How Much Is Commercial Truck Insurance Per Month?

Dollars and Sense: Understanding the Average Cost of Commercial Truck Insurance per Month

Strong Tie Insurance May 9, 2023 Our Blog

Commercial truck insurance is a crucial aspect of the transportation industry, providing financial protection to trucking companies and truck owners in the event of accidents, damages, or legal liabilities. If you’re a business owner, you might be wondering: How much is commercial truck insurance per month?

Understanding the cost of commercial truck insurance is essential for businesses and individuals involved in the trucking business. In this article, we will explore various factors that influence commercial truck insurance rates, the average cost per month, and tips for reducing insurance expenses.

Average Monthly Costs of Commercial Truck Insurance

Average monthly truck insurance costs can vary depending on several factors, including insurance company policies and state regulations. Commercial truck insurance coverage typically includes various components, each with its associated cost.

Here are the main comprehensive coverages commonly found in commercial truck insurance policies, along with their average monthly cost ranges:

  • Primary Trucking Liability: This coverage, which protects against bodily injury and property damage caused by the truck driver, typically ranges from $500 to $1,500 per month.
  • Non-Trucking Liability: Non-trucking liability insurance, which covers accidents that occur when the truck is not actively working, has an average monthly cost ranging from $25 to $50.
  • Physical Damage Coverage: The cost of physical damage coverage, which protects the truck itself against damage or loss, depends on the value of the truck. On average, this coverage ranges from $100 to $300 per month.
  • Occupational Accident Insurance: Occupational accident insurance, which provides coverage for medical expenses and lost wages in case of work-related accidents, typically costs between $140 and $210 per month.
  • Motor Truck Cargo Insurance: This coverage, which protects the goods being transported, carries an average monthly cost of $50 to $150.

Specialty truckers transporting niche cargo like waste, hazardous materials, or septic are likely to pay approximately $650 per month for insurance. This higher cost is due to the unique risks involved in handling and transporting such cargo.

On the other hand, transport truckers involved in hauling vehicles and other goods usually require insurance coverage costing around $1,000 per month.

How Much Is Commercial Truck Insurance Per Month in California?

If you operate in California, the average cost of commercial truck insurance is approximately $14,189 per year. Premiums in the state typically range from $12,094 to $16,563. Keep in mind that these cost estimates are based on truckers with one-truck operations who need insurance coverage for liability, cargo, and physical damage.

Other factors influencing the cost include the type of cargo being transported, your driving history, and the duration of your business operations.

It’s important to note that these figures are general estimates, and actual insurance costs may vary depending on individual circumstances. To obtain accurate and tailored insurance quotes, it’s recommended to consult with California insurance brokers and discuss your specific needs and requirements.

Factors Affecting Average Cost of Commercial Truck Insurance

Now that we’ve shed light on the question, “How much is commercial truck insurance per month?” it’s time to delve into the factors affecting the costs.

Commercial truck insurance costs can vary significantly based on several factors that influence the overall premium. It is essential to understand these factors and their impact on pricing to have a realistic expectation of how much you can expect to pay for commercial truck insurance on a monthly basis.

While precise figures can vary depending on individual circumstances, we will provide you with key insights into the factors that influence pricing and a general understanding of the potential cost range.

1. Type of Coverage

The type and extent of coverage you choose for your commercial truck play a significant role in determining the monthly insurance premium. Standard coverage options such as liability insurance, physical damage coverage, and cargo insurance all contribute to the overall cost. Additional coverage types, such as motor truck general liability insurance or bobtail insurance, may also impact the premium amount. The more comprehensive the coverage, the higher the monthly premium is likely to be.

2. Truck Details

The specifics of your commercial truck directly influence insurance costs. Factors such as the truck’s make, model, year, value, and weight can all impact the premium. Newer or more valuable trucks typically command higher premiums due to the increased cost of repairs or replacement. Similarly, heavier trucks may be subject to higher premiums as they can potentially cause more severe damage in accidents.

3. Driver History

Insurance companies consider clean driving records and experience as critical factors in determining commercial truck insurance costs. The driving records of all drivers associated with your business, including accidents, traffic violations, and license suspensions, are assessed. A history of accidents or violations can result in higher premiums, as it suggests increased risk and potential liabilities for the insurer.

4. Driving Radius

The distance and regions in which your commercial truck operates also impact insurance costs. Trucks that primarily operate locally tend to have lower premiums compared to those traveling long distances or crossing state lines. Increased mileage and exposure to unfamiliar territories can elevate the risk profile and subsequently influence the monthly premium.

5. Deductibles and Limits

The deductibles and coverage limits you choose can affect the cost of your commercial truck insurance. A higher deductible, which is the amount you are responsible for paying out of pocket in the event of a claim, can lead to a lower monthly premium.

Conversely, lower deductibles provide greater financial protection but typically result in higher premiums. Similarly, selecting higher coverage limits will increase the premium due to the increased level of protection provided.

6. Business Factors

Specific business-related elements can also impact the cost of commercial truck insurance. Factors such as the size and nature of your business, the number of trucks in your fleet, and the overall safety measures implemented can influence pricing. Insurers assess your business’s risk profile and determine the premium accordingly.

It is important to note that commercial truck insurance costs can range significantly, with monthly premiums typically falling between several hundred to several thousand dollars. To obtain an accurate estimate for your specific situation, it is advisable to consult with insurance professionals who can assess your unique needs and provide you with tailored quotes.

Get a Quote Today!

Commercial truck insurance is a critical investment for trucking companies and truck owners, providing protection against potential financial losses resulting from accidents, damages, or legal liabilities. The cost of commercial truck insurance can vary significantly based on several factors. Obtaining a quote allows you to find the right policy tailored to your business needs.

While gauging the monthly costs, it’s crucial to know what drives them. Explore our article on common causes of commercial truck insurance claims to gain insights into the factors that can impact your premiums.

As a trusted and experienced company in the industry, Strong Tie Insurance understands the unique needs of commercial trucking operations. Get in touch with Strong Tie Insurance today to discuss your insurance needs and receive a quote!