What Does Commercial Truck Insurance Cost?

A truck driver with gray and blue uniform standing beside a semi-truck to symbolize the cost of truck insurance.In 2021, there were more than 500,000 large truck accidents in the United States, showing why trucking insurance matters. Whether you own a single truck or manage a fleet, securing high-quality insurance is a must.

Here, you can find answers to your questions about commercial truck insurance costs, important factors that impact your insurance rates, and much more.

What Is Commercial Truck Insurance?

Commercial trucking insurance is a special policy that protects trucking companies and drivers in case of accidents or injuries. It includes liability insurance to protect against legal claims and focuses on safeguarding the business itself and the truck drivers.

These policies can help with accidents, injuries, property damage, lost cargo, and more expenses. This is important for keeping your trucking business financially secure and running smoothly.

How Much is Commercial Truck Insurance?

The cost of commercial truck insurance can vary from state to state and depends on several factors. Your choice of coverage and the nature of your trucking operations impact cost. This includes the type of vehicle you drive, type of cargo you carry, your age, coverage requirements, driving record, and more. For instance, a perfect driving history can mean lower premiums, reflecting driver safety.

Commercial truck insurance costs can vary significantly based on these factors and the coverage options you select. For example, some types of businesses are required to have specific liability limits to meet state and federal regulations. Also, opting for comprehensive and other optional coverages may result in higher costs but more protection.

Factors That Affect Commercial Truck Insurance Rates

Rates take several factors into account. Companies consider these factors when calculating costs for individuals and trucking business owners.

Commercial trucking insurance rating factors may include:

  • USDOT Compliance: Review USDOT (United States Department of Transportation) regulations. Keeping correct coverage and a violation-free record is vital to managing rates.
  • Driving Record: Your driving history can affect your costs. Be aware that even small accidents in the past may have an impact. Truck drivers should maintain a clean driving record to show their safety on the road.
  • Type of Cargo: The type of cargo you transport affects rates. Moving baked goods is safer than moving electronics due to lower risk of theft and other dangers. Evaluating value and limits is important, as they directly impact costs.
  • Truck Type and Condition: The condition and age of your truck also matter. Older, poorly maintained trucks tend to have higher rates. On the other hand, driving a new truck with advanced safety features can lead to better rates.
  • Geographical Location: Insurance rates vary by state and region, with higher premiums in areas prone to heavy traffic, severe weather, or higher accident rates. 
  • Distance Your Trucks Cover: Long-haul routes typically have higher insurance costs due to increased risk exposure, while local or regional routes may qualify for lower premiums.
  • How Long Your Company Has Been Operating: Established trucking businesses with a proven track record of safe operations often receive lower rates than new companies with little to no history.
  • Financial Factors: A strong credit report, favorable payment terms, and a willingness to assume a higher deductible can all contribute to lower insurance rates.

How to Get Affordable Commercial Truck Insurance

Finding affordable truck insurance is important, but it's crucial to also get coverage tailored to your specific trucking needs.

Here are some ways you can secure well-rounded protection without breaking the bank:

  • Focus on safety measures while keeping expenses down. To achieve this, ensure your drivers have clean records, provide training, and use safety-enhancing technologies in your fleet.
  • Be aware of federal and state regulations and the relevant authority for motor carriers that may impact your coverage decisions.
  • Many insurers offer discounts for paying the full premium upfront rather than in monthly installments. This approach also eliminates finance charges or administrative fees that may be added to monthly payments.
  • Participating in defensive driving courses, maintaining a clean driving record, and using dash cams can all lower insurance rates by reducing risk. Insurance companies often provide discounts to drivers and fleets that demonstrate a strong commitment to safety.
  • Leasing onto a motor carrier can significantly reduce individual insurance costs since the carrier typically provides primary liability and cargo coverage.
  • Shopping around and comparing multiple insurance providers can uncover industry-specific discounts, bundling options, and loyalty programs that help lower premiums.
  • Review your policy details to optimize costs and ensure they meet your specific needs. Aligning costs with business goals may mean reviewing your coverage limits and deductibles.
  • GEICO may also offer discounts and other ways to save, like paying for your premium in full.

While looking at your options, keeping coverage that meets your requirements is important. If your current insurance does not fit your business needs and budget, contact us for personalized help.

Types of Truck Insurance Based on Operating Authority

One of the most significant differences between operating a commercial truck under your own authority and leasing onto a motor carrier is the way insurance requirements are structured.

Independent owner-operators must secure comprehensive coverage, including primary liability, cargo, and physical damage insurance, to comply with federal and state regulations. In contrast, leased drivers typically have their primary liability and cargo insurance provided by the carrier, reducing upfront costs, but potentially limiting their control over policy terms and coverage options.

Operating under your own authority

There are many advantages to be had by independent commercial truck drivers, but it's important to keep in mind that you'll also be personally responsible for all of your insurance needs, including:

  • Commercial Auto Liability Insurance: Covers bodily injury and property damage caused by your truck in an accident—required by federal and state regulations.
  • General Liability Insurance: Provides coverage for third-party injuries and property damage that occur during business operations outside of driving—such as at loading docks or offices.
  • Cargo Liability Insurance: Protects against financial losses from damaged, stolen, or lost freight while in transit or under your supervision.
  • Workers' Compensation or Occupational Accident Insurance: Takes care of medical expenses and lost wages for work-related injuries, with workers' compensation being mandatory in some states and occupational accident insurance serving as an alternative for independent contractors.
  • Physical Damage Insurance: Pays for repairs or replacement of your truck and trailer in cases of collisions, theft, vandalism, or natural disasters.

Leasing with a motor carrier

Conversely, teaming up with a motor carrier can significantly reduce your insurance costs, as they'll take care of the bulk of insurance coverage. Still, you'll be responsible for certain protection such as:

  • Workers' Compensation or Occupational Accident Insurance: Since leased drivers are considered independent contractors rather than employees, they must secure their own coverage for work-related injuries, unless the motor carrier provides a policy.
  • Physical Damage Insurance: Because the truck is typically owned or financed by the driver, they're responsible for insuring it against damage from collisions, theft, vandalism, or natural disasters.
  • Non-Trucking Liability Insurance: This covers liability when the truck is used for personal or non-dispatched activities, as the motor carrier's insurance only applies when the driver is under dispatch.

Get Your Personalized Commercial Truck Insurance Quote Today

Caring for your commercial trucking business is our priority. At GEICO, we understand the unique challenges and financial impacts of insuring your fleet. Our commitment is to help you find the most cost-effective and comprehensive insurance solutions tailored to your needs.

With the evolving landscape of trucking insurance, making informed decisions is essential. GEICO provides insurance coverage for owner operators, private carriers, and more.

If you are looking to insure your box truck or semi-truck, consider reaching out to GEICO. Our team of experts is here to assist you every step of the way. Contact us today for a personalized quote that protects your investments and is within your budget.