California is a prominent state on the western coast of the United States that is industrially diverse and highly developed. Due to the establishment of various businesses, this area has attracted investors and expanded the number of international settlements. Due to the rise in import and export demand, trucking companies in California are currently in great demand.
These trucking companies efficiently and efficiently convey vast volumes of goods around the United States, Mexico, and Canada. They include superior storage and warehousing facilities that safeguard your packages and prevent their loss. Few trucking businesses offer door-to-door delivery services and have strong customer support personnel that are always available to resolve client disputes or questions.
According to the Department of Motor Vehicles, there are 640,445 active Class A and Class B commercial driver's license holders in California alone. As per the state Employment Development Department, there are now just 140,000 jobs in "truck transportation" in the state, making it in high demand.
Local truck drivers and new businesses are required by California law to maintain a certain amount of liability insurance. How much you need depends on the nature and location of the freight you transport.
If you do not cross state lines and your vehicle has a GVW of above 10,000 pounds, you are required to obtain a CA Intrastate ID Number (T#) and be insured up to the following levels:
| $1,000,000 | Liability Insurance (Oil Transport) |
| $5,000,000 | Liability Insurance (Hazmat) |
| $300,000 | Liability Insurance (Household Goods) |
| $750,000 | Liability Insurance (General Freight) |
| $20,000 per vehicle $20,000 per catastrophe | Cargo Insurance (Intrastate Household Goods Movers & Interstate Contract Carriers) |
Comprehensive insurance requirements are imposed on truck drivers who travel to various states. You must also comply with all FMCSA requirements regarding semi-truck insurance. Federal liability limitations are typically $750,000 or $1,000,000.
Your insurance agent must submit specific filings to both California and the USDOT. Your insurance agent or company should handle these files on your behalf. These forms demonstrate to the government that you have met all DOT truck insurance requirements. They must be submitted prior to receiving authorization. Common forms include:
Other coverages you may require include:
| Trucking Primary Liability Insurance | This is the primary coverage that all truck drivers must carry. All state and federal regulations require it. It covers the third party's bodily injuries and property damage if you are responsible for an accident. It may also include medical payment coverage and noninsured/underinsured coverage. |
| Cargo Insurance | This covers the contents of your trailer. The Federal Motor Carrier Safety Administration (FMCSA) does not mandate this coverage, but most for-hire interstate owner-operators will urge you to get one. If you lack it, they will not hire you. Normal cargo insurance limits are $100,000. However, you may require a larger limit if you transport especially valuable items. |
| Bobtail Insurance | This coverage applies when you drive your truck without a trailer. If you operate a truck under your own control, you will require this coverage. If you lease a vehicle from a motor carrier, you can determine whether this or other coverages are required in your leasing agreement. Likely, the motor carrier covers only your primary trucking liability insurance, but you must clarify this with them. |
| Non-trucking Liability Insurance | This coverage protects you in the event of an accident while driving your truck without any cargo. Often, bobtail and non-trucking liability are comparable but subtly different. |
| Trucking Physical Damage | This secures your tractor or trailer in the event of an accident. This coverage is necessary for truck financing. Even if you don't need it, you should purchase one. Your truck is your source of income. If it sustains significant damage in an accident, you may have to pay for repairs out of pocket. Truck repairs are costly, and an accident could threaten the profitability of your trucking company. |
Every type of truck is insurable. You may need to research to acquire coverage for your vehicle, as different insurers offer coverage for various types of vehicles.
The following are examples of common truck types covered by the majority of insurers:
According to research, the annual average cost of commercial vehicle insurance in California is approximately $14,000. This includes coverage for liability, cargo, and physical damage for a single truck. Insurance coverage might range from less than $12,000 to over $16,000.
Consider these rates as benchmarks. Numerous variables affect the cost of coverage, including:
It is advisable to obtain many commercial truck insurance quotes and compare them in order to choose the most affordable insurance.
