Semi Truck Insurance Cost, Coverage & Quotes

Semi truck insurance, aka owner operator truck insurance, is liability coverage for commercial truck drivers. The cost for this insurance can vary widely. For leased owner operators, semi truck insurance costs range from $1,500 to $2,000 per year. For owner operators with authority, it can cost between $8,000 and $12,500 per year.

At a minimum, semi truck drivers will need liability insurance, which covers injuries or damage to other parties when the driver is at fault. Other related insurance coverage types may be required, depending upon several factors that are unique to the truck driver. Insurance321 can help you find an affordable policy that fits your needs. Get a quote today from an Insurance321 agent.

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Types of Semi Truck Insurance Coverage

There are several types of commercial auto insurance coverages, however what coverage you need, and the related costs of insuring your truck, will depend primarily on your operator owner (O/O) status, which is one of two types: 1) Owner operators (O/O) under lease to a motor carrier and 2) Owner operators working under their own authority.

An O/O under permanent lease with a motor carrier will have some insurance needs covered by the motor carrier; therefore the insurance costs for this driver will be lower compared to an O/O working under their own authority, who is responsible for obtaining their own insurance policy and for paying the related costs.

Here are the 6 most common types of semi truck insurance:

1. Public Liability Insurance

Public liability insurance (aka primary liability insurance) covers bodily injuries and property damage to third parties and is required by the Federal Motor Carrier Safety Administration (FMCSA) for owner operators working under their own authority. For drivers under lease with a motor carrier, it is required but the motor carriers typically provide this liability insurance for you.

• Who Needs It: O/O with authority, motor carriers to cover their drivers
• Required: FMCSA requires for O/O with authority, most states require proof of liability insurance before obtaining your commercial driver’s license (CDL).

2. General Liability Insurance

This coverage is for risks associated with doing business other than operating your truck. A general liability policy will protect against many of the risks that primary liability won’t cover, such as slips and falls in your office. Therefore the general liability policy is broader in coverage than public liability coverage.

• Who Needs It: Motor carriers
• Required: Not required by law but may be required for some contracts. Recommended for O/O with authority.

3. Non-Trucking Liability Insurance

This coverage is primarily for drivers under lease with a motor carrier. Although you are covered under the motor carrier’s primary liability coverage, you will still need this non-trucking liability insurance to cover damages or injuries to third parties while driving for personal, non-business purposes.

• Who Needs It: O/O under lease.
• Required: Not required but recommended.

4. Bobtail Insurance

This coverage is often confused with non-trucking liability insurance. It covers you and your semi truck when you are doing business, such as traveling between jobs, but not hauling a load. Bobtail is a term that was originally used to describe a semi truck with no trailer attached, hence the term Bobtail Insurance.

• Who Needs It: O/O under permanent lease to motor carrier.
• Required: Most motor carriers will require bobtail coverage for their drivers on lease.

5. Physical Damage Coverage

This coverage will pay costs for damages and repairs to the truck, including collision, natural disasters, theft and vandalism. This coverage is recommended for all drivers.

• Who Needs It: All owner operators
• Required: Not required by law but if you finance a loan on your rig, your lender will likely require this coverage.

6. Motor Truck Cargo Coverage

Motor truck cargo insurance will cover damaged or lost cargo that you are carrying. It’s important to assess your risk, or have an insurance representative help you, to be sure that this type of coverage is needed.

• Who Needs It: All owner operators
• Required: Not a legal requirement but recommended for all drivers.

Although the motor carrier will provide the required public liability insurance for the truck drivers working under a lease, it’s important for leased owner operators to add the other coverages. Owner operators working under their own authority generally need all these types of semi truck insurance, although the limits will vary.

If you have questions about exactly how much coverage you need, reach out to the experts at Insurance321.

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Additional Semi Truck Insurance Coverage You May Need

In addition to the primary coverage types for owner operator truck drivers, there are some other supplemental endorsements that you may need to add to your policy for certain circumstances. Here are some of the other types of semi truck insurance coverage you may need to complement your primary liability coverage:

Trailer Interchange Insurance

Trailer interchange insurance coverage is for physical damage and is needed when you are carrying someone else’s trailer full of goods and the trucking company that owns the trailer doesn’t have insurance to cover it. This coverage is usually available under either the truckers or the motor carrier’s liability policy.

• Who Needs: O/O under authority and O/O under lease when motor carrier doesn’t provide this coverage.
• Required: Not required but recommended.

Hazmat Truck Insurance

Hazmat is a term that combines the first three letters of two words–hazardous and materials. If you’re hauling hazardous materials, such as fuels, chemicals, or fertilizers, you’ll need hazmat coverage. The limits and cost of coverage will depend upon the degree of risk associated with the hazardous material(s) you are carrying.

• Who Needs It: O/O hauling hazardous materials and with insufficient liability limits on other coverage.
• Required: Not required but recommended.

Livestock Cargo Insurance

Risks of hauling live animals includes injury, escape, or death of the cargo. To protect against this risk, you may need to add livestock cargo insurance.

• Who Needs: Owner operators that need supplemental liability when hauling live animals.
• Required: Not required but recommended.

Trucking Umbrella Insurance

Like other umbrella policies, this trucking insurance type helps cover gaps between policies or in the event your primary liability insurance is too low to cover large expenses, such as legal fees that can surpass your limits.

• Who Needs: Owner operators with gaps in coverage
• Required: Not required but recommended.

Uninsured/Underinsured

This covers you if you’re in an accident and the other driver is at fault and they are either uninsured or their limits aren’t high enough to cover the damages. It’s also the least expensive coverage but well worth the cost if you end up needing it.

• Who Needs: All owner operators
• Required: Not required but recommended.

Workers Compensation Coverage

This insurance coverage would only be needed if you are a trucking company owner with employees. It covers injuries and disability if employees are injured on the job.

• Who Needs: Motor carriers and owner operators with employees.
• Required: Only required for business owners with employees.

While these coverages are not as common as the primary coverage types, you still need to consider your own needs and determine the exclusions and gaps in your primary policy that need to be covered. You can speak with a reputable agency, like the commercial auto insurance experts at Insurance321, to get a better idea.

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Semi Truck Insurance Cost

The cost for owner operator truck insurance can vary widely because there are several different types of coverage that truckers may need. Also, truck insurance cost will vary depending upon ownership status. For leased owner operators, semi truck insurance costs range from $1,500 to $2,000 per year and $8,000 to $12,500 for owner operators with authority.

Typical Costs & Limits of Semi Truck Insurance

Annual premiums can be broken into monthly payments and, unless stated otherwise, limits are per policy period, which is usually one year. Owner operators working under their own authority will be responsible for all insurance coverage, making their annual cost higher than owner operators under permanent lease to a motor carrier.

Although most types of insurance coverage are not required by law, according to Alex Lauderdale, Sr. Editor and Transportation Analyst at EducatedDriver.org:

“An aspiring owner operator will want to be aware of a few things before they start shopping for insurance coverage: The FMCSA mandates the minimum insurance required to operate and expects proof when one is filing for Operating Authority (MC number). The FMCSA also requires a driver to have Public Liability Insurance. PLI is broken into two types of coverage: Bodily Injury and Property Damage. The minimums are driven by types and weight of freight (i.e. non-hazardous [under/over 10,001 lbs], hazardous, etc.) Remember that acquiring the FMCSA minimum doesn’t necessarily mean you are ready to start hauling freight. Think of who your customers will be, what kind of freight you will be hauling, and what minimums are required.”

Factors That Affect Semi Truck Insurance Cost

As will all small business insurance, there are many factors that can affect the cost of semi truck insurance, which is why the total cost estimates for coverage can vary widely. Where you fall in that cost range depends on many things, including these key variables:

• Ownership status: If you are an owner operator on a permanent lease, the motor carrier will generally cover your primary liability, which greatly reduces your overall insurance costs. If you are an owner operator working under your own authority, you’ll pay your own primary liability and supplemental coverages.
• Cargo type: Risks, and therefore premiums, will be much lower if you’re hauling hay, compared to hauling a hazardous material like fuel.
• Weight of freight: Heavier loads can translate into higher premiums.
• Driving distance: The farther you travel, the greater the risk of an accident, which will increase your premium.
• Truck value: The premium for physical damage coverage is often a percentage of the truck’s value. Therefore, a higher value will translate to higher premiums.
• Actual Cash Value vs Stated Amount: In the event of physical damage to a truck or trailer, the actual cash value (ACM) will be the respective market value at the time of the accident. With stated amount valuation, the premium of the policy is based upon the driver’s estimated value. Stated value can result in a lower premium if you provide a low estimated value. However, you bear the risk if your truck is totaled and the stated value is too low to replace your truck.
• Credit history: Insurance companies are increasingly checking credit scores and history to help determine their risk and adjust premiums accordingly. A poor credit report can increase your premiums.
• Loss history: Insurance companies will often decrease premiums with a history of zero claims.
• CDL experience: The more experience you acquire after obtaining your Commercial Driver’s License (CDL), the lower risk you are to an insurance company, and the lower your insurance costs.
• Deductible amount: If you can afford the risk, raise your deductible. Higher deductibles will mean lower premiums.
• Coverage limits: Higher limits on coverage will translate into higher premiums.

All these factors can impact your policy rates and every small business insurance company may rate each factor differently. With such a wide range of costs and determining factors, it can be worth your time to get estimates for your specific needs. The experts at Insurance321 will provide you with a range of estimates from a wide variety of carriers, brokers, and agents. Get a free, no obligation quote today.

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How to Keep Costs Low for Semi Truck Insurance

Insurance is one of the major expenses in the trucking industry, especially for owner operators working under their own authority. Although there are several factors that can contribute to the costs of semi truck insurance coverage,there are some costs that are within your control. Here are some of the ways to reduce your semi truck insurance:

• Package your insurance policy: Bundling all of your coverage types into one package is almost always cheaper than buying separate policies.
• Maintain a good driving record: Insurance companies also like to keep their costs low, which means covering low risk drivers with clean driving records. As an incentive to attract these customers, they offer cheaper premiums.
• Increase deductibles and decrease limits: The amounts of your deductible and coverage limits will directly impact your premium. Consider higher deductibles and lower limits to keep your premium low.
• Make annual payments: Paying your annual payment up front in a lump sum, rather than monthly payments, can reduce your overall premium by 10%, or possibly up to 20%.

As with any major purchase, be sure to compare rates between at least three different companies or use an insurance broker, like Insurance321. The experts at Insurance321 can do the comparison shopping for you. Get a range of semi truck insurance quotes today.

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Where to Get Semi Truck Insurance

Most owner operators working under their own authority will get their insurance through the conventional sources like insurance agents or brokers. An owner operator under permanent lease should get the most basic coverage, such as public liability insurance, through the motor carrier.

Whether you go through an agent, a broker, or trade association, it’s important to get the best coverage at a price you can afford. For help educating yourself on the best insurance coverage, contact the experts at Insurance321. They can get you a quote in as little as four minutes.

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How to Get Semi Truck Insurance Quotes

It’s important to get semi truck insurance quotes from multiple agents from different insurance agencies. But the process can be made quicker if you use a broker that can shop different policies for you and find the best coverage at a price that works for you. The broker can also help with the application process.

While a broker can be a valuable resource, you’ll also need to have a basic knowledge of the coverages you need before shopping policies. A broker can help match you with the right insurer but you’ll need to have the right information that will help determine how much of a risk you might be to the insurer.

Here’s some of the primary information you’ll need to have ready before applying:

• Address and contact information
• Cargo you will be hauling
• Hauling distance (long distance or local radius)
• Claims history (at least the past 3 years)
• Criminal history, if applicable
• Credit report and score (the broker can help with this)

After gathering the information you’ll need to begin getting insurance quotes, you may also benefit by knowing what types of coverage you’d like in your policy. Also, the FMCSA can offer valuable guidance and provide legal insurance requirements, and other information to be sure your truck is legal and ready to go. If you’re ready to get a truck insurance quote, speak to the professionals at Insurance321. Their experts will help you find the right coverage for your business. Getting a quote is free, takes just a few minutes, and there’s no obligation.

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Tips on Buying Semi Truck Insurance

When you’re ready to buy semi truck insurance, be sure to shop smart, look for discounts, and don’t leave gaps in coverage. Even if you’re an experienced truck driver and you’ve been covered by an insurance policy before, the best tip for you is to speak with an expert before you choose your policy.

According to Rosty Gerbilskiy, Commercial Insurance Advisor at CoverWallet:

“When I talk to truckers about buying insurance, the first tip that I give them is to monitor your SAFER information. Knowing your safety rating and remaining proactive to pass safety inspections will keep your insurance rates low. Also, be sure to religiously maintain your log. A good way to do this, and to possibly get a discount on your insurance, is to use an electronic log device (ELD). Finally, don’t skimp on liability coverage. Although the FMCSA minimum requirement is $750,000, most freight brokers won’t hire you for a job unless you have at least a $1 million limit.”

Bottom Line on Semi Truck Insurance

Before purchasing the best semi truck insurance for you, be sure to focus on value, not price. The cheapest policies are not often the best and, if you are an owner operator working under your own authority, don’t buy the minimum limits. Insurance coverage that is too low can sometimes prevent you from getting a job from a freight broker.

For more guidance on finding the right semi truck insurance, contact the experts at Insurance321. Their team will take the time necessary to analyze your business needs, and make sure you find an affordable coverage option. To get a free no obligation quote visit Insurance321 today.

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