The importance of commercial truck insurance cannot be overemphasized. It plays a very important role in safeguarding your investment. However, as a truck owner who’s yet to safeguard your mobile buddy from certain risks, you might want to understand this insurance better, including the cost of coverage.
So, to provide you with up-to-date information about this insurance, we have decided to tailor this article to the cost of truck insurance. Hence, answer your question, “How much does commercial truck insurance cost?”
We have dedicated our resources to ensuring we provide you with adequate information you might need concerning the price of commercial truck insurance. So just stick around while we walk you through this article.
What is Commercial Truck Insurance?
Let’s start by understanding the meaning of commercial truck insurance. This is a type of insurance that covers the liability, property damage, and other risks that come with owning a commercial truck.
Commercial truck insurance is required by the law, though the requirements can vary, depending on where you reside.
Remember, we are still focusing on the cost of commercial truck insurance, but let’s not forget that there are certain factors that affect the cost.
Consequently, we have listed and discussed those factors below. Check them out.
Factors that Affect the Cost of Commercial Truck Insurance
The following are the factors that influence commercial truck insurance costs:
- Type of truck
- Value of the truck
- The driving record of the driver
- Location of the business
- Goods being transported
- Number of trucks being insured.
1. Type of Truck
The type of truck is one of the major factors that affects the cost of truck insurance. Let’s say, for instance, that a semi-truck will generally cost more to insure than a delivery van.
This is because semi-trucks are more expensive to repair or replace if they’re damaged, and they’re also more likely to cause serious damage or injury if they’re involved in an accident. So, the type of truck you’re insuring will have a big impact on the cost of your policy.
2. Value of the Truck
When purchasing insurance for your truck or trucks, it’s important you put their worth into consideration. This is because insurance companies take into account the value of your truck when carrying out their calculations.
A truck that’s worth more will cost more to insure. This is because it will be more expensive to repair or replace if it’s damaged.
3. Driving Record of the Driver
This is another major factor that you have to consider when purchasing insurance. As a driver or truck owner, your driving history will come into play when securing truck insurance.
Let’s say, for instance, that if you are a driver with a history of accidents or traffic violations, there is a higher chance that you will pay more for your commercial truck insurance compared to drivers with a clean record.
The place where your business is located also affects the cost of commercial truck insurance. Let’s look at it this way: businesses in areas with high crime rates certainly will pay more for their insurance than businesses in safer areas.
5. Goods Being Transported
What type of goods are you moving? Are they risky? Are they very expensive? These questions come into play, and they also affect the cost of your insurance policy.
Let’s consider this example: when you are transporting materials of a hazardous nature or high-value goods, you will pay a higher premium than those who are transporting goods that are less risky or valuable.
6. Number of trucks being insured
The number of trucks a business is insuring can also affect the cost of insurance. Generally, the more trucks a business insures, the lower the cost per truck will be.
This is because insurance companies offer discounts for insuring multiple trucks. Let’s now consider the cost of commercial truck insurance.
How Much Does Commercial Truck Insurance Cost?
The average cost of commercial truck insurance can vary depending on many things or factors, like the type of truck, type of business, etc. After carrying out due research, we have established that the cost of commercial truck insurance can vary widely.
It’s a bit difficult to quote the cost of commercial insurance due to certain factors that we have discussed above. However, to make it easier for you, we have provided you with the costs of the different types of commercial truck insurance below.
Types of Commercial Truck Insurance and Their Costs
The following are the types of commercial truck insurance and their respective costs:
- Liability insurance
- Physical damage insurance
- Cargo insurance
- Non-trucking liability insurance
- Bobtail coverage
- Uninsured and underinsured motorist coverage
- Trailer interchange insurance.
Overview of the Types of Truck Insurance
1. Liability Insurance
Average Monthly Premium: $1000
Description: Liability insurance is the most expensive type of commercial truck insurance. This is because this type of insurance covers legal fees and damages in a situation in which you’re sued after an accident.
There are certain factors, such as the goods being hauled, the type of truck, etc., that affect the cost of liability insurance.
For instance, assuming you are a new driver who is carrying a large truck hauling hazardous materials, you are more likely to pay a higher premium.
2. Physical Damage Insurance
Average Monthly Premium: $200 to $500
Description: This type of insurance covers and protects the damage to your truck and trailer. This damage could be from weather, accidents, or even theft.
The value of your truck and the deductible play a major role in determining the cost of this insurance.
3. Cargo Insurance
Average Monthly Premium: 1% to 3% of the cargo’s value
Description: This type of insurance takes care of the cargo that is being hauled by your truck. The cost of this insurance highly depends on the value or worth of the cargo.
This insurance normally costs around 1% to 3% of the cargo’s worth. Now, if you are hauling cargo that’s valued at $500,000, then you will likely be required to pay $5000 to $15000 monthly.
4. Non-Trucking Liability Insurance
Average Monthly Premium: $100 to $200
Description: There are times when you may not be operating your truck and may need to park it. That is what is called non-trucking liability insurance.
This type of insurance is generally less expensive than other types of commercial truck insurance.
5. Bobtail Coverage
Average Monthly Premium: $50 to $100
Description: This is a type of liability insurance that covers you when you’re operating your truck without a trailer attached.
It is always required by trucking companies, and it only covers your liability expenses and not any physical damage to your truck.
6. Uninsured and Underinsured Motorist Coverage
Average Monthly Premium: $25 to $50
Description: In a situation in which you happen to be involved in an accident with a driver who does not have insurance coverage, this insurance covers the costs of the accident.
7. Trailer Interchange Insurance
Average Monthly Premium: $20 to $40
Description: This type of insurance is for when you’re hauling a trailer that’s owned by someone else. It could be a trailer that you rented from a leasing company.
Trailer interchange insurance usually costs around $20 to $40 per month, and it covers liability for any damage that occurs while the trailer is in your possession.
Keep in mind that you’ll also need physical damage insurance for the trailer itself.
Steps for Choosing Commercial Truck Insurance
- Research providers and get quotes
- Compare coverage options and discounts
- Evaluate customer service reputation
- Consider digital tools and resources
- Weigh cost and value
- Choose the best provider for your needs.
FAQs on How Much Does Commercial Truck Insurance Cost?
What is the difference between commercial truck insurance and personal auto insurance?
Commercial truck insurance covers more risks than personal auto insurance, including cargo, roadside assistance, and more.
Is commercial truck insurance mandatory?
Yes, commercial truck insurance is required for most commercial vehicles.
What coverage is required for commercial truck insurance?
Most states require liability insurance and physical damage insurance for commercial trucks.
What additional coverage is available for commercial truck insurance?
Additional coverage options include cargo insurance, roadside assistance, and workers' compensation.
How much does commercial truck insurance cost?
The cost of commercial truck insurance varies widely, based on factors like driving history, type of truck, and more.
Commercial truck insurance costs are influenced by various factors, which is why it is important that you consider these factors before making a decision.
Well, we all know that the cost might not be so friendly, but we can’t deny the fact that commercial truck insurance is necessary to protect your business.
Are you ready to purchase commercial truck insurance yet? Well, we at GETIMMUNIFIED wish you the best as you embark on this wonderful journey.