What You Need to Understand About Semi Truck Insurance Coverage?

Strong Tie Insurance November 8, 2021 Our Blog

Every business needs to have reliable cheap semi-truck insurance to protect it against potential financial burdens. As all businesses face risks, there are plenty of insurance types in the market today with varying terms and coverages to suit your unique needs.

Among trucking businesses, there are plenty of commercial auto insurance plans to shop for, and for those who use semi-trucks to operate, there is semi-truck insurance that is specifically designed to protect them.

What is a Semi-Truck?

A semi-truck is a combination of a tractor front and a trailer back to carry freight. Such vehicles are heavy-duty trucks used for transporting heavy loads of goods via land.

What is Semi Truck Insurance Coverage?

As semi-trucks are used to transport large and heavy freight, they are most commonly used for business purposes and will require a special kind of insurance coverage like semi-truck insurance, that will protect not only the heavy-duty vehicle but also the freight it is transporting.

Semi-truck insurance coverage is a type of insurance policy that includes various coverages that aim to protect truck drivers, semi-trucks, and freights. 

Common coverage found in semi-truck insurance include the following: 

Trucking Liability

A trucking liability insurance is primary liability insurance for trucks and semi-trucks. This coverage pays for injuries to others and damages to property caused by you in accidents.

Unlike other coverage types, which may be optional depending on your state or what services your trucking company offers, trucking liability is a basic requirement for you to operate your truck.

Non-trucking Liability

There are times when a truck is used for purposes other than business. In such cases, a motor carrier may require you to purchase a non-trucking liability. Depending on the state you are in, this coverage may include trips home after a drop-off or leaving a motor carrier. 

General Liability

Operating a trucking business involves risks not only pertaining to your semi-truck. For injuries and property damages that are not directly related to operating your truck, general liability coverage will shoulder those within your insurance policy limit.

Bobtail

This coverage protects your truck or semi-truck while it’s not being used to deliver or transport freight.

For example, you’ve dropped off your delivery, and you encounter an incident on the way back to your motor carrier, that would be covered by this type of insurance coverage.

Physical Damage

Most of the coverages mentioned above account for what may happen to your truck in the event of a road accident. Meanwhile, physical damage coverage protects your truck against other potential damages including fires, theft, vandalism, and natural calamities.

Motor Truck Cargo

Trucks and semi-trucks are often used to transport freight or other forms of load. A motor truck cargo coverage takes care of the load while the truck is operating for business.

It shall pay for losses or damages to the freight while the truck is in transit, loading, or unloading.

Uninsured or Underinsured Motorists  

Operating a semi-truck means you will sometimes encounter uninsured or underinsured motorists in accidents. In such cases, the other party will not be able to shoulder the costs of the medical fees for your injuries, repairs for your vehicle damage, and downtime compensation. This means you will not be able to operate or work because of the accident.

An uninsured or underinsured motorists coverage will save you from having to pay for your medical fees and semi-truck repairs out of pocket. Depending on the situation, this may even cover the fees of the uninsured or underinsured party.

Occupational Accident

As a business, taking care of your staff should be a priority. Considering how truck drivers are exposed to high-risk accidents and injuries, occupational accident coverage protects them in case of injury while on the job.

The coverage includes medical fees, as well as income benefits while they are recuperating.

Trailer Interchange 

For businesses that transport freight in trailers that are not theirs, a trailer interchange coverage protects them from physical damages that the trailer in their care might incur.

This is applicable for companies that haul trailers for business, they are often third-party transportation companies, bound by a trailer interchange agreement—transporting freight through a logistics network.

How Much Does Semi Truck Insurance Coverage Cost?

On average, businesses can expect to pay $800 to $12,500 annually for semi-truck insurance. For those who are just starting out or driving a single semi-truck, a cheap semi-truck insurance that meets the minimum liability would suffice. 

However, as your business grows, so as the risks, hence, more coverage will be necessary. Consequently, the rate you pay increases as your policy includes more coverage. The price also depends greatly on the type of semi-truck you use.

For general liability insurance, you can expect to pay anywhere from $500 to $7000 per year. Meanwhile, trucking liability can cost $2500 to $4000 annually per tractor, while non-trucking liability can cost $450 to $5000 per tractor. 

Another costly coverage is motor truck cargo. With about a $5000 limit on average, the expected yearly premium ranges between $500 and $1000. As for physical damage coverage, this will depend on your semi truck’s value at the time of appraisal.

The yearly premium should be 2.5% to 5% of your semi truck’s value. Lastly, Bobtail coverage is cheaper, at $350 to $450 per year.

As a truck company business owner, you may or may not need all the coverage types outlined. Hence, the cost of your insurance premiums can vary greatly depending on which you choose to include in your semi-truck insurance policy.

Purchase Semi Truck Insurance 

Feel secure and safe behind the wheel by getting cheap semi-truck insurance that suits your needs. We have the most experienced agents that would fit you with the insurance policy that best protects your 18-wheeler trucks.

With over 20 years of experience, we can help all trucking businesses, from single truck owners to trucking companies with a fleet of trucks and semi-trucks. 

Reach out to us to avail of insurance plans with flexible coverage. Get a free quote, contact us at Strong Tie Insurance today!