With rising prices, it can be a struggle to find affordable commercial truck insurance to suit your company’s needs in terms of coverage. However, the Federal Motor Carrier Safety Administration (FMCSA) won’t let trucking companies operate without insurance, which will come in handy during the Operating Authority or MC Number application process.
Your minimum amount of insurance coverage depends on the type of truck you are driving and the type of goods you transport. Costs can typically range between $300,000 and $5,000,000 a year depending on the amount of risk shouldered by the insurance company.
To protect your business, it may be tempting to go for a cheaper plan with lower coverage limits, but it may not give you enough protection in the event of a worst-case scenario. In addition, it is a good idea to invest in several types of insurance including primary auto liability, physical damage coverage, and bobtail insurance.
According to the FMCSA, the minimum insurance filing requirements for a trucking company is heavily freight type and weight dependent:
Many shippers and brokers prefer a limit of at least $1,000,000 to address the risks of trucking. As a rule, investing in higher coverage limits can be a wiser decision, especially if your trucking company is transporting dangerous materials.
The minimum amount of insurance coverage depends on the type of truck and the type of goods transported. The costs can range between $300,000 and $5,000,000 a year.
The FMCSA requires a minimum of $300,000 for vehicles under 10,001 lbs. carrying non-hazardous goods, $500,000 for vehicles over 10,001 lbs. carrying non-hazardous goods, $1,000,000 for for-hire and private carriers carrying oil, and $5,000,000 for or-hire and private carriers carrying other hazardous materials.
Most shippers and brokers prefer a limit of at least $1,000,000 to address the risks of trucking.
Learn more about what to be aware of when buying commercial truck insurance at Assured Standard!
