Cost and Coverage for Your Commercial Trucks

Strong Tie Insurance January 10, 2022 Our Blog

If you drive a truck for a living, it’s critical that you understand the legalities and obtain proper trucking insurance coverage. The rates will be greater than for a car, but the risks of driving this vehicle will also be higher.

Before you compare quotes and calculate the cost of your vehicle insurance, read the information below

Semi Truck Insurance for Commercial Trucks Explained

There are several types of coverage you should look for when purchasing semi truck insurance for your commercial trucks. The first is primary liability insurance, which will cost you between $5000 and $7000 and will cover any damages you may do while driving.

The second type of insurance you need is physical damage insurance, which has a price range of $1000 to $3000. This will cover any damage to your car caused by a collision, vandalism, theft, or extreme weather.

Occupational accident coverage ranges from $1600 to $2200 and pays out for compensation connected to work-related injuries, such as medical bills and lost wages.

You’ll also need general liability insurance, which costs $500 to $600 per year and covers anything not included by your primary liability or physical damage policy. These are some of them:

  • Any extra injuries sustained as a result of the accident
  • Any damage to properties caused by the accident

This coverage is for the company that owns and operates the truck, not the truck itself.

Rating Factors Affecting Your Trucking Insurance Cost

There are seven main rating criteria that might impact the cost of your vehicle insurance, these include:

1. US Department of Transportation 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 U.S. Department Of Transportation (DOT) operating history may also be a factor. Any infraction could result in you paying a higher rate.

2. Contract Requirements

For truckers that need a federal filing, the Federal Motor Carrier Safety Administration (FMCSA) normally 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.

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.

3. The Type of Your Vehicle

A heavy semi will generally justify a higher commercial truck insurance cost than a lighter pickup truck carrying the same type of product because of its potential to cause more damage in an accident.

It’s also typical for newer vehicles to be rated higher because they’re costlier to repair or replace than older vehicles.

4. Your Truckers’ Driving History

Because large, heavy vehicles delivering bulk volumes of merchandise can cause a lot more damage, accidents and infractions have a greater influence on commercial truck coverage than on a standard auto policy.

A little speeding violation on a trucker’s driving record can result in a significant increase in insurance premiums.

Keeping your driving record clean of accidents and violations can save you hundreds, if not thousands, of dollars on truck insurance coverage.

5. Cargo

Commercial truck insurance costs are greatly affected by the type of cargo you haul. Some cargo is just riskier to transport than others.

For example, an accident involving a truck transporting heavy farm equipment will likely cause more injury or damage than a truck carrying fresh produce.

When getting a quote, it’s very important to accurately and completely disclose the types of cargo you’ll be transporting to minimize the risk of having a claim denied.

Commercial Truck Insurance Options and Coverages

Here are the commercial truck insurance options and their coverages to consider:

  • Primary liability insurance – This can help cover the costs of harm you cause to persons and property if you’re in an accident.
  • General liability insurance – This is worth looking into if you want greater protection for your trucking company.
  • Cargo – If your cargo is damaged, such as during a storm or an accident, this sort of insurance may be able to assist you.
  • Physical damage insurance – Can assist cover the cost of replacing or repairing your truck if it is damaged.
  • Bobtail insurance – This form of insurance will assist cover you if you’re driving your vehicle without a trailer connected, also known as bobtailing.
  • Uninsured motorist coverage – If you’re in an accident with someone who is underinsured or uninsured, this policy can help.

Commercial Truck Insurance Requirements

What kind of insurance does a semi truck require? The goal is to get the right level of coverage for your peace of mind, but you must also comply with all legal requirements for operating as a trucker on the open road.

Remember that if you have the right policy in place, you’ll be protected as a driver, your truck and cargo will be protected, and your business will be insured as well.

Typically, you should start with main liability insurance and work your way up from there, adding further insurance as needed, such as physical damage insurance. That way, you’ll be covered if you’re liable for injuring or damaging others or their property, as well as damage to your own.

Get the Right Commercial Truck Insurance Coverage for Your Business

Choose the right insurance provider that offers the right semi truck insurance coverages. This lets you prevent unpleasant surprises when an accident happens.

At Strong Tie Insurance, we pride ourselves with more than 20 years of experience, ensuring you and your business are protected.

We’ve built special partnerships with businesses, contractors, body shops, hotels, vehicle dealers, and car rental companies to accomplish precisely what you’d expect an insurance company to do—rapidly handle problems and surpass your expectations.

To learn more about the coverage that won’t burn your pockets and still keep you protected, contact us at 800-671-5050 at Strong Tie Insurance today!