If you drive a truck for a living or operate a trucking business, it’s critical to obtain proper insurance coverage. The rates will be more than for a car, but the risks of driving this vehicle will also be greater. Before you compare quotes and calculate the cost of your vehicle insurance, consider the information below.
Trucking Insurance Explained
There are several types of coverage you should look for when insuring a semitruck. The first is primary liability insurance, which will cost you between $5,000 and $7,000 annually and will cover any damages you may cause to others’ property while driving.
The second type of insurance you may need is physical damage insurance, which ranges in price from $1,000 to $3,000 yearly. This covers any damage to your car caused by a collision, vandalism, theft, or extreme weather.
Occupational accident coverage varies from $1,600 to $2,200 per year and pays for work-related injuries, such as medical bills and lost wages.
You’ll also need general liability insurance, which costs $500-$600 each year and covers anything not covered by your primary liability or physical damage policy, including any extra injuries sustained as a result of an accident and property damage as a result of an accident. This coverage is for the company that owns and operates the truck, not the truck itself.
You may also consider obtaining an umbrella policy that covers workers’ compensation, auto liability, and general liability. The cost of this type of insurance ranges from $500 to $700 annually. It is also recommended that you purchase additional coverage for argo coverage, uninsured driver coverage, bobtail insurance (for self-employed drivers), and trailer swapping coverage.
Before getting a quote, it’s always a good idea to speak with a specialist or learn more about the trucker insurance you require.
Is Trucking Insurance Necessary?
To drive on public highways, you must have proper insurance, according to the Federal Motor Carrier Safety Administration (FMCSA). You should have a motor carrier number so that you can get your insurance. For your trucking company to operate legally, you’ll need a certificate of insurance.
If your business employs numerous drivers, however, it may be a good idea to conduct spot checks, monitor and enhance drivers’ skills, and regulate their behavior behind the wheel. Having well-trained drivers with a clean driving record will save you money and safeguard your reputation. It may also enable you to save money on your truck insurance.
The Cost Of Truck Insurance on Average
If you own and operate a truck, you should expect to pay between $9,000 and $15,000 per year for all insurance components, assuming you have a decent driving record. However, truck insurance rates have risen in recent years, and you may have to spend as much as $30,000 a year, depending on the coverage you require and your driving history.
Owner-operators should expect to pay between $2,000 and $4,000 for coverage if their truck is leased from a motor carrier. Certain variables, of course, will have an impact on the premium pricing.
How Is The Cost Of Trucking Insurance Determined?
The cost of your vehicle insurance is influenced by a number of factors. Insurance providers will examine your company’s activities and industry to determine what coverage you require and to determine your rates. Some of the factors that come into play are:
- Cargo: The type of cargo you transport in your truck will influence the insurance risk level and, as a result, the price. In an accident, the more dangerous or heavier your vehicle is, the more damage it can wreak.
- Radius of Operation: The higher the price, the more truck drivers utilize their vehicle and the longer distances they go. Long-haul trucking also means being behind the wheel for extended periods of time, which can make you exhausted and place you at a higher risk of an accident.
- Make and Model: The more powerful and heavier your truck is, the more expensive it will be to insure. A lightweight pickup truck is easier to maneuver and is less likely to cause damage than a heavier one. Furthermore, because the more expensive the truck is, the more expensive the repairs will be, your insurance premiums are likely to rise.
- Background of Driver: A trucker with a spotless driving record will always get a better price than one who has racked up numerous traffic tickets. Even a little speeding ticket can increase the cost of your insurance policy by hundreds of dollars.
- Company Location: Every state has its own set of pricing rules.
How To Lower Your Truck Insurance Costs
Having a clean driving record is one of the best ways to save money on truck insurance. Extra safety training can help keep you out of trouble, avoid speeding tickets, and minimize accidents.
You can also save money by paying your annual premium in full. If your business can afford it, you may want to go with this option to save money. When compared to monthly installments, a single payment can save you up to 20% on your trucking insurance.
Your deductibles will also affect the cost of your insurance. Increase the deductible if you want to save money on your premium in the long run. This means that if something goes wrong, you’ll have more financial responsibility, but your monthly rates will decrease as the insurance company’s risk decreases.
Contact The Trucking Insurance Pros At Burton & Company Today
To explore trucking insurance coverage options, reach out to the highly trained and dedicated staff at Burton & Company online or over the phone. We are ready to answer any questions you may have and get your trucking company covered.
