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How Much Does Trucking Insurance Cost?

Updated: Jan 17

How much does trucking insurance cost

Purchasing insurance for trucking companies, particularly new trucking authorities, can be challenging. There are multiple insurance companies to consider. They must determine that they purchase adequate coverage to cover their risks, consider whether or not their customers accept the coverage they are buying, and consider the cost of the premium. Trucking insurance is typically the third largest expense for trucking companies after driver salaries and fuel costs. That leads to the following question: how much does trucking insurance cost? First, let's break down the costs associated with trucking insurance. Types of trucking insurance and their associated costs:

Commercial Auto Liability For Truckers:

What is truckers liability insurance?

This covers bodily injury and property damage caused by an insured power unit. Commercial auto liability for trucking companies is usually the most expensive line of coverage a trucking company will purchase. The minimum limit of liability for an interstate authority, according to the FMCSA, is a $750,000 combined single limit. However, most truckers purchase a $1,000,000 combined single-limit policy to comply with standard shipping requirements. The premium for commercial auto liability for truckers can vary greatly depending on the state in which you are located. It is not uncommon for some motor carriers to pay as little as $5,000-$10,000 per truck for an annual policy. Typically, preferred trucking insurance companies offer these prices to safe trucking operations that have been in business for multiple years and show preferable safety scores, drivers with limited violations, and minimal claims history. Those looking for new authority truck insurance and motor carriers with minor DOT violations, minor claims, or minor moving violations may expect to pay $11,000 to $18,000 per truck for an annual policy. Those motor carriers with poor DOT scores, higher claims, poor driver records, or inexperienced drivers may expect to pay a much higher premium that can cost $20,000 - $30,000 per truck for an annual policy. Fill out our online form to find out more about truckers' auto liability insurance and get a quote.

Motor Truck Cargo:

What is cargo insurance for truckers?

Cargo insurance covers the cost of the commodities or freight that the trucking company hauls. The premium for this coverage is primarily determined by the type of freight that the trucking company transports. On average, those trucking companies that carry dry van goods pay $1,000 per truck for an annual policy with $100,000 limits. Preferred companies and fleets can expect to pay as little as $400- $800 per truck. Motor carriers with higher risk may pay as much as $1,000 to $2,000 per truck. Hauling target commodities like alcohol, tobacco, or electronics will increase the motor truck cargo insurance premium. Motor carriers hauling refrigerated goods typically see a higher premium than those hauling dry freight. The main factor that causes the increase in insurance premiums for refrigerated freight is the cost of refrigeration breakdown insurance and the added risk of hauling frozen meats or seafood that can spoil if not properly refrigerated. Motor carriers transporting refrigerated goods pay, on average, $1,200- $1,600 per year, while some motor carriers experience higher premiums due to their risk factors. Trucking companies hauling flatbed freight typically see premiums that cost similar to dry van operations. However, oversized and overweight trucking companies are likelier to purchase higher motor truck cargo insurance limits than the standard $100,000 policy. Depending on contract requirements, oversized and overweight motor carriers will likely need a $250,000 policy, resulting in a premium of around $1,200 - $1,800. Oversized and overweight may also require purchasing an excess policy, which is a separate policy written over the primary cargo policy. Those costs are determined by the excess cargo amount that is needed. Car haulers experience some of the highest premiums for motor truck cargo insurance. Truckers that haul five trucks or more will likely need a $250,000 cargo limit to cover the value of the cars transported. The premium can cost anywhere from $3,000 to $4,000 per year, depending on the risk factors of the motor carrier. Exotic and luxury cars will require a higher cargo limit and could increase the premium by $1,000 to $2,000 per year. For more information and to request a motor truck cargo quote, visit our motor truck cargo page.

Trucker's Physical Damage:

Do I need physical damage insurance for my semi truck?

Truck insurance companies determine the premium for physical damage by a percentage of the cost of replacing your truck and trailer. A key aspect of physical damage is that trucking insurance companies will often charge a higher percentage on lower-valued equipment and a lower rate on higher-valued equipment. Trucking fleets with proven safety records can expect to pay as little as 2%-4% of the total value of their equipment. Owner-operators and small fleets with good records typically see rates anywhere from 3%-5% of the equipment value. New trucking authorities and motor carriers with poor risk factors usually pay 6%-12% of the equipment value. Find out about physical damage for trucking companies and inquire about a quote.

Truckers' General Liability:

This covers bodily injury and property damage not caused by a power unit. Typically, a trucking company with 1-5 trucks pays around $500-$700 per year, and larger fleets pay around $1,000- $2,500 per year.

Trailer Interchange and Non-Owned Trailer Coverage:

This coverage covers the replacement cost of a trailer you do not own pulled by your truck. It is important to note that trailer interchange is only offered when a written contract is provided to a motor carrier explicitly states that trailer interchange is required. A trucking company will purchase non-owned trailer insurance when a contract is not provided. Similar to physical damage coverage, this is generally calculated as a percentage of the trailer's cost.

Occupational Accident Insurance:

Truckers' Occupational Accident, often called Occ/Acc, is provided to independent contractors under a permanent lease to a motor carrier's authority. Trucking Occupational Accident coverage includes medical, disability, death, and dismemberment benefits for accidents that occur while leased onto a motor carrier. The premium for this coverage ranges from $140-$180 per month per driver.

Worker's Compensation:

The trucking industry experiences higher worker's compensation rates than most other industries. Worker's compensation for trucking companies is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue their employer for the tort of negligence. The premium for worker's compensation is determined by a percentage of the payroll for W-2 employees and drivers. At the end of the day, trucking insurance can be complex and expensive. Thomas Wilson Group strives to provide customized coverages to our customers at a cost-effective price. If your trucking insurance is coming up for renewal or if you are a new company looking for new authority truck insurance, give us a call today or request a quote to see how we can lower your trucking insurance cost!


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