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How Much Is Commercial Truck Insurance [Alabama]

How Much Is Commercial Truck Insurance [Alabama]

The average cost of commercial truck insurance in Alabama is $15,610 per year, but this cost varies based on a number of factors. 

Most insurance premiums range from $9,900 to $15,000, with an estimated standard premium of around $13 to $14 thousand dollars each year. This amount depends on the type of merchandise being hauled and how long has the business in question been operational. 

For example, trucks hauling inflammable fuel or chemicals would have greater premiums than trucks hauling furniture or electrical appliances. Similarly, trucks that have been operating for longer durations would have to bear less premiums than relatively new trucks.

The most common cargo type is general freight, which amounts to nearly 71% of the total hauls, followed closely by construction materials/equipment which accounts for 13% of the total goods.

Alabama Truck Insurance Policy Information

Alabama state law regarding truck insurance has some specific requirements that need to be met at all times. New trucks are required to obtain certain levels of liability insurance. The insurance amount is determined by two factors. The first factor  is the type of freight that is being hauled., while the second factor is related to the destination where these goods are being taken. 

If the truck weighs more than 10,000 GVW (when fully loaded) and stays within the state boundary, it is required to obtain an intrastate USDOT Number and be insured up to the following levels depending on the type of cargo.

  • $1,000,000 liability insurance for trucks transporting oil 
  • $5,000,000 liability insurance for hazmat trucks
  • $300,000 liability insurance for trucks transporting household goods
  • $750,000 liability insurance for general freight trucks
  • $5,000 cargo insurance for the vehicle and $5,000 in case of a catastrophe for intrastate carriers

When looking to transport goods across state lines, truck drivers need to ensure that they have the right insurance policies. The insurance requirements for crossing state lines are more rigorous than those in place for intrastate travel. In addition to the respective insurance costs mentioned above, truckers must also fulfil FMCSA requirements, which includes having federal liability limits of either $750k or $1 million.

Safety regulations require you to submit certain forms through your insurance agent before you can receive your authority. These forms are required by both the state of Alabama and the USDOT, so make sure that they are filed with the relevant authorities as soon as possible. These forms assure the government that all the DOT trucking insurance requirements have been fulfilled from your side. Some common examples of such forms are as follows:

  • The BMC-91: This form is required to be submitted to the FMCSA as assurance that you have sufficient liability insurance to cover the risk of transporting freight across the state lines.
  • Form MCS-90: This is an endorsement that assures that the designated federal coverage is in effectively in place.
  • Form E: A certificate of compliance (of the liability insurance) with the financial responsibility laws of the respective state.
  • Form H: This form is required in some states and it is a guarantee that the sufficient amount of cargo liability insurance has been submitted by the business to the state department of its respective state.

Frequently Asked Questions:

What is the average cost of commercial truck insurance in Alabama?

The average cost of commercial truck insurance in Alabama is approximately $15,610 per year, though it can vary based on several factors.

What factors influence the cost of commercial truck insurance in Alabama?

The type of cargo being hauled and the duration of the business operation are key factors that influence the cost of commercial truck insurance in Alabama.

What are the minimum liability insurance requirements for trucks operating within Alabama state boundaries?

The minimum liability insurance requirements vary from $300,000 for trucks transporting household goods, to up to $5,000,000 for hazmat trucks.

What insurance is needed for trucks transporting goods across state lines from Alabama?

For interstate travel, trucks must meet the Federal Motor Carrier Safety Administration (FMCSA) requirements, which include federal liability limits of either $750k or $1 million.

What are some common forms that must be submitted to ensure compliance with insurance requirements in Alabama?

Some common forms include The BMC-91, Form MCS-90, Form E, and Form H, which verify compliance with various insurance and financial responsibility laws.

We hope you found this post informative and helpful. If you still have any further questions or would like to read more about commercial trucking insurance, please check out the rest of our blog posts on the Assured Standard website now!

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