Semitruck Insurance: Providers, Coverage & Costs

Semitruck insurance, also called owner-operator or commercial truck insurance, is a blanket term for a collection of policies for truck drivers. Many of these policies cover truckers’ legal liabilities in different situations, such as hauling cargo or nonbusiness driving. Owner-operators can expect to pay between $8,000 and $12,500 per year for truck insurance.

Whatever commercial truck insurance policies you need, you want to work with a company that understands your risks and the regulations in your industry. As a top insurer, Progressive Commercial can help you find an affordable policy that fits your specific needs. Visit its website to get a quote and receive proof of insurance within minutes of completing a policy application.

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Top Semitruck Insurance Providers

Progressive Commercial

Progressive Commercial is the ideal insurer for owner-operators who want discounts on top of already low rates. It offers a long list of discounts for their truck insurance customers, reducing rates for having a commercial driver’s license (CDL) for two years, being in business for three years, or paying in full at the start of a policy. As the business division of the nation’s third-largest commercial auto insurance provider, Progressive Commercial has plenty of experience getting truckers fast, affordable coverage they need.

Lancer Insurance

Lancer Insurance is the right commercial truck insurance company for long-haul truckers who want to keep all of their essential policies with one carrier. It offers a commercial package for owner-operators and fleets with up to 10 power units that combines liability, physical damage, general liability, and cargo coverage so that policyholders only have to deal with a single bill, renewal date, and claims adjuster. Plus, Lancer keeps policyholders abreast of regulatory updates and safety best practices, even offering onsite safety visits to help with driver training and loss prevention.

Commercialinsurance.net

Truckers who have been declined by other insurers should try Commercialinsurance.net. As a referral service, Commercialinsurance.net works with more than 200 insurance carriers, agencies, and brokerages, many of which can cover hard-to-insure businesses. Truckers who use this service also get help comparing quotes and coverage from a company representative who then connects you directly to an agent who can complete your purchase. Because Commercialinsurance.net works with so many carriers and brokers, most truckers see the carriers’ best price on their semitruck insurance policies.

CoverWallet

Tow truck drivers can look to CoverWallet for affordable commercial truck insurance. Because it’s an insurance brokerage, CoverWallet can quote multiple carriers at the same time, including CNA, Liberty Mutual, and Chubb. This increases your chance of finding all the policies you need at a fair price. The starting premium for a package that combines premises liability, nontrucking liability, and physical damage coverages is $500 per month. For another $100 per month, you can add bailee’s coverage, motor truck cargo, and an installation floater.

HUB International

HUB International is the best choice for truckers with routes throughout the United States and Canada. Not only can HUB cover your business, but it offers member benefits that include a 24/7 roadside assistance program. For just $399 per year, truckers get coverage for tows, tire changes, replacement parts, and more. HUB International is a huge global property and casualty insurer with a team of specialists dedicated to insuring the transportation industry. It offers a wide array of policies for owner-operators, motor carriers, and towing businesses of all sizes.

Types of Truck Insurance

Truck drivers need several types of commercial truck insurance coverages; however, the coverage you need depends primarily on your owner-operator status. There are two types of statuses: owner-operators under lease to a motor carrier and owner-operators working under their own authority. An owner-operator under a permanent lease with a motor carrier usually has some insurance needs covered by the motor carrier.

Most Common Types of Truck Insurance

General Liability Insurance

General liability insurance, sometimes called public liability insurance in the trucking industry, covers third-party bodily injuries and property damage that are common to most businesses and aren’t related to truck driving. For example, general liability covers injuries a client sustains if he slips in your garage but not if you run him over with your rig.

Owner-operators with authority, freight forwarders, and motor carriers are required to carry public liability insurance by law. However, the coverage is a good idea for any business owner because it pays for a number of common business risks. Drivers under lease do not usually need general liability insurance as most are covered by the motor carrier’s policy.

Trucking Liability Insurance

Trucking liability insurance, also known as primary liability, pays for injuries and property damage you may cause others when operating your truck. Interstate truckers who haul nonhazardous goods are federally mandated to have a minimum of $750,000 of truck liability insurance. Intrastate truckers have to carry the minimum as mandated by their state’s laws.

Trucking liability policies usually require every truck to be scheduled or listed on the policy. Insurance companies will not pay claims if the truck is not scheduled.

Nontrucking Liability Insurance

Nontrucking liability insurance covers damages and injuries to third parties that occur when you’re driving your truck for nonbusiness purposes, such as running personal errands. If you have a truck accident when you’re not working, nontrucking liability pays for the other person’s medical bills and property repairs.

This coverage is primarily for drivers under a lease with a motor carrier. Even though they typically are covered by their motor carrier’s general liability insurance, that policy is only for business activities like hauling cargo, dead-heading, or traveling for maintenance. Drivers still need nontrucking liability insurance to cover nonbusiness driving.

Bobtail Insurance

Bobtail insurance is liability insurance that covers you and your semitruck when you’re driving for business but not hauling a load, like when you’re traveling between jobs. The policy pays your legal bills if someone sues after an accident. Motor carriers often require leased drivers to carry bobtail insurance.

Some examples of accidents that trigger bobtail insurance include accidents:

• On the way to pick up your first load
• After you drop off a load and are on your way to pick up the next
• On your way home after a delivery

Bobtail insurance is often confused with nontrucking liability coverage. Both cover gaps in the liability insurance commonly provided by motor carriers. However, bobtail insurance covers business-related driving, whereas nontrucking is for personal driving.

Physical Damage Insurance

Physical damage insurance pays for damages and repairs to your truck caused by certain covered perils, including accidents, natural disasters, theft, and vandalism. It’s not legally required, but it is recommended for all drivers. Plus, most lenders require physical damage insurance for financing.

Physical damage insurance comes in two parts:

1. Collision: Pays for damage to your rig when it collides with another vehicle.
2. Comprehensive: Pays for damage caused by most other perils, including theft, hail, vandalism, and fire.

All owner-operators need physical damage insurance to protect their investment in their trucks, and this includes drivers under a lease. Most motor carriers’ liability insurance extends to drivers, but that doesn’t cover physical damage to the driver’s truck.

Motor Truck Cargo Insurance

Motor truck cargo insurance covers your responsibility for the cargo you carry, typically paying out when it’s lost or damaged. The coverage is not a legal requirement, but it is recommended for all owner-operators and for-hire motor carriers.

Common triggers for motor truck cargo insurance include:

• Fire
• Collision
• Theft
• Water damage
• Equipment breakdown
• Striking of a load

Workers’ Compensation Insurance

Workers’ compensation insurance is a state-mandated coverage that pays employees’ medical costs and lost wages if there are work-related illnesses or injuries. Typically, only motor carriers and owner-operators with employees have to get workers’ compensation, but some states may require coverage for business owners in high-risk industries.

Depending on state law, injuries covered by workers’ compensation typically include:

• Traumatic injuries after a truck accident
• Repetitive stress injuries from loading and unloading cargo
• Work-related illnesses from exposure to harmful chemicals

Which policies you need mainly depends on your status as an owner-operator. Owner-operators working under their own authority generally need all of these semitruck insurance policies. Truck drivers working under a lease need to look at their contracts to determine what coverage they need.

Additional Semitruck Insurance Coverages

In addition to the primary policies for owner-operator truck drivers, there are several supplemental coverages you may want to add to your policy for your specific circumstances. Some of these coverages can be added to your primary policies through riders, while others may need to be purchased separately.

Trailer Interchange Endorsement

Trailer interchange insurance pays for physical damage you cause to another person’s trailer. It is important for truckers and motor carriers that regularly enter trailer interchange agreements. This endorsement is usually added to a liability policy to cover damage caused by fire, theft, explosion, collision, or vandalism.

Hazmat Truck Insurance

Hazmat truck insurance isn’t always a separate policy or endorsement, but it’s worth noting that hauling hazardous materials is strictly regulated. Federal law increases the mandatory minimum liability coverage to $1 million for any trucker hauling hazardous materials like fuels, chemicals, or fertilizers.

Livestock Cargo Insurance

Hauling live animals creates a unique set of risks, including the possibility that your cargo suffers an injury, escapes confinement, or dies en route. These risks are typically excluded from standard truck insurance policies and make a specific livestock cargo policy necessary for drivers who transport animals. Policies typically pay for dead and injured livestock as well as carcass removal.

Trucking Umbrella Insurance

The amount of damage a semitruck can cause means claims often exceed your truck liability limits, and this makes trucking umbrella insurance a valuable coverage. Like other commercial umbrella policies, this policy extends the limits of underlying liability policies. If a claim costs more than what your other insurance covers, umbrella liability pays the rest.

Uninsured & Underinsured Coverage

Uninsured and underinsured motorist insurance covers your costs after an accident with another driver who is either uninsured or whose limits aren’t high enough to cover your damages. It’s also the least expensive coverage but well worth the cost if you end up needing it.

Commercial Truck Insurance Requirements Examples

Source: Federal Motor Carrier Safety Administration (FMCSA).

Insurance Filing Requirements

Truckers applying for certain authorities, namely motor carriers, brokerages, and freight forwarders, must demonstrate they have the appropriate insurance by filing with the FMCSA. Federal filings are often required for interstate trucking, hauling hazardous materials, for-hire trucking, and for-hire people transport.

In addition to federal filings, truckers may also have state-specific commercial truck insurance requirements. For instance, Alabama, Arkansas, Louisiana, Mississippi, and Pennsylvania require certificates of insurance (COI) when you drive an overweight vehicle, carry an overweight load, or own an oversized truck or trailer.

Commercial truck insurance requirements are difficult to navigate, so it makes sense to work with a carrier like Progressive Commercial that can help you with federal and state filings.

Semitruck Insurance Costs

Commercial truck insurance average costs vary widely because there are several different coverages truckers may need. Truck drivers’ insurance costs can also vary due to ownership status. For leased owner-operators, annual semitruck insurance costs from $1,500 to $2,000. Owner-operators with authority pay between $8,000 and $12,500 each year.

Semitruck Insurance Costs by Insurance Type

Factors That Impact Semitruck Insurance Costs

Semitruck insurance costs can vary widely because insurers evaluate many factors when they determine premiums. As with all small business insurance, how much your truck insurance costs depends on how your insurer weighs these factors, such as:

• Ownership status: If you are an owner-operator on a permanent lease, the motor carrier generally covers your public liability, which greatly reduces your overall insurance costs. However, owner-operators with their own authority pay for their general liability.
• Cargo type: Risks, and therefore premiums, typically are much lower if you’re hauling hay compared to hauling a hazardous material like fuel.
• Weight of freight: Heavier loads usually translate into higher premiums.
• Driving distance: The farther you travel, the greater the risk of an accident, and that impacts your premium.
• Truck value: Physical damage premiums are a percentage of the truck’s value, so more valuable trucks cost more to insure.
• Type of physical damage coverage: Insuring for your truck’s actual cash value (ACM) results in a higher premium, but the stated amount coverage is based upon your estimated value. This option typically costs less.
• Credit history: Insurers check credit scores and history to help determine if you’re a good risk. They see a poor credit report as an indication you may cost them money and adjust your premium accordingly.
• Loss history: Insurance companies often decrease premiums for truckers who file few claims.
• CDL experience: The more experience you acquire after obtaining your commercial driver’s license (CDL), the less risk you present to an insurance company. This is typically reflected in low premiums.
• Deductible amount: Higher deductibles mean lower premiums. If you can afford to pay more out of pocket on a claim, then you might want to raise your deductible.
• Coverage limits: Policy limits are the amount the insurer pays for claims. Opting for high limits translates into higher premiums because the insurance company wants to cover the potential cost to them.

Bottom Line

Getting the best semitruck insurance for your business requires focusing on value, not price. The cheapest policies are not often the best. Plus, insurance coverage that is too low can hurt your business if you’re driving under your own authority because it can prevent you from getting jobs with freight brokers. Owner-operators who want the appropriate coverage should work with an agent with experience in truck insurance.

For more guidance on finding the right semitruck insurance, contact the experts at Progressive Commercial. Its team takes the time necessary to analyze your business needs and make sure you find an affordable coverage option. It even offers discounts so you can save money without sacrificing value and provides proof of insurance within minutes of completing a policy application. Visit its website and get a free, no-obligation quote in just a few seconds.

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