How Much Does Owner Operator Insurance Cost

Insurers consider several variables when computing truck insurance premiums. The rates vary depending on your motor carrier classification, hauled freight, truck model, business tenure, and operating authority. However, most owner-operators pay around $9,000 to $12,000 per annum to insure one truck. This amount meets the FMCSA-mandated truck insurance coverage. 

Factors That Affect Owner-Operator Insurance Premiums

Truckers can get a good idea of how much to set aside for owner-operator insurance by assessing the following factors:

• Freight: Truckers hauling specialty freight typically pay more for insurance than those that haul general freight and common household goods.
• Operating Authority: Owner-operators hauling under their own authority must shoulder all of the minimum insurance requirements mandated by the FMCSA.
• Business Tenure: Trucking companies with a robust client base, positive cash flow, and excellent credit history often get more competitive insurance rates.
• Truck Model and Brand: Insuring brand-new, high-end trailers and tractors might set your company back by over $10,000 in insurance every year.
• Motor Carrier Classification: Insurance providers classify trucking companies based on the vehicles they use to haul loads.

Keep in mind that insurers follow different insurability rates. You will likely get varying insurance rates and computations, so make sure to consult with at least three to four insurance providers and sort through the most cost-efficient offers.

Moreover, don’t blindly sign up for the cheapest insurance rates on the market — truck insurance goes beyond affordable premiums. You must compute your trucking company’s insurance needs, identify the most significant road risks your drivers face, then assess which policies offer the most suitable protection.

Are you having doubts about whether your business can afford trucking insurance? Assured Standard has you covered. Check out our helpful tips on how owner-operators can save on their premiums.