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 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.
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:
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!
Arthur Williamson graduated with a degree in Business and Management at the University of California, Berkeley. He is knowledgeable about what small and big businesses require to keep operations moving.