Protecting Your Trucking Business: How Much Does Commercial Truck Insurance Average Cost?

Strong Tie Insurance November 15, 2021 Our Blog

All trucking businesses need to safeguard themselves against unforeseen financial losses, hence,  commercial truck insurance California offers is not just a legal requirement for businesses to operate, but it is a valuable investment that keeps businesses from losing lots of money or going bankrupt.

But insurance is an additional cost for your business, and even cheap commercial truck insurance can set you back at least a thousand dollars annually. 

Before spending that much money, it’s important to learn more about where you are investing your precious cash, so you can get your money’s worth and receive the necessary protection your business needs to stay out of trouble.

Find out what you’re actually spending on and how much you have to spend with commercial truck insurance.

What Do You Pay for and Average Cost Estimates?

Commercial truck insurance is an insurance policy that includes various coverage types that aim to mitigate the risks faced by trucking businesses.

Depending on the nature of your trucking business, the risks and hazards vary, so you may have to shell out $1000 to $2000 per month or pay even ten times that amount. 

Learn about the different coverage types to consider that are included in your commercial truck insurance policy, and make the right investment in insuring your truck business.

Primary Liability

Primary liability coverage is a basic requirement for all vehicles to be allowed to run on the roads. It pays for damages your truck causes to others, such as injury to people or damage to property. However, it does not cover your truck and your driver. 

On average, the premium for primary liability costs around $40 to $80 per month, depending on your state.

Physical Damage

Physical damage coverage takes care of your truck. It’s a comprehensive policy that will shoulder the cost of any physical damage to your truck, whether it is due to your negligence or otherwise. 

Such physical damages covered by this policy include fires, theft, vandalism, and other similar damages.

On average, a physical damage premium costs around $300 to $350 per month, ranging from low to full coverage. But depending on the model of the car, the premium can be higher.

Collision

Collision coverage is a type of coverage that compensates you for damages to your truck, and if need be, replaces your truck when you experience a collision accident with another vehicle.

The premium for collision coverage depends on your vehicle and driving history. If you have a history of collision, your insurance provider may charge you higher rates. 

Compared to other coverage types, collision coverage has a pricier premium. But choosing a higher deductible can lower it remarkably.

Cargo 

Cargo coverage refers to the protection of any object that a truck is transporting. The coverage pays for damages or theft of the goods and depending on the service that your trucking business provides, the premium is usually between $40 to $60.

Uninsured or Underinsured Motorists

When you encounter other motorists in an accident, the other party is not always insured or their insurance may not always be able to cover the total cost of your medical fees and damages to your truck. 

An uninsured or underinsured motorists coverage helps you prepare for such instances so that you will have financing even if the other party is found to be at fault.

Unlike other coverage types, the pricing for uninsured or underinsured motorists coverage is expressed in two numbers. The first one is the coverage for bodily injury per person, and the second is the coverage for bodily injury per accident.

So, for a 100/300 policy, you can claim up to $100,000 for one person injured, or you can claim up to $300,000 in total for everyone combined if there are more than three people injured.

On average, this coverage has a premium that ranges from $800 to $2000. It is required in some states while not in others. Check to see what is the minimum coverage for your state before adding this coverage.

Mechanical Breakdown

A mechanical breakdown coverage pays for truck repairs that are unrelated to any road accidents, theft, fire, or vandalism. It’s a normal part of truck maintenance to occasionally experience mechanical breakdowns.

Coverage such as this ensures that you will have an easier time managing the costs for repairs when needed. Compared to coverage types for accidents, mechanical breakdown coverage only costs about $30 to $100 annually, with an average deductible of $250.

On-Hook

An on-hook coverage is one that is used by tow trucks to pay for damages incurred by the vehicle they are towing or transporting.

This type of coverage only covers damages to the towed vehicle and does not include injuries of its passengers and damages of any other objects within the vehicle. The limit of such coverage usually ranges from $10,000 to $250,000, with premiums priced at $350 to $800 on average.

Medical Payments

A medical payments coverage pays for the medical fees of the truck driver and any other passenger who may be within the truck at the time of an incident, which may or may not be caused by you.

Such coverage is not a requirement for commercial truck insurance, but it’s a great addition if your truck often has passengers, such as other staff in your company or customers who tag along on rides. 

A medical payments coverage includes health insurance deductibles and co-pays for a doctor or hospital visits, surgery, and other diagnostic procedures, as well as ambulance and emergency medical technician fees. If a nurse or caretaker is required, this can cover those as well. 

A standard medical payments coverage has limits ranging from $1000 to $25000. Depending on the limit you get, the premium can vary greatly, therefore, it’s highly recommended that you consult your insurance provider and request a quote for your business.

Purchase Commercial Truck Insurance

Ready to purchase commercial truck insurance? Reach out to us and have one of our agents help you choose the best coverage plan for your trucking business. 

With over 20 years of experience protecting trucking companies, Strong Tie Insurance has the best commercial truck insurance California has to offer.

Get a free quote, contact us at Strong Tie Insurance today!