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    Average Truck Insurance Cost

    Average Truck Insurance Cost

    How much is a truck insurance policy? Commercial truck insurance costs stagger at an all-time high, considering the current inflation rates and prevalence of road accidents. Truckers pay more for state-mandated coverages nowadays. Note that the increasing average cost of truck insurance compromises the profit margins of most truckers and owner-operators.

    Fortunately, you can work around the costly premiums through proper planning. Prepare your insurance budget ahead of time by staying updated on truck insurance costs and trends. Objectively assess how much you’ll need to continue meeting state-mandated coverages.

    What Is the Average Truck Insurance Cost?

    The Federal Motor Carrier Safety Administration (FMCSA) mandates commercial truckers to carry $750,000 to $5,000,000 worth of coverage, depending on the nature of their business. Most trucking companies fall under the <$1,000,000 bracket.

    If you drive a specialty vehicle for construction or equipment hauling, expect your annual premiums to range from around $7,700 to $10,000 every month. However, transportation truckers will have to pay more. Truckers hauling general transportation goods typically shell out about $10,000 to $15,000 per annum, assuming you don’t carry hazardous items.

    Factors Influencing Coverage Costs

    How much does trucking insurance cost? Various factors affect policy premiums, but they typically depend on the following:

    • Driving Records: Insurers will charge you higher policy premiums if you have already committed multiple traffic violations and carry a significant amount of unpaid balance.
    • Trucking Equipment: Invest in quality equipment that will keep your truck and cargo safe throughout hauling trips. Minimize the risk of road accidents. Insurers might minimize your premium if you demonstrate long-term defensive driving skills. 
    • Vehicle Make and Model: High-value sedans and trucks with a higher market value and more expensive replacement parts cost more to insure. 
    • Claims History: Expect your policy premiums to increase by 45% to 50% following an insured road accident
    • Business Tenure: Startups and SMBs with minimal business experience face a higher risk of failure, so investors and insurers typically charge them more financial products (i.e., loans, insurance).
    • Cash Flow: Insurers might charge you higher premiums if your business cannot demonstrate positive cash flow. Most institutions require at least two to three years’ worth of industry-relevant transactions.

    Different Types of Commercial Truck Coverage

    To get a firmer grasp on the average cost of trucking insurance, familiarize yourself with the different commercial truck policies:

    Motor Truck Cargo Coverage

    Cost: $2,000 - $4,000 per annum

    Motor truck cargo coverage protects commodities and freight from various liabilities, including losses/damages from theft, fire, and vandalism. It remains effective as long as the insured vehicle contains the specified cargo—regardless of whether the trucker is in transit, unloading, or loading. All for-hire truckers should look into this policy.

    Motor Truck General Liability Coverage

    Cost: $7,700 - $15,000 per annum

    All states mandate commercial truckers to carry at least $750,000 to $1,000,000 of motor truck general liability coverage. This policy protects you from third-party liabilities. It generally covers bodily injuries and property damages stemming from covered incidents, such as road accidents.

    However, trucking service providers running state-wide operations should upgrade their policy limitations. Meeting the state-mandated minimum coverage keeps you from getting arrested. However, skimping on insurance to minimize premiums only puts your business, your truckers, and everyone around them at risk.

    Non-Trucking Liability Coverage

    Cost: $360 - $600

    Non-trucking liability provides liability protection when you use your truck for non-commercial purposes, such as filling up on gas, driving to and from the garage, and going to the bank. Look into NTL insurance if you frequently drive outside of business hours.

    Frequently Asked Questions

    Get a better idea of the average cost of truck insurance by reading some questions first-time truckers ask when applying for coverage:

    Is insurance higher on a truck or SUV?

    SUVs and pickup trucks cost more to insure because their massive frame leaves them more prone to road accidents. Also, expect to pay extra if you always drive around with heavy equipment.

    Are pickups expensive to insure?

    Although pickup truck insurance costs more than policies for sedans and hatchbacks, their durable, heavy-duty nature significantly brings down their premiums.

    How much is insurance for a truck monthly?

    Truckers driving specialty trucks can minimize their monthly premiums to around $640, but transport truckers will have to set aside over $980 per month.

    Final Thoughts

    Overall, the ​​average cost of trucking insurance varies on a case-by-case basis. Instead of obsessing over the rising rates, focus on how you can minimize your policy premiums.

    Remember: insurers charge insurable, low-risk clients less. Maintaining clean driving records, hiring qualified truckers, and using high-quality equipment will make a world of difference when insurance underwriters assess your application. 

    Are you having trouble identifying which insurance policy suits your trucking business best? Assured Standard can help! Check out our resources page for comprehensive guides explaining everything you should know about commercial trucking insurance.

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    Assured Standard will protect your business with the right insurance, depending on your needs. Now more than ever, it’s crucial to have the right general liability insurance experts on your side. Protecting the future of your business starts today.
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