The trucking insurance rate increases annually and sometimes even quarterly, which makes it difficult for business owners to plan their finances. Trucking insurance is also an unavoidable expense since the FMCSA does not issue an operating authority without proof of cargo and liability insurance. And in case you carry hazardous materials, you have to adhere to strict rules and have to pay a higher cost of insurance.
Types of Insurance
There are commonly two types of insurance in trucking. They are as follows:
It is important to have cargo insurance to protect the goods inside a truck from damage during transit. This is especially important for trucking companies that transport household goods across state lines, as it is required by federal law.
Additionally, states may have additional insurance requirements for specific types of cargo. Trucking companies need to keep in contact with their insurance providers to ensure they are fully compliant with both federal and state laws.
Federally-required liability insurance for trucking companies is based on the weight of the truck and whether it carries hazardous materials. The purpose of this insurance is to protect the public in case of a truck accident. For trucks that weigh 10,001 pounds or more and carry non-hazardous materials, a minimum liability policy of $750,000 is required.
For trucks that carry hazardous materials, a higher coverage limit is required due to the risk and expense of cleaning up potential spills.
For example, a $5 million policy must be carried at all times for trucks that deliver radioactive materials, explosives, gases, or anything that is poisonous by inhalation. Liability policies cover both property damage and bodily injury. If another motorist or pedestrian has hospital bills as a result of an accident caused by a trucker, the liability policy would cover those expenses.
How Much Does Trucking Insurance Cost?
You can look for the best trucking insurance rates in terms of reputation and coverage, but the cost is highly unlikely to be low for any of them. By estimation, leased semi trucking insurance cost is commonly around $3000 to $5000 per annum. Truck owner-operators working under their own authority are charged between $9000-$12000 per annum. New authority owners can even be charged around $16000.
There are also specific coverage types offered by insurance agents for different business needs. These can be:
- Auto liability: avg cost $5,000
- Non-trucking: avg cost $400
- Occupational accidents: avg cost $1,600 to $2,000
- Cargo insurance: avg cost $400 to $1800
- Physical damage: avg cost $1,000 to $3,000
- Workers’ compensation: avg cost of $3,000 to $5,000
- Trucker’s general liability: avg cost $600
Top 10 Commercial Truck Insurance Companies
Although you can’t stop the trucking insurance rate increase, you can choose the best trucking insurance for your business. The best trucking insurance would be one that makes sure that you comply with State, Federal, and Local insurance regulations. It should also be free from hidden costs and should provide you with a plan you need.
Here are the top 10 commercial truck insurance companies:
A fortune 500 company with more than 100 years in the business. Nationwide insurance is one of the go-to insurers for many different industries. Nationwide's quotes may be higher due to its brand value, widespread availability, and unique coverage options. The process to get a quote is through a phone call, and lodging claims can be done online through their website or mobile app.
Insureon is a fintech company that provides a marketplace for commercial insurance in all 50 states. It partners with multiple insurance companies, including Travelers, Hanover, Hiscox, Acuity, AmTrust Financials, Liberty Mutual, and more, to provide customers with quotes for A-rated insurance policies.
The company simplifies the quote discovery process by allowing customers to fill out one form to get quotes from multiple insurance providers. Insureon offers multiple types of commercial insurance, but customized offers may not be available.
Travelers is a national insurance provider that offers both personal and commercial coverage. It is known for its superior customer support and a high percentage of claim settlements, particularly in the Mid-Atlantic states.
The company is criticized for its pricing disparity between property and auto insurance, with deep discounts on auto insurance but higher premiums on property lines. Discounts offered on auto insurance include Multipolicy/Multi-Car and Safe Driver Discounts.
Additionally, the IntelliDrive program, which is available in certain states, allows customers to reduce their premiums by 20% through a 90-day vehicle tracking program.
Allstate provides a number of insurance policies for different commercial risk ventures. The most prominent services they offer are for auto insurance, and they do a good job at giving low-cost coverage with great customer support during the process of claims.
Allstate has a vast network of local and national agents who help consumers develop custom insurance plans, find the right products and assist them in claim settlements. They provide personalization like no other.
Hartford has established a 200-year-old legacy of providing American businesses with insurance. They have a great reputation for their property insurance policies. Moreover, they provide insurance to almost every type of business. Hartford provides online quotations in minutes and you can secure your assets in under 24 hours.
Hartford has a very positive brand image from the 1 million plus small businesses they have provided coverage to. The company offers both commercial and personal lines.
State Farm is one of the best insurance providers in the country, but they are on the expensive side. They rank on top when it comes to customer satisfaction and the physical availability of staff throughout the continental US region. Though single insurance can be expensive, but if you avail of multiple coverages under a singular policy, trucking insurance costs will fall considerably.
State Farm provides discounted rates to well-reputed business owners and good drivers. Those who are looking for additional discounted rates can join the Steer Clear driver program and the Drive Safe & Save program.
Farmers offer its customers over 8 different types of insurance: crime, liability, property, workers' compensation, auto insurance, life, loss control, and umbrella insurance. Though the brand is on the more expensive side, it does provide good value for that cost.
Farmer's Insurance can only be bought from authorized agents. This firm has one of the quickest claims settlement processes and provides a hefty discount for drivers with a good record.
People often say Progressive is the tone-setter for commercial auto insurance in the USA. Their primary focus is on auto insurance, which is why they provide multiple options which are more than other commercial insurers. They provide special auto risks coverage like auxiliary equipment insurance, non-owned coverage, gap insurance, multiple insurer clubbing, and more. They also offer 24/7 support for claims and other related issues.
Progressive is an insurance company that primarily serves truckers by offering specialized services such as Bobtail truck insurance, in-house adjusters, state and federal insurance filing, and a Smart Haul Program that uses electronic logging data to lower premiums. They also have a network of commercial claim specialists and truck repair centers for truck owners to utilize.
Chubb is among the top leaders for commercial insurance in the USA. They provide coverage to a variety of industries across the country. But their services and products are better suited for companies making more than $10 million a year as revenue, looking for an all coverage-based insurance like financial lines, casualty expenses, accidents, employee health, management liability, and more.
They can provide lower insurance costs by providing companies with multiline insurance for the entire business. Chubb has over 48 offices across North America and a massive network of local agents. So, those looking for unique insurance policies should consider Chubb.
Those that have smaller fleets and even single trucks can benefit better by getting their insurance from Sentry, as their main focus is small fleets. They offer personalized services, and their agents are also knowledgeable in terms of smaller fleet needs.
They operate in all 50 states in the US, provide flexible coverage options, and offer better rates for small or singular truck owners. The downside is that there is very limited information available online, you need to work with a local agent, and it is a relatively smaller company with fewer options.
It can be confusing to find the right commercial truck insurance that is right for your business. But a little bit of research can go a long way in finding coverage that suits your needs. Each company specializes in certain types of insurance plans, and you can even consider utilizing a few companies to insure your business operations. A good insurance agent can also go a long way in helping you pick the right insurance.
About the Author: Mubashir Ijaz
Mubasshir Ijaz started his career as a creative writer and digital marketer back in 2016. He has worked under multiple niches and aims to provide readers with a free-flowing, easy-to-understand copy that will provide them with value for their time. He aspires to be a problem solver, and through his extensive writing experience, he aims to provide trucking business owners and employees with informative technological solutions.