and your business. Shop around and ensure that you cover every eventuality your truck might encounter.
Check this out if you need additional information, resources, or guidance on car insurance.
Sources:
What does Average semi truck insurance costs for owner operators?
COMMERCIAL TRUCK INSURANCE 101
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